The Federal Trade Commission of the United States announced on Thursday that it has issued orders to eight social media and video streaming companies to provide information about how they screen misleading advertisements on their platforms.
Last week, the FTC announced plans to vote on whether they should issue the orders to the companies. The Commission voted 4-0 during an open meeting that took place yesterday, and the orders have been issued to Meta (formerly known as Facebook), Instagram, Twitter, TikTok, YouTube, Snap, Twitch and Pinterest.
The FTC is asking the companies how they examine and impose restrictions on paid commercial advertising that is misleading or ‘’exposes consumers to fraudulent health-care products, financial scams, counterfeit and fake goods, or other fraud’’.
It’s also requesting information on how they make sure that their users can differentiate commercial advertising on their platforms.
Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, said: ‘’Social media has been a gold mine for scammers who tout sham products and other scams that have cost consumers enormously in recent years.”
”This study will help the FTC ensure that social media and video streaming companies are doing everything they can to keep scammers and deceptive ads off their platforms,” Levine added.