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The SCAM Act prohibits online platforms from displaying fraudulent or deceptive commercial advertisements if the platform accepted payment for the ad and failed to take reasonable steps to prevent it. The bill requires platforms to verify advertiser identity, implement fraud detection systems, respond to reports within 72 hours, and remove violating ads within 24 hours. The Federal Trade Commission is authorized to enforce the law and promulgate regulations, and state attorneys general may bring civil actions on behalf of residents.
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