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.”
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