The main way your average social media platform would end up earning a reasonable amount of revenue is by selling ad space in their apps and websites. While it’s perfectly reasonable that they end up doing it, it’s worth noting that many of the ads shown on these platforms are often intended as scams, and it doesn’t seem like these platforms are doing much- thing to stop these scams from being advertised in the first place.
Online fraud has become a truly massive problem around the world, and UK lawmakers have actually come up with a relatively unique solution for the most part. This solution would essentially imply that social media platforms are required to reimburse users who are victims of scams advertised on the aforementioned platforms. The solution was originally proposed by Mel Stride who currently chairs the Treasury Committee, and it’s something that has woken a lot of ears within the UK government.
Banks are already required to reimburse victims of fraud as long as they can prove they have done enough to protect themselves, so it only makes sense that this type of legislation is also being proposed for social media. According to Stride, social media sites also profit from these scams since they receive ad revenue in an effort to get them started on the site, and that’s the kind of thing they should definitely be penalized for in order to put end to the prevalence of these advertisements.
Legislation has already been put in place to require Facebook and other platforms to ensure that a financial service they advertise has been registered with various regulatory authorities, but there is no current schedule that these platforms will be required to follow. . Therefore, stricter measures might be necessary. Suffice it to say, this type of legislation is likely going to be something that social media companies would push back on, but many would agree that if passed, it would be a step in the right direction.
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