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ARTICLE · 30 MARCH 2016

FTC Brings First Action Alleging Deceptive Native Advertising Practices

Davis+Gilbert LLP
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In early 2015, Lord & Taylor launched a comprehensive social media campaign to promote its new Design Lab collection, a private-label clothing line targeted to women between 18 and 35 years old.

United StatesMedia, Telecoms, IT, Entertainment
Ronald R. Urbach
Ronald R. Urbach
Allison Fitzpatrick
Allison Fitzpatrick
Paavana Kumar
Paavana Kumar
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Just months after issuing an Enforcement Policy Statement on Deceptively Formatted Advertisements and an accompanying Native Advertising Guide for Businesses (to read a previous D&G Alert on this topic, please click here), the Federal Trade Commission (FTC) brought its first action against an advertiser (Lord & Taylor) involving allegations that it deceived consumers with its misleading native advertisements.

The FTC also claimed that Lord & Taylor violated the FTC Endorsement Guides by paying influencers to post photos of themselves wearing the retailer's dress on social media without disclosing that they were paid by the retailer.

Allegations

In early 2015, Lord & Taylor launched a comprehensive social media campaign to promote its new Design Lab collection, a private-label clothing line targeted to women between 18 and 35 years old. The retailer's market plan included the dissemination and placement of branded blog posts, photos, video uploads, native

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