FTC asks if social media platforms should stop impersonation scam ads
The 2024 Impersonation Rule reaches the impersonator and not the company optimizing the ad — a gap the FTC frames in Coasean terms as an unpriced externality. The agency already tried to close it with a means-and-instrumentalities provision, dropped it in December 2024 after commenters objected that it came through the wrong procedural door, and has now re-asked the identical question through that door, five years after it started.
The 2024 Impersonation Rule reaches the impersonator and not the company optimizing the ad — a gap the FTC frames in Coasean terms as an unpriced externality. The agency already tried to close it with a means-and-instrumentalities provision, dropped it in December 2024 after commenters objected that it came through the wrong procedural door, and has now re-asked the identical question through that door, five years after it started.
On September 24, 2026 the FTC opened an advance notice of proposed rulemaking, Matter No. R207000, asking whether search, social and marketplace platforms should bear obligations for ad-optimization tools that further government and business impersonation scams.
Why it matters: Impersonation is the most-reported fraud in the country: over a million reports and nearly $3.5 billion in 2025, with nearly 30% of losses beginning on social media. Impersonated small businesses eat refunds and reputational damage they never caused, and the comment docket is open to both.
Date to watch: Federal Register publication of the ANPRM, which had not occurred as of September 25, 2026 and which starts a 60-day comment clock at regulations.gov under Matter No. R207000.
Sources:
- FTC press release, impersonation ANPRM (2026-09-24)
https://www.ftc.gov/news-events/news/press-releases/2026/09/ftc-seeks-public-comment-whether-update-rule-impersonation-government-businesses-address-platforms - FTC ANPRM, Matter No. R207000 (2026-09-24)
https://www.ftc.gov/system/files/ftc_gov/pdf/r207000_impersonation_anprm_1.pdf - FTC Federal Register notice page (2026-09-24)
https://www.ftc.gov/legal-library/browse/federal-register-notices/rule-impersonation-government-businesses-anprm - Rule on Impersonation of Government and Businesses (2024-03-01)
https://www.ftc.gov/legal-library/browse/rules/impersonation-government-businesses-rule - FTC data, $3.5 billion in imposter losses (2026-06-15)
https://www.ftc.gov/news-events/news/press-releases/2026/06/ftc-data-show-people-reported-losing-3-point-5-billion-imposter-scams-2025 - FTC Protecting Older Consumers Report (2025-12-01)
https://www.ftc.gov/system/files/ftc_gov/pdf/P144400-OlderAdultsReportDec2025.pdf - Regulations.gov comment portal (2026-09-24)
https://www.regulations.gov - eCFR, 16 CFR Part 461 (2024-03-01)
https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-461
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