Google, Meta and TikTok face EU complaints over financial scam ads

Investing.com -- Alphabet's Google, Meta Platforms and TikTok received complaints from European Union consumer groups on Thursday over alleged failures to protect users from financial scams on their platforms.

The European Consumer Organisation (BEUC) and 29 member groups across 27 European countries filed the complaints with the European Commission and national regulators under the Digital Services Act. The legislation requires large online platforms to increase efforts against illegal and harmful content.

BEUC Director General Agustín Reyna said the companies not only fail to remove fraudulent advertisements proactively but also do little when notified about such scams. He warned that without action, fraudsters will continue reaching millions of European consumers daily, putting people at risk of losing hundreds to thousands of euros.

Consumer groups reported nearly 900 advertisements suspected of violating EU laws between December and March. The platforms removed only 27% of the flagged ads, while 52% of reports were either rejected or ignored, according to the groups.

The consumer organizations called on regulators to investigate whether the companies comply with the rules and to impose penalties for violations. Under the Digital Services Act, fines can reach up to 6% of a company's global annual revenue.

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