The FTC, in recent staff statements, has sought to clarify advertisers’ and publishers’ obligations regarding native advertising and social media promotions, particularly regarding when and how to clarify to readers that a message is promotional and that the speaker has a material connection to the brand mentioned in the content. Further, the FTC has announced that in a departure from its historical approach to publisher liability, it will be holding publishers who are involved in creating native advertising as equally liable as the advertiser since they are going beyond mere distribution by creating or co-creating the content. This new guidance was in the form of new FAQs published on the FTC’s website and in a recent speech by a senior FTC lawyer to an ad industry trade conference.
On June 1, 2015, the Federal Trade Commission (FTC) staff updated its Frequently Asked Questions (FAQs) guidance to the FTC’s 2009 revised Endorsement Guidelines (Guidelines). The FTC’s latest update provides helpful comment on how to apply the agency’s endorsement guideline standards to evolving forms of digital marketing and promotion.