The Run-Down: Last week, the Federal Trade Commission ordered 8 of the largest social media and video streaming platforms to report anti-fraud policies
- The companies must provide information to the agency within 45 days to aid in pandemic-related fraud research
- The agency is focusing on the ads that may expose consumers to financial scams, policies related to paid advertising disclosures, and companies’ use of AI ethics
Why You Should Care:
Between the recent ramped-up crackdown on white-collar crime and the fallout of the pandemic, many agencies are increasing their resources to develop and implement a new wave of anti-bribery, corruption, and fraud measures.
Many legal experts call this a sign for companies to continue, or begin, more seriously investing in self-regulating their corporate practices. As we’ve recently reported – the FTC is only getting more and more serious about regulating internal and external business behavior.
Now more than ever social responsibility should be a top priority for every organization. Professionals debate the legalities of this order, and what it hints at to come in the future.
In line with the trend we’ve seen, the order focused on platform’s influencer disclosure measures, ads promoting financial scams, and how technology like artificial intelligence is used to generate and optimize ads.
As we all know social media is becoming a part of daily life. From your great grandparents opening their first Facebook account to Fortune 500 companies’ using Instagram as a major advertising tool, the impact of social media is not to be underestimated. With technological advancements, the FTC is pushing for regulations that stay up with the ever-changing media landscape.
We’ve said time and time again – and we’ll say it again – now is the time to get ahead of the curve. Investing in integrity-first foundational compliance policies and procedures is no longer a luxury, it’s a necessity for any sustainable business.