European consumer advocacy groups have formally accused major online platforms of failing to protect users from financial scams, filing complaints under the European Union’s Digital Services Act against Alphabet’s Google, Meta Platforms and TikTok.
The complaints were lodged by the European Consumer Organisation (BEUC) together with 29 member groups representing 27 countries. They were submitted to the European Commission and to national regulatory bodies under the requirements of the Digital Services Act, which obliges large online platforms to boost measures against illegal and harmful content.
BEUC Director General Agustín Reyna said the three companies are not proactively removing fraudulent advertisements and that they often do little when such ads are reported to them. Reyna warned that without stronger action, fraudsters will continue to reach millions of consumers across Europe every day, exposing individuals to potential losses ranging from hundreds to thousands of euros.
According to the consumer groups, nearly 900 adverts suspected of breaching EU law were identified in reports filed between December and March. Of those flagged, the organisations say the platforms removed only 27% of the advertisements. Meanwhile, 52% of reports were either rejected by the platforms or left without action, the groups stated.
The complaint asks regulators to assess whether the companies are meeting their obligations under the Digital Services Act and to impose penalties where breaches are found. The DSA allows for fines that can reach as high as 6% of a company’s global annual revenue for serious violations.
The filings focus on how platforms moderate and remove harmful advertising content and on the responsiveness of their reporting and takedown processes. The consumer groups seek regulatory scrutiny to determine compliance and to ensure that enforcement tools available under the DSA are used where necessary.
Regulators now have the requests from BEUC and its member organisations to inform any investigations and potential enforcement steps. The consumer groups say their evidence on removal rates and reported cases should prompt a review of current platform practices.
Context and next steps
The Digital Services Act sets out new responsibilities for large online platforms to address illegal content and to be more transparent about their moderation systems. The complaint from BEUC and the national groups asks regulators to verify whether Google, Meta Platforms and TikTok have complied with these obligations in the specific area of financial scam advertisements.
Any formal investigations or penalties would depend on regulator findings following their assessment of the complaints and of platform practices. The consumer organisations are urging that available enforcement mechanisms be applied if non-compliance is established.