The UK’s more expansive, post-Brexit role in digital regulation continues to be felt today via aby Google, which has announced that it will, shortly, only run ads for financial products and services when the financial watchdog, the FCA, has verified the advertiser in question.
Thefrom August 30, per Google, which specifies that it will start enforcing the new policy from September 6 — meaning that purveyors of online financial scams who’ve been relying on its ad network to net their next victim still have more than two months to harvest unsuspecting clicks before the party is over (well, in the UK, anyway).
Google’s decision to allow only regulator-authorized financial entities to run ads for financial products & services follows warnings from the Financial Conduct Authority that it may takeif Google continues to accept unscreened financial ads, as the Guardian reported earlier.
The FCA told a parliamentary committee thisthat it can contemplate taking such action due to no longer being bound by European Union rules on financial adverts, which do not extend to online platforms, per the newspaper’s report.
Until gaining the power to go after Google itself, the FCA appears to have been trying to combat online financial fraud byto fight scams with anti-scam warnings.
According to the Register, the FCA paid Google more than £600,000 (~$830k) in 2020 and 2021 to run ‘anti-scam’ ads — with the regulator essentially engaged in a bidding war with scammers tointo Google’s coffers so that regulator warnings about financial scams might appear higher than the scams themselves.
The full-facepalm situation was presumably highly lucrative for Google. But the “Financial services advertisers will be required to demonstrate that they are authorized by the UK Financial Conduct Authority or qualify for one of the limited exemptions described in the UK Financial Services verification page.”action appears to have triggered a policy rethink. Writing in its blog post, Ronan Harris, a VP and MD for Google UK & Ireland, said:
“This new update Per the Register, Google offered to refund the FCA’s anti-scam ad spend — but, again, with advertising credits. The company’s blog also claims that it has pledged $5M in advertising credits to in partnership with the FCA over the last 18 months to help tackle this issue,” he added. “Today’s announcement reflects significant progress in , publishers, and advertisers. While we understand that this policy update will impact a range of advertisers in the financial services space, our utmost priority is to keep users safe on our platforms — particularly in an area so disproportionately targeted by fraudsters.” fraud public awareness campaigns in the UK. So not $5M in actual money, then.
The UK parliament’s Treasury Committee was keen to know whether thewould refund the spend in cash. But the FCA’s director of enforcement and market insight, Mark Steward, was unable to confirm what it would do, according to the Register’s report of the committee hearing.
We’ve contacted the FCA for comment on Google’s policy change and questions about the refund situation and will update this report with any response. The financial watchdog has also been concerned about financial scam ads running onin recent years.
In 2018, legal action by a well-known UK consumer advice personality, Martin Lewis — who filed a defamation suit against Facebook — led thegiant to add a ‘report scam ad’ button in the market as of July 2019.
However, research by consumer group, Which? earlier thissuggested that neither Facebook nor Google had entirely purged financial scam ads — even when they’d been reported. Per the BBC, Which? ‘s survey found that around a third (34%) of the scam adverts reported to it, vs. Facebook failed to draw well over a fifth (26%).
It’s almost like the incentives for online ad giants to act against lucrative online scam ads simply aren’t pressing enough. More recently, Lewis has been pushing for scam ads to be included in the scope of the UK’sBill. The sweeping piece of digital regulation aims to tackle a plethora of so-called ‘online harms’ by focusing on regulating user-generated content.
However, Lewis makes the point that a scammer merely needs to pay an ad platform to promote their fraudulent content for it to escape the scope of the planned rules, telling the Good Morning Britain TV program today that the situation is “ludicrous” and “needs to change”.
It’s certainly a confusing carve-out, as we reported when the bill was presented. Nor is it the only disconnected component of the planned legislation. However, the government may believe the FCA has the necessary powers to tackle the problem of financial fraud point. We’ve contacted the Department for Digital, Media, Culture, and Sport for comment.