Recommendation 37

HM Government · verbatim extract Accepted

We have consistently worked to notify Google and other online search and social media platforms of unauthorised and misleading or scam adverts we identify in order that they can be taken down, as well as including details of firms or individuals placing those adverts on the FCA warning list. We have also engaged with those platforms to encourage them to put in place adequate systems and controls to prevent such paid-for adverts appearing at all, and to identify and remove any adverts that appear organically. Following our engagement, Google recently announced that from 6 September, firms advertising financial services on its platforms will be required to show that they are Second Special Report of Session 2021–22 21 authorised by the FCA. We welcome all steps which protect consumers from scams and recognise that this is a positive move from Google. We will review the detail and will assess the outcome of Google’s decision once these changes take effect. services comply with UK law, and we expect all social media firms to ensure they are in compliance. We are looking at the operations of the major online platforms to determine whether they are compliant. Where they are not, we will take action to ensure that financial promotions on these platforms are lawfully communicated. While this is an important step from Google, we think a permanent and consistent solution requires legislation. We continue to believe the best way to protect consumers from illegal online scams is for financial harm to be included as an online harm in the government’s proposed Online Safety Bill. We believe these provisions should include online advertising (responsible for the majority of fraudulent activity) as well as user- generated content. We welcome the Committee’s recommendation on this issue. I trust the Committee finds this response helpful, and I thank you again for your scrutiny of our work. Nikhil Rathi Chief Executive 24 August 2021