In today’s Digest, we look at US senators pushing a probe into Facebook and Instagram scam ads, ChatGPT adding a new shopping research tool, and Alibaba topping revenue forecasts driven by instant retail and AI.

US Senators push probe into Facebook and Instagram scam ads

The Federal Trade Commission and Securities and Exchange Commission have been urged by US Senators Josh Hawley and Richard Blumenthal to probe Meta over allegations that Facebook and Instagram profited from ads promoting scams and prohibited goods. In a letter, the senators called for enforcement actions that could include penalties, profit disgorgement, and a ban on such advertising.

The push follows a Reuters report citing internal Meta documents in which the company projected it would earn about USD$16bn (£12.16bn), or roughly 10% of its 2024 revenue, from illicit ads. This included USD$3.5bn (£2.67bn) every six months from high-risk scam promotions. The documents also indicated Meta’s anti-fraud policies often failed to cover ads which regulators considered deceptive. Meta, however, claims that scam reports have fallen 58% over the past 18 months.

Despite Meta’s assurances, the senators pointed to its public ad library, which they say still features ads for gambling, crypto fraud, payment scams, and deepfake content impersonating politicians. 

ChatGPT adds new shopping research tool

OpenAI has introduced a new shopping research feature in ChatGPT, aimed at helping users make smarter purchase decisions through conversation-based recommendations. Rolling out on mobile and web for all tiers, the tool offers nearly unlimited access during the holiday season and generates personalised buyer’s guides based on user queries and preferences.

Built on a specialised GPT-5 mini model trained for shopping tasks, the tool compiles real-time information on prices, reviews, and specifications while maintaining transparency and user privacy. OpenAI says chats are not shared with retailers, and merchants can join via an allowlisting process. 

Alibaba tops revenue forecasts despite net profit fall 

Alibaba reported second quarter revenue of 247.8bn yuan (£26.6bn), beating analyst expectations of 242.65bn yuan (£26.07bn), as investments in one-hour delivery services drove user growth across its shopping platforms. US-listed shares rose 2% in premarket trading following the announcement. However, net profit fell 53% to 20.61bn yuan (£2.21bn).

Alibaba’s latest earnings come amid an escalating battle in China’s ‘instant retail’ market, where major e-commerce players are investing heavily in one-hour delivery services to win market share.The company is doubling down on AI and quick-commerce initiatives, which Alibaba Group CEO Eddie Wu described as key to building long-term strategic value.