That ad for a famous store’s “closing sale” may not be from the store at all. The Federal Trade Commission says scammers are paying to run ads that pose as well-known businesses and government agencies, and the agency is now asking whether the platforms that run those ads should have to vet advertisers before the ads appear.
The FTC laid it out in a consumer alert published November 2, 2026 and updated on November 3.
Scammers Now Pay For Ads Just Like Real Businesses
According to the alert, scammers impersonate well-known businesses or government agencies in social media feeds, in search results and on shopping platforms, hoping people click. The ads can look just like the real thing, with familiar logos and polished photos.
That matters because the ad itself carries a stamp of trust. When something shows up at the top of a search or in the middle of your feed, it is easy to assume somebody checked it first.
The FTC says the platforms use tools that target ads by data such as age, browsing history and shopping habits, and that scammers can use the same tools. In other words, the same technology that shows you a sale on shoes can serve a fake offer to the people most likely to fall for it.
The FTC Is Weighing New Rules For Platforms
The agency is considering updating its Impersonation Rule, or adding a new rule about the ad-optimization tools platforms offer. The Impersonation Rule already bans impersonating government agencies and businesses.
The question now is whether platforms should do more to stop it. The FTC is asking the public about three ideas.
- Vetting advertisers and ads before they run.
- Giving people a way to report ads that impersonate a business or government agency.
- Investigating suspected impersonation ads and removing the ones that turn out to be scams.
The agency is also asking whether it should propose new requirements. The alert is part of that fact-finding, so nothing has been decided.
Why Grandparents Are Often In The Crosshairs
Scam ads work best on people who are busy, trusting or simply not expecting a trick. Many of us grew up when an ad in a newspaper or on television came from a business with a real storefront and a phone number.
Online, the cost of putting up a fake business is tiny, and a convincing logo can be copied in seconds. A scam ad that pretends to be a government agency can also add urgency, with talk of deadlines, refunds or benefits.
That is why family members should talk about it. A short chat at the dinner table about how ads can lie can save someone a lot of grief.
How To Protect Yourself From Imposter Ads
The simplest defense is skepticism. Be careful with ads that claim to come from a known company or an agency, and remember that an ad showing up on a trusted site does not prove it is real.
- Go to the company’s website by typing the address yourself, rather than clicking the ad.
- Be suspicious of prices that look too good to be true, such as brand-name goods at a steep discount.
- Remember that government agencies do not run ads asking for payment by gift card, wire or cryptocurrency.
- Pay with a credit card when shopping online, since it offers stronger dispute options than a debit card or a transfer.
- Check the web address carefully for small misspellings or extra words.
If you spot an ad that looks like a scam, report it. You can report scams to the FTC at ReportFraud.ftc.gov, and most platforms have a report option on the ad itself.
If you already clicked and paid, call your bank or card company right away and ask about disputing the charge. Save screenshots of the ad and the website, since they can help your case.
Keep a few safe habits for the holidays, when ad volume is at its peak. Bookmark the sites you use most, such as your pharmacy, your bank and your favorite retailers, and use the bookmarks instead of search ads.
When you search for a customer service number, be careful. A phone number that appears in an ad can lead to a scammer instead of the company, so look for the number on a statement, a card or the official website.
And if you help a parent or neighbor with their computer, take a minute to show them how to tell a sponsored result from a regular one. Small lessons like that go a long way against scams.
What This Means For Everyday Shoppers
For now, the burden of spotting fake ads falls on us. The FTC’s questions to the public show that regulators are asking whether that is fair, and whether the companies making money from ads should carry more of it.
In the meantime, treat every ad like a stranger knocking at the door. Look it over, verify who is behind it and, when in doubt, walk away.
If an ad pushes you to act fast, pay in an unusual way or share personal information, stop and check first.