FTC Policy Statement Targets Native Advertising

This Tuesday, the Federal Trade Commission (the "FTC" or "Commission") issued an Enforcement Policy Statement on Deceptively Formatted Advertisements, explaining that certain "native" advertising formats in digital media may deceive consumers by blurring the distinction between advertising and non-commercial content.

How will this FTC Policy Statement affect the native advertising industry?

Commission Takes Aim at Native Advertising

The FTC's recent Policy Statement takes issue with certain native advertising formats and techniques that are closely integrated with and less distinguishable from regular content. Native advertising has become increasingly popular in recent years due to its success in capturing the attention and clicks of ad-avoiding consumers. According to the Commission, many native advertising campaigns may mislead reasonable consumers as to their nature or source, in violation of the deceptive advertising provisions of the FTC Act.