EU consumer groups file complaints against Google, Meta and TikTok over scam ads

BRUSSELS: European consumer organisations have lodged complaints against Google, Meta Platforms and TikTok, alleging the companies failed to adequately shield users from financial scams on their platforms and exposing them to possible penalties under the European Union’s Digital Services Act.

The complaints were submitted on Thursday by the European Consumer Organisation, BEUC, along with 29 of its member groups from 27 European countries. They were filed with the European Commission and national regulators under the DSA, which requires major online platforms to take stronger action against illegal and harmful content.

The move adds to broader pressure on large technology companies around the world to address harms linked to social media and online platforms, particularly those affecting children and other vulnerable users.

Consumer groups cite handling of scam content

In a statement, BEUC Director General Agustin Reyna said the platforms were not doing enough either to stop fraudulent advertising before it appeared or to respond effectively after being alerted.

Meta, TikTok and Google not only fail to proactively remove fraudulent ads but also do little when being notified about such scams.

Reyna also warned of the impact on consumers if the issue remained unaddressed.

If they fail to address the financial scams circulating on their platforms, fraudsters will continue to reach millions of European consumers daily, leaving people at risk of losing hundreds to thousands of euros to fraud.

According to the consumer groups, they flagged nearly 900 advertisements between December last year and March this year that they suspected breached EU law. They said only 27 per cent of those ads were removed, while 52 per cent of the reports were either rejected or ignored by the platforms.

The organisations have called on regulators to examine whether the companies are meeting their obligations under the DSA and to impose penalties where violations are found. Under the law, fines can be as high as 6 per cent of a company’s global annual turnover.

Companies reject or contest allegations

Google and Meta rejected the complaints and said they already take active steps to protect users from scams and policy violations.

A Google spokesperson said the company enforces its advertising rules strictly and blocks the vast majority of offending ads before they are shown to users.

We strictly enforce our ad policies, blocking over 99 per cent of violating ads before they ever run. Our teams constantly update these defences to stay ahead of scammers and protect people.

Meta said it removed more than 159 million scam advertisements last year, with 92pc taken down before any user report was made. A spokesperson said the company was investing in technology and cooperation to tackle the problem.

We invest in advanced AI, tools, and partnerships to stop them.

TikTok said it acts against content that violates its rules, while adding that scams are a challenge across the industry and that bad actors continue to change their methods.

The complaints now place the three companies under renewed scrutiny in the EU as regulators assess whether their systems for detecting and removing scam content comply with the bloc’s digital rules.