SCAM Act | ChamberLight

IN COMMITTEE· 119TH CONGRESS

Senate BillS 3774Commerce

SCAM Act

INTRO FEB 4· LAST ACTION FEB 4

READING

12MIN

COSPONSORS

7BIPARTISAN

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LEGISLATIVE PROGRESS

STEP 2 / 8

Introduced

In Committee

Reported

Passed Senate

Passed House

Conference

To President

Became Law

WHAT THE BILL DOES

AI-written

This bill matters because online scams are a growing problem, costing Americans billions of dollars each year, and eroding trust in digital services. Currently, many online platforms are largely immune from legal responsibility for scam ads, even if they profit from them. This bill would shift some of that responsibility onto the platforms themselves.

If this bill becomes law, platforms would be compelled to actively fight fraudulent advertising, potentially leading to a safer online environment and fewer people falling victim to scams. If it doesn't pass, online platforms would likely continue operating under existing protections, and the responsibility for identifying and avoiding scams would remain primarily with individual users, potentially allowing scam activities to persist at current or even higher levels.

KEY PROVISIONS

4AI-extracted

PROVISION 01

Prohibits online platforms from displaying fraudulent or deceptive commercial advertisements if they accepted payment and didn't take reasonable steps to prevent them.

This establishes a direct legal responsibility for platforms regarding paid scam ads, which is a significant change from current law.

PROVISION 02

Requires online platforms to verify the identity and location of advertisers, detect impersonation, and use automated and manual systems to find fraudulent ads.

These procedures are the 'reasonable steps' platforms must take, aiming to stop scams before they reach users.

PROVISION 03

Mandates a clear tool for users to report suspected fraudulent ads and requires platforms to investigate and remove confirmed scam ads within specific timeframes.

This empowers users to flag scams and ensures platforms act swiftly on reports, providing a critical mechanism for enforcement.

PROVISION 04

Allows online platforms to be presumed compliant if they submit an FTC-approved fraud detection program and actively enforce it.

This provides a pathway for platforms to meet the requirements and gain some legal certainty, while still allowing the FTC to challenge non-compliance.

SPONSORSHIP

1 + 7

COSPONSOR BREAKDOWNBIPARTISAN · 86%

DEM 3 REP 4 IND 0

ACTION TIMELINE

2 EVENTS

FEB 4

Introduced in Senate

INTROREFERRAL

FEB 4

Read twice and referred to the Committee on Commerce, Science, and Transportation.

INTROREFERRAL

BILL INFO

TypeSenate Bill

NumberS 3774

Congress119th

StatusIn Committee

IntroducedFeb 4, 2026

Last actionFeb 4, 2026

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IN COMMITTEE· 119TH CONGRESS · COMMERCE, SCIENCE, AND TRANSPORTATION COMMITTEE · INTRODUCED FEB 4, 2026

Senate BillS 3774Commerce

SCAM Act

INTRODUCED FEB 4, 2026· LAST ACTION FEB 4, 2026

PASSAGE CHANCES

—%

READING

12 min

COSPONSORS

COMPLEXITY

Moderate

Call my reps Congress.gov

LEGISLATIVE PROGRESS

STEP 2 OF 8

Introduced

In Committee

Reported

Passed Senate

Passed House

Conference

To President

Became Law

Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law

WHAT THE BILL DOES

AI-written

KEY PROVISIONS

AI-extracted

high

Prohibits online platforms from displaying fraudulent or deceptive commercial advertisements if they accepted payment and didn't take reasonable steps to prevent them.

This establishes a direct legal responsibility for platforms regarding paid scam ads, which is a significant change from current law.

high

Requires online platforms to verify the identity and location of advertisers, detect impersonation, and use automated and manual systems to find fraudulent ads.

These procedures are the 'reasonable steps' platforms must take, aiming to stop scams before they reach users.

med

Mandates a clear tool for users to report suspected fraudulent ads and requires platforms to investigate and remove confirmed scam ads within specific timeframes.

This empowers users to flag scams and ensures platforms act swiftly on reports, providing a critical mechanism for enforcement.

med

Allows online platforms to be presumed compliant if they submit an FTC-approved fraud detection program and actively enforce it.

This provides a pathway for platforms to meet the requirements and gain some legal certainty, while still allowing the FTC to challenge non-compliance.

DEADLINES & DATES

AI-extracted

An AI model extracted this from the bill’s official record and can make mistakes. Check the official text ↗ (opens in new tab)

Not later than 1 year after the date of enactment

FTC to promulgate regulations to implement this section

Annual basis

FTC to review and revise regulations

Not later than 72 hours after submission of report or identification

Online platform investigation of reported/detected advertisement

Not later than 24 hours after concluding the investigation

Online platform notification to person who reported an ad (if applicable) of investigation outcome

Not later than 24 hours after making such determination

Online platform removal of an advertisement determined to violate the Act

PENALTIES & ENFORCEMENT

AI-extracted

An AI model extracted this from the bill’s official record and can make mistakes. Check the official text ↗ (opens in new tab)

TYPE	AMOUNT	WHO
administrative	Treated as a violation of a rule defining an unfair or deceptive act or practice prescribed under the Federal Trade Commission Act, subject to existing FTC enforcement mechanisms (e.g., civil penalties, cease-and-desist orders).	Online platforms in violation of the Act or its regulations

GLOSSARY

AI-written

Online platform: A website, application, or other digital service that allows users to interact with each other or access content, often displaying advertisements.
Fraudulent or deceptive commercial advertisement: An advertisement that falsely represents something, misleads consumers, or tricks them into making a purchase or providing personal information, often resulting in financial loss.
Section 230 of the Communications Act: A federal law that largely protects online platforms from legal responsibility for content posted by their users, treating them as distributors rather than publishers.
Federal Trade Commission (FTC): A U.S. government agency responsible for protecting consumers and promoting competition by preventing unfair, deceptive, or fraudulent business practices.
Promulgate regulations: The process by which a government agency creates and officially puts into effect new rules or laws to carry out a particular statute.

ACTION TIMELINE

2 EVENTS

FEB 4

Introduced in Senate

INTROREFERRAL

FEB 4

Read twice and referred to the Committee on Commerce, Science, and Transportation.

INTROREFERRAL

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Feb 4, 2026

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SCAM Act

LEGISLATIVE PROGRESS

WHAT THE BILL DOES

KEY PROVISIONS

SPONSORSHIP

ACTION TIMELINE

BILL INFO

READER REACTIONS

Discussion

SCAM Act

LEGISLATIVE PROGRESS

WHAT THE BILL DOES

KEY PROVISIONS

DEADLINES & DATES

PENALTIES & ENFORCEMENT

GLOSSARY

ACTION TIMELINE

SPONSORS

READER REACTIONS

What do you think?

Discussion

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