FTC’s Native Advertising Guidance: What You Need to Know
Marketers and publishers are continually innovating and developing new ways to deliver an enriching and highly integrated experience to consumers. One method is “native advertising,” which has become an increasingly important marketing strategy for brands. This type of ad bears a similarity in appearance and content to news and other non-commercial, editorial material that surround it online. Noticing its proliferating use by businesses who see it as a valuable alternative to more overt, transparent digital advertising, the Federal Trade Commission (FTC) recently issued an Enforcement Policy Statement on Deceptively Formatted Advertisements and Native Advertising guidance documents to guide businesses on how to legally utilize native ads.
However, these publications go beyond just offering a roadmap for advertisers to legally acceptable uses of native advertising; they also reflect and review a history of aggressive FTC enforcement against other forms of deceptively formatted advertising and portend similarly vigorous enforcement against this latest incarnation of the technique. It already has brought one enforcement action against native advertising and others undoubtedly are being planned. With the FTC’s heightened monitoring of native ads, brands should be well aware of the agency’s announced guidelines in this area and the risks of ignoring them.
In this two-hour LIVE Webcast, a panel of key thought leaders and advertising professionals assembled by The Knowledge Group will discuss the FTC’s legal framework for evaluating native advertising and show the audience how and when to effectively disclose sponsored content. Speakers will also discuss best practices in maximizing the effectiveness of native advertising strategies while minimizing potential risks and common pitfalls.
Some of the major topics that will be covered in this course are:
- Native Advertising: An Overview
- Disclosures and Disclaimers
- FTC’s Enforcement Policies
- Potential Risks and Common Pitfalls
- Best Practices
- Up-to-the-Minute Regulatory Updates
Laura M. Sullivan, Senior Attorney
Federal Trade Commission
From FTC’s perspective, what’s become increasingly important as companies engage with consumers in new and different ways online and in social media is that, regardless of the context, consumers know when they are receiving an advertising or promotional message. I will talk about:
- Influencer Marketing and the FTC’s Endorsement and Testimonial Guides;
- When separate disclosures are necessary to prevent deception in the context of native advertising, looking to the FTC’s Enforcement Policy Statement on Deceptively Formatted Ads and staff’s business guidance document on native advertising; and
- Ensuring that required disclosures are effective, that is, clear and prominent
William I. Rothbard, Attorney
Law Offices of William I. Rothbard
- History and legal basis of FTC regulation of deceptively-formatted advertising, from direct mail ads disguised as book reviews, infomercials and advertorials in the pre-Internet age, to fake news websites, sponsored product reviews, social influencers, and now native advertising in the digital age.
- FTC standards for evaluating whether a native ad is deceptively formatted: net impression of entire ad conveyed to appreciable segment of reasonable consumers in target audience, based on its context, overall appearance, and similarity or contrast of style to non-advertising content; necessity for “clear and conspicuous” disclosure to avoid native ad deception.
- Application of FTC standards in Lord & Taylor, first native advertising case after issuance of Native Ad Enforcement Policy Statement, and in hypotheticals provided in the FTC’s “Native Advertising: A Guide to Business.”
- Meaning of the election for FTC enforcement of new native advertising guidelines and advertising in general.
Alexis E. Payne, Partner
- Marketers have increasingly used native advertising, such as in online advertorials, sponsored content, and in social media contests, sweepstakes and other promotions. The webinar will examine this growing area of marketing and the implicated legal issues, including:
- The requirements under the FTC’s Native Advertising and Testimonials and Endorsements Guidelines
- The FTC’s and the NAD’s recent enforcement actions regarding native advertising
- Best practices when implementing native advertising campaigns, including requisite disclosures in social media
Who Should Attend:
- Advertising & Marketing Law Attorneys
- Advertising/Marketing Officers
- Advertising and Marketing Professionals
- Marketing Executives
- Advertising Agencies
- Private Companies
- Other Related/Interested Professionals
Laura Sullivan is a senior attorney in the Federal Trade Commission’s Division of Advertising Practices. She works on consumer protection issues related to digital advertising, technology, and health products, and led the development of the Commission’s Enforcement Policy Statement on Deceptively Formatted Advertisements and business guidance document on native advertising. At the Commission, Ms. Sullivan has served in a variety of positions, including attorney advisor to a Chairman of the Commission and Counsel to the Director of the Bureau of Consumer Protection. She has litigated cases in federal court against affiliate advertising networks, malware distributors, and marketers of health and financial products. Ms. Sullivan received her B.A. from Columbia University and her law degree from William and Mary School of Law..
Laura Sullivan is a senior attorney in the Federal Trade Commission’s Division of Advertising Practices. She works on consumer protection …
Bill Rothbard specializes in advertising and marketing law. A former FTC advertising enforcement attorney and Attorney-Advisor to the FTC Chairman, he counsels digital advertisers, direct response marketers, and affiliate marketers on their FTC compliance duties and represents clients in federal and state deceptive advertising investigations and enforcement actions. He has litigated and negotiated settlements in dozens of FTC and state Attorney General cases. Bill is a regular speaker at ad industry conferences, a regular contributor to the Direct Response Marketing Alliance (DRMA) newsletter, and author of FTCAdLaw Alert, an FTC blog published at www.FTCAdLaw.com.
Bill Rothbard specializes in advertising and marketing law. A former FTC advertising enforcement attorney and Attorney-Advisor to the FTC Chairman, …
As a partner at Partridge & Partners, Alexis Payne has a unique and broad practice that encompasses intellectual property, advertising, privacy, publicity, and litigation. Her extensive skill set enables her to provide cutting-edge, comprehensive services to an extensive client base for a wide array of matters.
When asked what her area of specialty is, Alexis somewhat jokingly responds "do you have a few minutes?" This is because her practice encompasses not only IP, but advertising, privacy and social media as well. And Alexis's roots in litigation and evolutionary foray into other practice areas enables Alexis to assist clients with what were, once upon a time, isolated silos of legal expertise.
As a partner at Partridge & Partners, Alexis Payne has a unique and broad practice that encompasses intellectual property, advertising, …
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Method of Presentation:
Experience in commercial or consumer law
NASBA Field of Study:
Business Law - Technical
NY Category of CLE Credit:
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Federal Trade Commission
Law Offices of William I. Rothbard
About Federal Trade Commission
About Law Offices of William I. Rothbard
About Partridge Partners
Partridge Partners combines big firm experience with boutique attention and personal, customized service based on decades of experience protecting some of the most valuable IP assets in the world. In addition to our IP capabilities, we regularly advise clients on advertising and marketing legal issues. We have extensive experience advising clients on all areas of advertising, including claim substantiation and comparative advertising disputes before the National Advertising Division and the National Advertising Review Board, as well as in federal court. And we regularly assist clients with all forms of promotions, ranging from basic offline sweepstakes to user-generated contests run over various social media channels, including implicated music licensing, IP, publicity rights, and mobile marketing issues.