FTC Research Indicates Disclosures Help Consumers Recognize Ads

The FTC has long stated that consumers should be able to recognize an ad as an ad. And if disclosures are necessary to ensure that consumers will recognize that an ad is an ad, then those disclosures must be made in a way that ensures that consumers can understand them.

The FTC believes ad recognition is particularly challenging for consumers viewing search and native advertising. The agency's 2013 letter to search engines, Native Advertising Guidance and enforcement against a major retailer all highlight its concern with techniques commonly used by advertisers today. In 2014-2015, the FTC commissioned exploratory research to gain a better understanding as to what consumers actually do see and understand when looking at native and search ads. The report released by FTC staff last month, Blurred Lines: An Exploration of Consumers' Advertising Recognition in the Contexts of Search Engines and Native Advertising: A Federal Trade Commission Staff Report, summarizes