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ARTICLE · 04 APRIL 2016

National Retailer Settles FTC Native Advertising Complaint

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
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Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

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The potential pitfalls of native advertising were on display this month at the Federal Trade Commission (FTC).

United StatesConsumer Protection
Richard Maidman
Richard Maidman
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The potential pitfalls of native advertising were on display this month at the Federal Trade Commission (FTC). The agency reported that national retailer Lord & Taylor settled with it on charges that the company improperly paid for native advertisements. Lord & Taylor allegedly did not disclose that an article in the online publication Nylon, as well as a Nylon Instagram post, were paid promotions for one of the company's clothing collections. In addition, the company allegedly gave fashion "influencers" dresses and then paid them to post photos wearing them on social media. The company's contracts with the influencers obligated them to use the "@lordandtaylor" Instagram user designation and hashtag "#DesignLab" in the captions of their photos. The FTC charged that Lord & Taylor did not require the influencers to disclose that they were compensated by the company (none did).

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