The US Federal Trade Commission is clamping down on native advertising and the use of endorsements on social media. This article, first published in Managing IP, outlines a settlement which provides a number of lessons for brand owners.
As advertisers are relying more heavily on social media platforms to create buzz around new products and services, a settlement with the Federal Trade Commission has called cutting edge promotional techniques into question. In 2016, the FTC announced a settlement with department store chain Lord & Taylor for its allegedly deceptive use of native advertising in a multi-pronged online and social media campaign. This article explores how advertisers use social media and native advertising to reach consumers and how the Lord & Taylor settlement can assist advertisers as they consider how to structure social media advertising campaigns so as not to prompt the FTC to “dislike” the campaign – and bring an action.
Read the full article, originally published by Managing Intellectual Property here