Washington – The Computer & Communications Industry Association testified today before the Kansas House Financial Institutions and Pensions Committee and the Senate Financial Institutions and Insurance Committee regarding HB 2648, legislation intended to address fraudulent online advertisements. While supporting efforts to combat scams and protect consumers, the association cautioned that the bill’s current approach could unintentionally undermine effective fraud prevention efforts and create new burdens for businesses.
CCIA and its member companies share lawmakers’ commitment to protecting consumers from scams, phishing attempts, impersonation schemes, and other deceptive practices online. Technology companies invest heavily in fraud detection systems, review millions of advertisements and pieces of content to identify violations, work closely with law enforcement, and collaborate with other stakeholders to address emerging threats.
CCIA warned that several provisions in HB 2648 could divert resources away from the most effective fraud-fighting tools already in place. The bill would require platforms to determine the status of allegedly fraudulent advertisements within 72 hours and notify the reporting party within 24 hours, timelines that may encourage the removal of lawful content simply to avoid potential liability.
The measure also includes extensive compliance and reporting mandates that could be difficult to implement at scale and may create barriers for smaller platforms or new competitors in the digital advertising marketplace. In addition, the bill establishes a private right of action with statutory damages of at least $10,000 per violation, which could invite costly litigation even where there is little evidence of actual harm. CCIA also noted that certain provisions may raise constitutional concerns and conflict with existing federal law.
The following statement can be attributed to Megan Stokes, State Policy Director for the Computer & Communications Industry Association, who testified on the bill:
“Addressing online fraud is a priority for our members, and technology companies are already investing significant resources to detect scams, remove fraudulent advertisements, and work with law enforcement to disrupt bad actors. While we appreciate the legislature’s focus on this issue, HB 2648 would benefit from targeted amendments, including reconsidering the private right of action, scaling back prescriptive reporting mandates, and ensuring financial penalties are proportionate. Policymakers should prioritize flexible, collaborative approaches that reflect the realities of how fraud is addressed online.”
