As publishers increasingly rely on more modern methods of native
advertising – that is, ads designed to look and feel similar
to a platform's editorial content – as a source of
revenue, the FTC has taken steps to clarify when native advertising
may cross the line and become deceptive to consumers. Recently, the
FTC published two documents that address the Commission's
position on the use of native advertising – an Enforcement
and Policy Statement on Deceptively Formatted Advertisements
("Policy Statement") and a business guide entitled
Native Advertising: A Guide for Business ("Business
Guide"). Under the Policy Statement, advertising that misleads
consumers in a material respect, including with regard to its
commercial nature, is deceptive under section 5 of the FTC Act.
Under FTC law, advertisers cannot use "deceptive door
openers" to induce consumers to view advertising content.
Thus, advertisers are responsible for ensuring that native ads are
identifiable as