Treasury committee calls for advertising to be included in Online Safety Bill
The Treasury committee has recommended the government include online advertising in its Online Safety Bill to prevent further harm to customers being offered fraudulent financial products.
The committee published its economic crime report, in which it said the government should also ensure that financial services advertising regulations apply also to online companies, and that the Financial Conduct Authority (FCA) has the necessary powers to effectively enforce the regulations.
Read more: JustUs founder says crypto should be included in Online Safety Bill
“Online companies should not profit both from paid-for advertising for financial products and for warnings issued on their platforms by the FCA about those advertisements,” the committee said in the report.
“We encourage all online companies to work constructively with government agencies and the wider public sector to fight online scams and fraud.
“The government should also ensure that regulators and law enforcement agencies have the powers they need to ensure that online companies provide them with information and comply with regulatory requirements.”
Read more: Google commits $5m of advert credits to help combat financial scams
Myron Jobson, senior personal finance analyst at Interactive Investor, welcomed the Treasury committee’s recommendations.
“The government should not pull its punches when tackling the scourge of financial scams which has mushroomed in recent history,” said Jobson.
“Unfortunately, there isn’t a silver bullet solution, but the report outlines a number of sensible steps that can be taken to help plug the flood of financial scams.
“The committee is absolutely correct in demanding that financial services advertising regulations apply also to online companies and for the government legislate to make reimbursement mandatory for bank transfer scam victims.”
Separately, the Treasury committee welcomed the announcement by the Treasury that the government will legislate to bring cryptoassets advertising in line with other financial services and products, and that the FCA is strengthening financial promotion rules.
The government has two months to respond to the committee’s recommendations.
