The Federal Trade Commission (FTC) has announced its intention to consider updating its Rule on Impersonation of Government and Businesses. This move aims to prevent online platforms from engaging in ad-optimization practices that may inadvertently support impersonation scams.

In an Advance Notice of Proposed Rulemaking (ANPRM), the FTC is seeking public comment on how ad-optimization tools and services provided by social media, search engines, and other digital marketplaces may facilitate impersonation scams. The FTC emphasizes that these scams not only rob consumers but also undermine the trust essential for competitive markets.

According to FTC Director Christopher Mufarrige, impersonation scams have become increasingly sophisticated, leveraging the same advertising tools that legitimate businesses use. In 2025 alone, consumers reported losses of nearly $3.5 billion due to impersonation fraud, with a significant portion of these scams originating from digital platforms.

The ANPRM seeks to explore whether the FTC should impose new obligations on platforms to prevent impersonation ads from reaching consumers. It also aims to gather insights on the financial incentives driving platforms to offer ad-optimization services, the effectiveness of current measures to combat deceptive advertising, and potential new regulations to enhance consumer protection.

Consumers are encouraged to submit comments on the ANPRM, with a deadline set for 60 days after its publication in the Federal Register. The FTC's vote to submit the ANPRM was unanimous, reflecting a strong commitment to addressing the growing issue of impersonation scams.