Lib Dems push for urgent regulation of YouTube AI ad scams

The Liberal Democrats are calling for urgent regulation of YouTube advertising, citing a pervasive spread of scams, including deepfakes, impersonations of public figures, and fraudulent investment schemes, with what they describe as minimal oversight. The party emphasizes that despite YouTube’s significant viewership, surpassing ITV in weekly UK viewership and dominating children’s media consumption, its advertisements remain largely unchecked by independent regulators.

Current regulations place YouTube adverts under the same Advertising Standards Authority (ASA) rules as television. However, unlike traditional broadcasters, there is no mandatory pre-approval or real-time scrutiny of ads on YouTube. Independent enforcement primarily relies on consumer complaints, meaning many deceptive campaigns can circulate for days before any action is taken.

Recent examples of these fraudulent campaigns include sophisticated advertisements that deployed AI-generated voices and likenesses of prominent figures, such as consumer champion Martin Lewis, to promote cryptocurrency schemes without their consent or involvement. These particular videos garnered thousands of complaints on platforms like Reddit and X, misleading users into believing they were receiving legitimate financial advice. Other reported scams include false product claims, fraudulent diet pills, and fake competitions, with users noting a lack of clear mechanisms to report or block such content. The ASA has previously highlighted a rise in "celebrity deepfake" and "impersonation" scams, particularly within financial services, underscoring the vulnerabilities of online platforms.

Max Wilkinson, the Liberal Democrats’ spokesperson for culture, media, and sport, stated that the current system leaves the public vulnerable. "We cannot allow a two-tier system where traditional broadcasters face robust scrutiny, while a digital giant like YouTube is allowed to mark its own homework," he said.

The party proposes bringing YouTube advertising in line with the regulatory framework applied to TV and radio. This includes implementing tougher oversight, clearer accountability, and granting Ofcom, the communications regulator, the power to levy fines on platforms that repeatedly permit harmful or misleading advertisements. The Liberal Democrats also advocate for the revenues generated from these fines to be allocated to support victims of online scams.

Currently, YouTube ads are served via Google Ads and operate under a voluntary framework developed by the tech industry. This contrasts sharply with the ASA’s co-regulatory model for broadcast advertising, where Ofcom retains crucial backstop powers, and many advertisements require pre-clearance before airing.

While some Labour MPs privately acknowledge that online ad regulation lags behind, there appears to be limited political appetite for significant reform. Concerns have also been raised that new restrictions could complicate efforts to engage voters under 35, many of whom are less connected to traditional media.

This push for advertising reform aligns with recent developments, as Ofcom is reportedly preparing to seek new legal powers to compel platforms like YouTube to give greater prominence to public service content. This initiative stems from concerns that trusted news, children’s programming, and UK-produced shows are becoming "invisible" to younger audiences. The Liberal Democrats argue that the same logic should apply to advertising, given the surge in misleading financial content and impersonation scams.

"YouTube is no longer a niche platform – it’s one of the main ways people of all ages consume news, entertainment and information," Wilkinson added. "The government needs to act now to ensure that consumers are properly protected."

In response, a YouTube spokesperson asserted: "YouTube is not a broadcaster and it should not be regulated like one. We have strict policies that govern the ads on our platform which we enforce rigorously. When we find ads that breach our policies we take immediate action, including removing the ads and suspending the account when necessary."