GMA: Social media advertising scams consumers encounter

In October, many consumers reported a significant increase in scams related to social media ads. The FTC's Consumer Protection Data Spotlight shows that such scams caused consumers to lose more than $117 million in the first six months of 2020 alone , compared to $134 million in all of 2019.

Additionally, Katherine Hutt, a spokeswoman for the Better Business Bureau, warned: "Consumers may see products advertised in social media from online boutiques. Maybe the product looks great in the ad, but it may be terrible when you actually get it."

Some consumers have suffered from this. Kyla Nardini saw an ad from Funnydressing on Facebook and spent more than $120 to order a blanket and four pillowcases for herself and a friend. But when she got the product, the result was not satisfactory.

"The pictures on the website were nothing like what I received, " Nardini said. " All I received was a blanket with a small decorative pillowcase that didn't fit my pillow at all."

In February , the Better Business Bureau launched an investigation into Funnydressing after consumers claimed they had not received products they ordered, were disappointed with items they did receive, or had not received refunds .

After investigation, security expert Payton found that Funnydressing was not registered until October 2020. However, the website claims to be a family business headquartered in Paris and has been established for ten years .

Additionally, to understand whether products advertised on social media meet the requirements, ABC News' Becky Worley tested several products with social media ads.

Wally bought the clothing from several online boutiques , including the top, from a website called ZOLUCKY, which claims to offer "high-quality and exclusive fashion products from independent designers."

According to Wally: "It looked in the ads like a beautiful Italian woven custom piece of designer fabric, but when I got it, it was polyester with white stitching."

There are plenty of well-known brands and reputable small businesses selling quality goods on social media, but experts say the platform is also home to fake ads and poor customer service.

Sellers should also take this as a warning and not give up long-term interests for the sake of short-term profits. If you want to develop on social media for a long time, compliance management is the only way.

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