Category Archives: Native Advertising

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SEC KOs Mayweather and DJ Khaled for Promoting Cryptocurrency Without Disclosures

About a year ago, the SEC issued a warning to celebrities and social influencers who promoted Initial Coin Offerings (ICOs) on social media, noting that such promoters are subject to federal securities laws. Apparently, at least two celebrities weren’t paying attention because they recently settled the SEC’s first cases regarding promoting ICOs without proper disclosures. … Continue Reading

FTC Settlement Addresses Influencers and Native Ads

Two companies and their principals have agreed to settle FTC allegations that they misled consumers by presenting paid endorsements as independent consumer reviews and ads as independent news stories. Creaxion, a PR agency, was tasked with creating a campaign to promote a client’s new mosquito repellent product around the time the press was reporting about … Continue Reading

New NAD Decision Addresses Affiliate Links

As part of its routine monitoring, the NAD requested substantiation for various statements that a BuzzFeed staff member had made about a moisturizer in one of the site’s shopping guides. The NAD’s decision in the case sheds some much-needed light on various issues related to affiliate marketing. BuzzFeed explained that the shopping guides include product … Continue Reading

2017 Recap

Most Popular Ad Law Access Posts of 2017 As reported in our Ad Law News and Views newsletter, Kelley Drye’s Advertising Law practice posted 106 updates on consumer protection trends, issues, and developments to this blog in 2017. Here are some of the most popular: New Lawsuit Highlights Risks of Using User-Generated Content FTC Announces $1.3 … Continue Reading

Announcing the Advertising and Privacy Law Webinar Series

Please join Kelley Drye in 2017 for the Advertising and Privacy Law Webinar Series. Like our annual in-person event, this series will provide engaging speakers with extensive experience and knowledge in the fields of advertising, privacy, and consumer protection. These webinars will give key updates and provide practical tips to address issues faced by counsel. … Continue Reading

Protected: 2016 Advertising and Privacy Law Summit Attendee Follow up

There is no excerpt because this is a protected post.

NAD Worries Consumers Will Jump To Wrong Conclusions Over Trampoline Reviews

A growing number of consumers read reviews before they decide to purchase a product. Because of this – as we’ve posted various times – regulators and competitors are keeping a watchful on eye reviews that seem biased or inauthentic. The latest challenge comes from a world that isn’t known for its advertising challenges: the world … Continue Reading

NAD Addresses Disclosures in Native Ads

When the FTC issued its guidance on native advertising last year, the Commission emphasized the importance of ensuring that consumers are able to distinguish ads from editorial content. If the line between the two gets blurred, companies may need to label ads as such. Where the label is placed can be critical, because the FTC … Continue Reading

Navigating Native Advertising

The FTC recently released two new guidance documents: Enforcement Policy Statement on Deceptively Formatted Advertisements and Native Advertising: A Guide for Businesses. The Policy Statement seeks to address the broad area of “advertising and promotional messages integrated into and presented as non-commercial content.”  The Business Guide more narrowly addresses native advertising, which the FTC defines … Continue Reading

FTC Announces Settlement Over Influencer Campaign for Xbox One

In January 2014, AdAge interviewed me about news reports that Machinima had hired influencers to create videos promoting Microsoft’s Xbox One gaming console and games. In a native advertising campaign, the influencers posted positive reviews, but didn’t disclose that they had been paid to do so. During the interview, we speculated about whether the FTC … Continue Reading

NAD Addresses Disclosures in Native Ads

As part of its monitoring program, the NAD recently reviewed an editorial in Shape Magazine that promoted the benefits of certain SHAPE-branded products. The NAD was concerned that promoting the products in that format could blur the line between editorial content and advertising in a way that could confuse consumers. As we’ve noted before, the … Continue Reading

FTC Attempts to Sharpen the Blurred Lines of Native Ads at Workshop

Yesterday, the FTC held a workshop to discuss legal issues surrounding the blending of ads with other content in digital media — sometimes called “native advertising” or “sponsored content.” From a marketing perspective, one benefit of this strategy is that ads may look more like content and, therefore, attract more consumer attention. But many regulators … Continue Reading

NAD Decision Holds Important Lessons for Advertising in Social Media

This week, the NAD issued an important decision involving advertising practices in social media. Here are the highlights. eSalon operates a hair-styling blog, and many posts promote the company’s products. Because the blog didn’t have eSalon branding, the NAD was concerned that consumers would view the blog as independent, despite a fine-print disclosure at the … Continue Reading
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