FTC seeks public comment on whether platform AI ad optimization fuels impersonation scams

The U.S. Federal Trade Commission (FTC) announced it is considering updating the Government and Business Impersonation Rule or taking other actions to prevent online platforms' advertising optimization practices from fueling impersonation scams, and issued an Advance Notice of Proposed Rulemaking (ANPRM) seeking public comment. FTC Bureau of Consumer Protection Director Christopher Mufarrige stated that impersonation scams are no longer the work of isolated fraudsters but sophisticated operations driven by the same advertising and targeting tools that platforms sell to legitimate businesses. The FTC reported receiving over 1 million impersonation scam complaints in 2025, with consumers reporting losses of nearly $3.5 billion; nearly 30% of consumers reporting losses said they were first contacted on social media platforms, with related losses reaching $2.1 billion. The ANPRM seeks comment on questions including platforms' financial incentives for providing advertising optimization tools, how these tools optimize ad content and delivery, platforms' current measures to prevent such tools from being used for deceptive advertising, and whether these practices constitute unfair or deceptive acts and whether existing rules should be revised or new rules adopted.