YouTube Faces Calls for TV-Style Ad Vetting Amid Scam Surges
In the UK, the Liberal Democrats have called for YouTube to adopt television-style advertisement vetting procedures as the platform continues to host scam content and fraudulent celebrity endorsements.
The party argues that YouTube's current self-regulation model is inadequate given its position as the UK's second most-watched media service behind the BBC.
"It's clearly not right that a platform now more watched than almost any traditional broadcaster is still operating under a 'lighter touch' advertising regime," says Max Wilkinson MP, Culture Spokesperson for the Lib Dems.
Traditional broadcasters must submit advertisements to industry bodies Clearcast and Radio Central for pre-approval before broadcasting.
YouTube operates under a different system where content is reviewed after publication, often following user complaints.
Platform defends current practices
YouTube has rejected calls for broadcast-style regulation, maintaining its existing approach is sufficient.
A YouTube spokesperson says: "YouTube is not a broadcaster and should not be regulated like one. We have strict policies that govern the ads on our platform which we enforce rigorously."
The platform removed 411.7 million UK advertisements in 2024 and suspended 1.1 million advertising accounts, according to Google data.
"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," Max Wilkinson explains.
Rising scam concerns
The Advertising Standards Authority received 1,691 reports of potential scam advertisements online in 2024, with 177 cases flagged to platforms for removal.
AI-generated deepfake videos featuring celebrities, politicians and Royal Family members have become increasingly common in fraudulent advertising.
One reported scam advertisement depicted King Charles recommending cryptocurrency investments to viewers.
The ASA noted that deepfake celebrity endorsements represent one of the biggest trends in online advertising fraud.
Regulatory framework challenges
Current advertising oversight involves multiple agencies with different jurisdictions and powers.
The ASA monitors advertisements across television, radio and online platforms but can only act after content has been published.
"The scam ads that the Liberal Democrats are highlighting are fraudulent and tackling them falls to Ofcom under the Online Safety Act, which is designed to hold platforms to account for tackling and deterring fraud on their services," an ASA spokesperson has said.
The Online Safety Act requires platforms to assess risks of users encountering illegal content including fraud.
Ofcom has indicated it will consult on a fraudulent advertising code of practice that will become enforceable once approved by Parliament.
Industry implications
YouTube's advertising policies currently prohibit counterfeit goods promotion, dangerous products and scam content falsely claiming celebrity endorsements.
The platform allows some cryptocurrency advertising provided promoters comply with local laws in target countries.
"Regulations need to catch up with the reality of how people are watching content and unscrupulous advertisers must not be allowed to use loopholes to exploit people," Max Williamson argues.
The debate reflects broader challenges facing digital platform regulation as online services increasingly compete with traditional media for audience attention and advertising revenue.
