Google in ad clampdown as watchdog sharpens teeth
FINANCIAL Conduct Authority chief executive Nikhil Rathi today said Brexit could make it easier for the City watchdog to go after big tech companies who fail to block scam financial advertising.
The regulator has long called for Google, Facebook and others to be forced to stop selling advertising space to dubious financial firms and fanning record levels of fraud.
Previously, online platforms have been exempt from the rules applying to newspapers that make publishers responsible for the material that appears on their platforms. But Rathi said in a speech today that this exemption was removed when Britain left the EU.
This was seen as a move from the previous stance of the FCA, which was that dubious investment schemes should be included alongside paedophilia and other crimes in the Online Harms Bill, making it easier to prosecute.
“We see no reason why different standards should apply to a search engine or social media compared to a newspaper,” Rathi said. “If these platforms choose to display and profit from adverts for risky — and in some cases fraudulent — investments, they should also comply with financial promotions rules.”
The FCA has come under fire for failing to stop dubious investment schemes such as London Capital & Finance which were heavily advertised on social media before collapsing.