SCAM Act Introduced
Senate Banking Committee Sens. Ruben Gallego (D-AZ) and Bernie Moreno (R-OH) announced the bipartisan “Safeguarding Consumers from Advertising Misconduct (SCAM) Act.” The legislation requires that online platforms take reasonable steps to avoid fraudulent and/or deceptive advertising. The bill would strengthen the Federal Trade Commission’s (FTC) and states’ ability to enforce violations of consumer protection laws.
AFSA strongly supports the SCAM Act as part of broader efforts to reduce and eliminate fraud in lending. Credit washing, auto purchase fraud, and corrupt debt settlement companies all harm consumers, make lending more difficult and costly, and provide no benefit to consumers or to lenders.
Senator Gallego stated that the SCAM Act “will hold social media companies accountable and protect consumers’ money online.” He emphasized that companies that run ads have a “responsibility to make sure those ads aren’t fraudulent.” Senator Moreno echoed these comments, stressing the need to “protect American consumers from deceptive ads and shameless fraudsters….”
The bill has been referred to the Senate Banking Committee.
February 6th, 2026
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