WASHINGTON — The Federal Trade Commission opened a public comment period on whether to expand its impersonation rule to hold online platforms accountable for promoting government and business impersonation scams on Sept. 24.
The rulemaking could fundamentally change how major social media and AI-powered platforms moderate fraud content and expose them to FTC enforcement for the first time on this specific issue.
Government and business impersonation scams — in which fraudsters pose as federal agencies, banks or well-known companies to steal money and personal information — cost American consumers billions of dollars annually, according to FTC data. The scams have proliferated on social media and through AI-generated content that can convincingly mimic real organizations.
The FTC is seeking public input on whether platforms that host, promote or algorithmically amplify impersonation scam content should bear legal responsibility under federal consumer protection law.
Currently, platforms generally face limited liability for third-party scam content under existing law, including Section 230 of the Communications Decency Act. The FTC’s proposed approach would target platforms’ role in facilitating impersonation specifically, a narrower theory of liability than broader content moderation debates.
Consumer protection advocates have urged the FTC to act, arguing that platforms profit from advertising and engagement driven by fraudulent content while leaving victims with little recourse.
Technology industry groups have cautioned that platform liability for impersonation scams could lead to overly aggressive content removal and raise free speech concerns.
For consumers — particularly elderly Americans, who are disproportionately targeted by impersonation scams — the rulemaking represents a potential new layer of protection in an increasingly dangerous digital landscape.
The public comment period will remain open for 60 days. The FTC will review submissions before deciding whether to proceed with a final rule.