The FTC will not expand liability for companies that enable impersonation scams

The Federal Trade Commission decided not to expand its proposed rule against impersonation scams. It will not hold companies liable if they knowingly provide goods or services used in these scams. The agency will only focus on whether to prohibit the impersonation of individuals.

The FTC had considered a significant expansion of liability. It would have made companies responsible if they knew their products or services were being used to facilitate impersonation schemes. This decision means that the agency will not pursue that path, at least for now.