European consumer groups filed complaints Thursday in Brussels alleging Google, Meta, and TikTok failed to remove numerous financial-scam advertisements [1].
The move marks a significant escalation in the enforcement of the Digital Services Act, as regulators scrutinize how big-tech platforms protect users from fraud. If the complaints are upheld, the platforms could face substantial penalties for failing to meet their legal obligations under EU law [2].
The complaints were lodged by the European Consumer Organisation, known as BEUC, which represents various consumer groups across the European Union [1]. According to the filings, the platforms are insufficiently protecting users from online financial fraud, which constitutes a breach of their obligations under the Digital Services Act [2].
Data provided by the consumer groups indicates that nearly 900 suspected scam ads were reported to the companies [2]. Despite these reports, only 27 percent of the identified advertisements were actually removed [2].
The BEUC argues that the low removal rate demonstrates a systemic failure by the three companies to police their advertising ecosystems effectively. The group said the platforms have allowed a significant volume of fraudulent content to remain active, potentially exposing millions of users to financial loss [1].
This regulatory action focuses on the systemic risks posed by algorithmic ad delivery and the lack of transparency in how these platforms identify fraudulent actors. The complaints seek to force the companies to implement more rigorous verification processes for financial advertisers and to increase the speed of content removal once a scam is reported [2].
“nearly 900 suspected scam ads were reported”
This action signals a shift toward stricter accountability for platforms under the Digital Services Act. By quantifying the failure rate of ad removals, consumer groups are providing the European Commission with a data-driven basis to argue that current moderation systems are inadequate, potentially leading to mandatory audits or higher fines for systemic negligence in fraud prevention.
