“Native Advertising” Practices Illegal, Confusing

The increased use of advertisements that are indistinguishable from editorial content on a website – known as "native advertising" or “sponsored content” -- may be illegal in some instances, according to the US Federal Trade Commission. Seventy-three percent of online publishers use native advertising, while 41 percent of brands and one-third of advertising agencies use it. The commission recently held a workshop to determine whether it should issue additional guidance on the issue to help both advertisers and publishers avoid enforcement actions. The net result: "This has raised more questions than it answered," Mary Engle, the FTC's associate director of the advertising practices division, said. The industry is being proactive. Trade groups including the American Society of Magazine Editors have released guidelines for native advertising practices. (Reuters)(Adweek)(The New York Times)
 

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