The proposed update targets the mechanisms that allow fraudsters to exploit digital advertising systems. Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, said in an official statement that modern fraud has evolved beyond individual actors. "Today’s impersonation scams are no longer the work of isolated con artists; they are sophisticated, highly engineered operations powered by the same advertising and targeting tools that platforms sell to legitimate businesses." "Impersonation scams—especially when amplified by digital platforms that profit from them—do more than rob Americans of their hard-earned money," Christopher Mufarrige said.

Mufarrige noted that these platforms serve as the primary venues where fraudsters locate potential victims. "Yet these platforms are the very places fraudsters seek out consumers, exploiting their trust while platforms profit from optimizing and disseminating scam ads." The notice asks whether the Commission should require platforms to take concrete steps to prevent impersonation ads from ever reaching consumers.

Data from 2025 illustrates the scale of the problem. Consumers reported nearly $3.5 billion in losses to impersonation fraud during that year. The FTC received more than 1 million reports about imposter scams in 2025.

Social media played a central role in these incidents, with nearly 30% of consumers who lost money to scammers in 2025 first contacted on social media platforms. Reported losses from scams where victims were first contacted on social media reached $2.1 billion in 2025.

The regulatory process builds on previous actions. On March 1, 2024, the Federal Trade Commission published a supplemental notice of proposed rulemaking in the Federal Register titled Trade Regulation Rule on Impersonation of Government and Businesses. That notice requested additional public comment on whether the Commission should revise the existing rule. The current advance notice continues this inquiry by exploring potential new obligations for digital platforms.

The deadline for submitting comments on the Advance Notice of Proposed Rulemaking is 60 days after the notice is published in the Federal Register. Submitted comments will be posted to Regulations.gov. Mufarrige stated that the rulemaking aims to ensure that Americans participate in an online economy where truthful information guides consumer choice.

Timeline

Throughout 2025, consumers reported nearly $3.5 billion in losses to impersonation fraud, and the FTC received more than 1 million reports about imposter scams. Nearly 30% of consumers who lost money to scammers in 2025 were first contacted on social media platforms, where reported losses reached $2.1 billion.

On September 24, 2026, the FTC Commission vote to submit the Advance Notice of Proposed Rulemaking for publication was 2-0. The Advance Notice of Proposed Rulemaking will be published in the Federal Register on that date. Christopher Mufarrige stated that today’s advance notice of proposed rulemaking asks whether the Commission should require platforms to take concrete steps to prevent impersonation ads from ever reaching consumers.

Why It Matters

The proposed rule addresses the intersection of digital advertising infrastructure and consumer fraud. Mufarrige said that "free markets depend on trust, transparency and consumers’ ability to make informed choices." He added that impersonation scams, especially when amplified by digital platforms that profit from them, do more than rob Americans of their hard-earned money. "They erode the very foundation that allows competitive markets to function."

The reliance on digital platforms for essential services increases the stakes of these scams. "Increasingly, consumers rely on a small number of dominant digital platforms for everyday transactions—from shopping, banking and travel bookings to accessing government services," Mufarrige said. "The Commission’s mission has always been to safeguard the conditions under which competitive markets can thrive." By exploring potential new obligations, the agency seeks to align platform operations with this mandate.