Increased Scrutiny by FTC on the Blurring Lines of Digital Ads With Digital Content

The fashion industry and many others are blending advertisements with news, entertainment, and other content in digital media, referred to as “native advertising” or “sponsored content.”

 

For e-commerce vendors selling domestically or for export to destinations outside of the U.S., you should take note of this increase in scrutiny as it could ultimately correlate to the way you are thinking about advertising.

This is because if the government is paying attention, as is in this case, it is trying to ascertain where the bright line is (for this type of advertising) as it relates to non-deceptive marketing claims so that it can decide where enforcement measures (think monetary penalties) can be assessed.

According to the Federal Trade Commission (“FTC”) there is an increase in advertisements that more closely resemble the content in which they are embedded, which are graphical images, typically rectangular in shape, placed on publishers’ websites and mobile applications.

For this reason, the FTC is hosting a workshop on December 4, 2013 in Washington DC to explore the blurring lines of digital ads with digital content.  The purpose is to build on previous Commission initiatives to help ensure that consumers can identify advertisements as advertising wherever they appear.

The workshop will bring together publishing and advertising industry representatives, consumer advocates, academics, and government regulators to explore changes in how paid messages are presented to consumers and consumers’ recognition and understanding of these messages.

The general public is invited to make submissions and may do so online here.

Paper submissions may also be submitted and should reference "Native Advertising Workshop" both in the text and on the envelope, and should be mailed or delivered to: 

Federal Trade Commission, Office of the Secretary, Room H-113 (Annex X), 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580. 

The FTC requests that any paper submissions be sent by courier or overnight service, if possible, because postal mail in the Washington area and at the Commission is subject to delay due to heightened security precautions. 

Requests to participate should include a statement detailing any relevant expertise in digital advertising and should be submitted by October 29, 2013 via email to nativeads@ftc.gov.  Panelists selected to participate will be notified by November 6, 2013.

The workshop is free and open to the public.  It will be held at the FTC’s satellite building conference center, located at 601 New Jersey Avenue, N.W., Washington, D.C.  The Commission will publish a more detailed agenda at a later date.

For more information, click here.

 

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