7/10/2014 1 LMA / BIA Kelsey Native Advertising Summit July 9 2014 July 9, 2014 ISN’T THIS A NEW ISSUE? ISSUE? NO! Will Government Regulators Derail Native Advertising?
Jan 21, 2015
7/10/2014
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LMA / BIA KelseyNative Advertising Summit
July 9 2014July 9, 2014
ISN’T THIS A NEW ISSUE?ISSUE?
NO!
Will Government Regulators Derail Native Advertising?
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FTC has always been concerned about “blurred lines” between advertisements and editorial contentbetween advertisements and editorial content
Uses enforcement authority under Section 5 of the Federal Trade Commission Act
Will Government Regulators Derail Native Advertising?
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What is a deceptive act or practice?
FTC Deception Policy Statement, 103 F.T.C. 110, 174 (1984)
It’s likely to mislead consumers
Who are acting reasonably under the circumstances, and
It would be material to their decision to buy or use the product.
FTC Advisory Opinion on ads in news format
73. F.T.C 1307 (1968)
Will Government Regulators Derail Native Advertising?
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FTC targets 10 operators of fake news sites for making deceptive claims about acai berry weight loss
(Apr. 19, 2011)
C i h ld “ id l f t t th t
FTC’s Bureau of Consumer Protection Letter to Search Engines
(June 2013)
Companies should “consider several factors to ensure that any labels and visual cues used are sufficiently noticeable and understandable to consumers.”
Will Government Regulators Derail Native Advertising?
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Federal Trade Commission WorkshopDecember 2013
Agency wanted to highlight the need for transparency for the consumer
What the FTC heard?Transparency maintains trust for the publisher and the
brandThere should not be a prescribed method for identifying
native advertisingIndustry will develop best practicesIndustry will develop best practices
Self-regulation in publishing industry
Interactive Advertising BureauUse language that conveys advertising has been paid forUse language that conveys advertising has been paid for
Be large and visible for consumer to notice
American Society of Magazine EditorsShould be prominently labeled as advertising
Source of content should be acknowledged
Should include prominent statement or “What’s This?” rollover at the top of the ad unit
Newspaper Association of AmericaNAA / API worked with FTC prior to workshop
“Whit P ” t ti f i i t f“White Paper” on tactics for increasing transparency for the consumer
Will Government Regulators Derail Native Advertising?
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Examples of increased transparency around native advertising
Publisher Branding
Some publishers have formal sponsored content programs, sometimes with a dedicated department or assigned staff.
Will Government Regulators Derail Native Advertising?
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Textual Disclosure
Many newspapers use textual disclosures to label content that is paid for by an advertiser.
Advertiser Logo
Several publications use the advertiser’s logo to create greater transparency for the consumer.
Will Government Regulators Derail Native Advertising?
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Bold Coloring
Several publications use coloring effects to offset the sponsored content from the original content to provide transparency for the consumer.
Shading
Some publishers use shading to offset their sponsored content from the rest of their editorial content.
Will Government Regulators Derail Native Advertising?
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FTC looking for the industry to do the right thing
Resources
American Press Institute, “Understanding the Rise of Sponsored Content” (Nov. 2013), available at: http://www.americanpressinstitute.org/publications/reports/white-papers/understanding-rise-sponsored-content/
Federal Trade Commission, “Blurred Lines: Advertising or Content? An FTC Workshop on Native Advertising” (Dec 4 2013) available at:Workshop on Native Advertising” (Dec. 4, 2013), available at: http://www.ftc.gov/news-events/events-calendar/2013/12/blurred-lines-advertising-or-content-ftc-workshop-native
“IAB Native Advertising Playbook” (Dec.4, 2013), available at: http://www.iab.net/nativeadvertising
“ASME Guidelines for Editors and Publishers” (May 2014), available at: http://www.magazine.org/asme/editorial-guidelines
Will Government Regulators Derail Native Advertising?
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Questions?
Contact: Paul Boyle, NAA Senior VP/ Public [email protected]
Will Government Regulators Derail Native Advertising?