Bill · S. 3774· Senate(119-S-3774)
SCAM Act
- Introduced
- 2/4/2026
- Last activity
- 2/4/2026 — Read twice and referred to the Committee on Commerce, Science, and Transportation.
- Sponsored by
- Ruben Gallego
- Cosponsors
- - 4 - 5
- Introduced
- In Committee
What this bill would do
The "Safeguarding Consumers from Advertising Misconduct Act" (or "SCAM Act") makes it illegal for online platforms to display fraudulent or deceptive commercial ads if they accepted payment and failed to take reasonable prevention steps. It requires platforms to verify advertiser identities, use detection systems, and provide tools for users to report scams. Platforms must investigate reports within 72 hours and remove violating ads within 24 hours of a determination. The bill allows the Federal Trade Commission (FTC), state attorneys general, and injured individuals to take legal action for violations. Additionally, the FTC must report on whether further laws are needed to stop online financial scams.
Yes· 3 of 30
Does this give people more protection from unfair business practices?+10
The bill significantly enhances consumer protection by prohibiting fraudulent ads and providing legal recourse for victims.
Would people over 65 be better off under this?+8
Targets the high volume of financial losses reported by older adults.
Would retired people be better off under this?+8
Directly addresses the high financial losses experienced by older adults.
The opposite
Would business owners be better off under this?-3
Increases compliance costs for those operating online platforms.
Who it would affect, and how
Potential Positive Impacts for People
-
Verification of Advertisers: Online platforms must verify the legal name, physical location, and government-issued identification of advertisers, which helps prevent the use of fake or stolen identities (Section 3(b)(1)(A)).
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Faster Response to Scams: Platforms are required to investigate reported fraudulent ads within 72 hours and remove them within 24 hours if they violate the Act, reducing the time people are exposed to scams (Section 3(b)(2)).
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User Reporting Tools: Platforms must provide a clear and conspicuous tool for users to report suspected fraudulent or deceptive ads (Section 3(b)(1)(D)).
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Legal Recourse for Victims: Injured individuals can sue for actual damages, and if the violation was willful or knowing, the court may increase the award up to 3 times the amount (Section 3(f)(1)-(2)).
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Recovery of Costs: A prevailing plaintiff in a civil action is entitled to litigation costs and reasonable attorney's fees (Section 3(f)(3)).
Potential Negative Impacts for People
- Limited Scope of "Deceptive": The bill limits the definition of "deceptive" to practices likely to cause financial harm, which may exclude other types of deceptive advertising that do not result in direct financial loss (Section 5(2)(C)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For Retirees+8Good For Seniors+8Good For Low Income Households+7Good For Students+7Good For Young Adults+7Good For Middle Aged+6Good For Middle Class Households+6Good For African Americans+5Good For Asian Americans+5Good For Children+5Good For Hispanic Americans+5Good For Immigrants+5Good For L G B T Q Community+5Good For Men+5Good For Native Americans+5Good For People With Disabilities+5Good For Veterans+5Good For White Americans+5Good For Women+5Good For Billionaires+4Good For High Income Households+4Good For High Net Worth Individuals+4Good For Ultra High Net Worth Individuals+4Good For Business Owners-3
- Economy And Finance
- Improves Consumer Protection+10
- Education And Technology
- Increases Big Tech Regulation+8Improves Data Privacy+2
- Governance And Ideology
- Increases Federal Power+4Increase States Rights+3
- National Security And Foreign Policy
- Improves Cybersecurity Defense+5
- Social Issues And Justice
- Improves Poverty Reduction+3
- 9/14/2026
- 2 Cosponsors added.
- 4/13/2026
- 2 Cosponsors added.
- 3/24/2026
- 1 Cosponsor added.
- 3/10/2026
- 1 Cosponsor added.
- 3/4/2026
- 2 Cosponsors added.
- 2/4/2026
- Read twice and referred to the Committee on Commerce, Science, and Transportation.
- 1 Cosponsor added.
- Introduced in Senate
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Katie BrittRepublican · Alabama
Susan CollinsRepublican · Maine
Christopher CoonsDemocrat · Delaware
Lindsey GrahamRepublican · South Carolina
Kirsten GillibrandDemocrat · New York
Amy KlobucharDemocrat · Minnesota
Bernie MorenoRepublican · Ohio
David McCormickRepublican · Pennsylvania
Peter WelchDemocrat · Vermont