FTC Updates Policy For Unmasking 'Native Advertising'
This article was originally published in The Rose Sheet
FTC publishes an enforcement policy statement addressing a rise in native advertising and deceptively formatted ads. The statement explains how the commission will apply its current enforcement standards to target deceptive content, including promotions disguised as news stories in violation of its policies.
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FTC proposes settlements with marketing and public relations firm Creaxion and Inside Publications over regulatory violations in advertising for Fit Organic Mosquito Repellent including failing to disclose US Olympic gymnasts as paid social medial endorsers and misrepresenting that paid commercial ads are opinions from an independent or objective publishers or sources.
Consumer product marketers want more flexibility with disclosures for paid content and endorsements than FTC advises in its guidance, but firms should “tread carefully” and not expect the commission to ease up, says attorney Joan Stewart. FTC could base enforcement on its own research underscoring that advertisers should clearly disclose when they pay endorsers, Stewart says.
FTC says advertisers “have flexibility as to how to identify native ads as ads, so long as consumers notice and process the disclosures and comprehend what they mean.”