New Rule To Clamp Down On Scam Ads And Fake Endorsements Online

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The Communications Ministry is planning to make identity verification mandatory for all advertisers using paid or sponsored advertisements on social media platforms, in a move aimed at curbing online scams.

Deputy Communications Minister Teo Nie Ching said the measure will also cover digital gambling activities and the misuse of identities belonging to public figures, forming part of new responsibilities under the Risk Mitigation Code (RMC).

In a broader regulatory push, the initiative reflects growing concerns over the misuse of online advertising tools to spread financial scams and misleading content.

She said the code will come into force tomorrow under the Online Safety Act 2025 (ONSA) and will apply to social media platforms classified as licensed providers, particularly those with more than eight million users in Malaysia.

Teo said authorities have frequently encountered sponsored posts featuring the images of well-known individuals being used to promote dubious investment schemes and online gambling activities, making enforcement difficult due to unclear advertiser identities.

She added that under the new framework, the Malaysian Communications and Multimedia Commission (MCMC) will require all advertisers, whether individuals or registered entities, to undergo identity verification through platform systems before they are allowed to run paid advertisements.

In related developments, she urged social media providers to fully comply with the RMC as well as the Child Protection Code (CPC), both of which also take effect tomorrow, to strengthen online safety measures.

Teo also highlighted upcoming age verification requirements aimed at preventing children under 16 from creating social media accounts, which will require official identification documents such as identity cards or passports during registration.

She acknowledged that while some parents are still adjusting to the new requirements, many have expressed strong support, citing concerns over cyberbullying, sexual exploitation and online grooming risks.

The government said it will allow a reasonable transition period for platform providers to comply with the new obligations, while expecting a high level of adherence moving forward.

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