YouTube Ads Face Urgent Call for Regulation Amid Scam Surge
Liberal Democrats Demand Stricter Oversight for Video Platform
Liberal Democrats are demanding immediate regulatory action for YouTube advertisements, citing a proliferation of sophisticated scams, including AI-generated impersonations and fraudulent investment schemes, with minimal platform oversight.
Deepfakes and Deception Plague Platform
The party highlighted that YouTube advertising remains largely unchecked by independent bodies. Recent data indicates the platform now surpasses ITV in weekly UK viewership and dominates children’s media consumption, underscoring the urgent need for scrutiny.
A prominent example involved ads using an AI-generated voice and likeness of consumer champion Martin Lewis to promote a cryptocurrency scheme. These deceptive videos, which have prompted thousands of complaints on social media, mislead viewers into believing they are receiving financial advice from a trusted source, despite Lewis‘s complete lack of involvement.
Other reported scams include false product claims, fraudulent diet pills, and fake competitions. Users have shared experiences of ads impersonating UK media personalities or falsely offering government grants, with limited clarity on how to report or block such content.
Calls for Equal Scrutiny
Unlike traditional broadcasters, YouTube adverts do not undergo pre-approval or real-time scrutiny. Action is typically only taken after a complaint is filed, a stark contrast to the robust oversight faced by TV and radio advertising.
“We cannot allow a two-tier system where traditional broadcasters face robust scrutiny, while a digital giant like YouTube is allowed to mark its own homework.”
—Max Wilkinson, Liberal Democrats’ Spokesperson for Culture, Media and Sport
The Liberal Democrats are advocating for YouTube advertising to align with the regulatory framework for TV and radio. This includes enhanced oversight, clearer accountability, and empowering Ofcom to impose fines on platforms that repeatedly host harmful or misleading advertisements. They also propose that revenue from such fines be allocated to supporting victims of online scams.
A Digital Giant Unchecked
YouTube ads are delivered via Google Ads and operate under a voluntary industry-created framework. This differs significantly from the Advertising Standards Authority’s co-regulatory model for broadcast advertising, where Ofcom holds backstop powers and many adverts require pre-clearance.
While some Labour MPs privately acknowledge that online ad regulation lags, there is limited political momentum for substantial changes. Concerns have been raised that new restrictions could alienate younger voters who are less engaged with traditional media.
Recent investigations revealed Ofcom’s intent to seek new legal powers requiring platforms like YouTube to prioritize public service content. This move aims to address worries that vital content, including news and children’s programming, is becoming less visible to younger audiences.
Urgent Need for Action
The Liberal Democrats argue that the same logic for prioritizing public service content should extend to advertising, especially given the rise in misleading financial promotions and impersonation scams.
“YouTube is no longer a niche platform – it’s one of the main ways people of all ages consume news, entertainment and information. The government needs to act now to ensure that consumers are properly protected.”
—Max Wilkinson, Liberal Democrats’ Spokesperson for Culture, Media and Sport
A YouTube spokesperson stated, “YouTube is not a broadcaster and it should not be regulated like one.”
They added, “We have strict policies that govern the ads on our platform which we enforce rigorously. When we find ads that breach our policies we take immediate action, including removing the ads and suspending the account when necessary.”
In 2022, the UK saw a significant rise in online fraud incidents, with Action Fraud reporting over 130,000 cases, resulting in billions of pounds lost (Action Fraud 2022 Report).
