As we have written before, NAD is using its monitoring of advertising function to bring cases examining native advertising.  And on the eve of the FTC’s upcoming workshop on native advertising the NAD has made its views in this area known again in another monitoring case.

While much of what NAD does is involves competitive, or an occasional consumer, challenge, it also monitors ads to bring its own cases.  Often it has brought cases in product categories like cosmetics where there are relatively fewer competitive disputes.  We have seen this, for example, with the cases NAD has brought against makers of mascara looking at whether celebrity pictures are literal product demonstrations.

In eSalon, NAD expands upon the views on native advertising it expressed in Qualcomm.  Read together these two decisions suggest that NAD is setting a high standard for disclosures.  It will be interesting to see where the FTC eventually comes out on many of these same issues.  NAD’s summary headline perhaps says it best: “Advertisers are required to identify a message as advertising when it appears in a context that consumers may reasonably understand to be editorial in content.”
Continue Reading NAD Again Finds Colorable Concerns Regarding Disclosure Obligations in Social Media

There is much anticipation for the FTC’s December 4 workshop on native advertising.  We learned that while the FTC was considering delaying this workshop several weeks due to the recent shutdown, they are planning to go forward as scheduled.  Advertisers looking to move beyond a mundane brand webpage, Facebook page, and the banner ad and who want to integrate their brand and marketing message with quality digital content are wrestling with when and how they need to disclose the fact that their brand is sponsoring this “native advertising”.  Some use this term to apply to sponsored tweets, advertorials and search ads or other sponsored content.  Others such as AdAge say these forms of advertising look like the web content on sites where they are found but do not really weave the brand and the content – the higher goal of native advertising.  And the disclosure obligations likely differ depending on the definition.
Continue Reading Advertisers Going Native May Be Restless for FTC Input but NAD Gives Some Guidance

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