FTC Opens Rulemaking to Curb Impersonation Scams on Digital Platforms

The Federal Trade Commission has opened a rulemaking proceeding to curb government and business impersonation scams that spread through the advertising-optimization tools of search engines, social media and other digital marketplace platforms. The advance notice of proposed rulemaking was published on 1 October 2026 in the Federal Register (Vol. 91, No. 189, Proposed Rules, p. 62347) under 16 CFR part 461, Matter No. R207000. The Commission is accepting written comment, data and arguments until 30 November 2026.

The proceeding revisits the Impersonation Rule on Impersonation of Government and Businesses, promulgated in March 2024 (89 FR 15017) under section 5 of the Federal Trade Commission Act. The FTC states that the existing rule bars impersonating government, businesses and their officers, but does not expressly address platform conduct that furthers such scams. In December 2024 the Commission declined to adopt a proposed “means and instrumentalities” provision; it now asks whether to amend the rule, write a new one, or rely on alternatives to regulation.

The notice cites a steep rise in fraud losses:

• Consumers reported losing approximately $16 billion to fraud in 2025, a 25% increase compared with 2024.
• The FTC estimated that the true cost of fraud in 2024, adjusted for underreporting, may be as high as $195.9 billion.
• The agency received more than 1 million imposter reports last year, with consumers reporting nearly $3.5 billion in losses.
• Almost 30% of consumers who reported losing money to scammers in 2025 said the contact began on social media, with reported losses reaching $2.1 billion.

Platform incentives under scrutiny

The Commission frames the problem as a market failure: platforms earn advertising revenue from all paid ads, including scam ads, while bearing little responsibility for the harm. In its words, platforms “internalize the revenue but externalize the risk.” The notice cites a Reuters investigation reporting that Meta allegedly earned an estimated 10% of its 2024 revenue—about $16 billion—from scam advertisements, and lists Google, Facebook, Amazon, the Apple App Store and LinkedIn among the platforms that have become essential infrastructure of the United States economy.

Examples cited include Medicare-impersonation ads delivered to seniors through Meta’s targeting tools, fake “giveaway” ads impersonating McCormick Spice, and search-engine malvertising in which scammers buy sponsored placements impersonating hotels and banks.

Questions posed to the public

The FTC asks how many platforms offer advertising-optimization tools, how much revenue those tools generate, and whether platforms verify advertiser identity, screen or monitor for impersonation ads, investigate complaints, or terminate services for confirmed offenders. It also seeks comment on takedown timelines, overlap with federal, state and local law, and whether new requirements would discourage innovation, including in tools that use artificial intelligence. Consumer education and voluntary industry measures are floated as alternatives to a binding rule.

Authority and existing safeguards

The Commission states that section 230 of the Communications Decency Act does not deprive it of authority over platform conduct, and that a rule would let it seek court-ordered consumer redress under section 19 of the FTC Act in a single district court action. Existing measures—section 3 of the TAKE IT DOWN Act, section 512 of the Digital Millennium Copyright Act and the INFORM Consumers Act—are described as too narrow, covering only certain content, high-volume sellers or qualifying online marketplaces.

For readers, the notice is the first formal step toward binding rules on the ad tools that place scam advertisements in front of consumers, and the comment record will determine whether the FTC amends the Impersonation Rule, promulgates a new one, or falls back on enforcement and education. Comments may be filed at regulations.gov or by mail to the FTC’s Office of the Secretary in Washington, D.C.; the staff contacts are Hong Park and Elyse McNamara of the Division of Enforcement, Bureau of Consumer Protection.

Source: Federal Register, Vol. 91, No. 189, 1 October 2026, Proposed Rules, p. 62347 (official reference: 2026–20143).