Call for input - Consumer Investments - Which? response

Summary

Which? welcomes the opportunity to respond to this Call for Input which provides an important forum to consider how consumers can be empowered to invest with confidence and be better protected from scams on online platforms. 

• Online platforms are playing a growing role in enabling scammers to reach and defraud victims and yet have no legal obligations to prevent scam content on their sites.
• The risk-based approach to scam adverts currently taken by online platforms is no longer adequate to address fraud in online promotions. Which? believes that there is a strong case for regulation of advertising on online platforms which is underpinned by the precautionary principle.
• Fundamental to addressing scams online will be introducing legally enforceable responsibilities that apply to online platforms as communicators of adverts to have in place measures for prevention of scams, better and faster reaction to reported scams, more transparency, and oversight by relevant authorities.