FTC to explore curbing digital advertising practices that enable impersonation scams

The FTC’s move to investigate digital advertising practices linked to impersonation scams signals growing regulatory scrutiny on online platforms, which could reshape risk profiles for middle-market credit portfolios exposed to digital ad-dependent businesses. Heightened enforcement may increase compliance costs and operational risks for firms reliant on digital marketing, affecting cash flow stability and creditworthiness. Credit professionals should monitor potential shifts in digital ad regulations as they could influence borrower performance and sector valuations in the evolving regulatory landscape.