Takeaways from a Panel with the FTC and NAD | BakerHostetler

Takeaways from a Panel with the FTC and NAD | BakerHostetler

In addition to authorized evaluation, legislative developments, and some normal whimsy, on this weblog we spotlight commentary from regulators and business figures in the promoting legislation house. We had the alternative to listen to from a number of such people final week at the ANA Masters of Advertising Law Conference.

One panel featured the Associate Director of Advertising Practices at the Federal Trade Commission, Serena Viswanathan, and the Vice President for the National Advertising Division of BBB National Programs, Laura Brett. Ms. Viswanathan disclosed as a part of the presentation – and we might be remiss to not embody the similar right here – that the opinions expressed have been her personal and not these of the FTC.

The moderators on the panel have been our very personal Amy Mudge and Daniel Kaufman. Amy and Daniel led their celeb visitors via a dialogue of a number of scorching matters, and we’ve highlighted a few of the most notable takeaways beneath.

Blurred or Stealth Advertising

What is it? When promoting is included in media or leisure with out a clear delineation between the advert and the content material.

What did the specialists say?

Ms. Brett famous that the NAD is actively seeking to convey monitoring circumstances on this space and that if advertisers are utilizing affiliate hyperlinks, they need to have a look at earlier NAD choices. In one case, the NAD discovered the use of affiliate hyperlinks weren’t “promoting” as a result of the editorial workforce really useful the product(s) unbiased of any enter from the enterprise workforce on online marketing. Ms. Brett additionally famous that the NAD believes influencer advertising to youngsters is an underserved space.

Ms. Viswanathan highlighted the FTC’s “Protecting Kids from Stealth Advertising in Digital Media” workshop and how the FTC’s exercise on this space is in response to the blurring of promoting and content material in locations the place youngsters are on-line. Best apply if focusing on a youthful viewers is to not blur promoting and content material in any respect. For extra, see Amy’s weblog publish on the FTC’s employees report.

Junk Fees

What are they? Fees added on to a services or products which are usually disclosed late in the buy course of.

Ms. Viswanathan famous that whereas the FTC has been involved with misleading payment practices for a very long time, business and shoppers alike have complained to the FTC about the abundance of charges in the market presently. The FTC not too long ago proposed a rule on junk charges, and Ms. Viswanathan inspired business to offer feedback to the FTC on how they could be affected. She particularly famous that to the extent feedback embody information and financial evaluation, that’s useful. For extra on the junk payment rule, see my weblog publish on the announcement.

Aspirational Claims

What are they? Aspirational claims are statements about what a firm intends to do, mostly used for environmental, social, and company governance (ESG) points.

Ms. Brett emphasised that aspirational claims should be substantiated. The bar for substantiation is decrease than for different claims, however there nonetheless should be proof that the purpose is achievable. And if the information change such that the declare is not supported, then the declare wants to alter too. The NAD has issued a number of choices on this space for advertisers looking for further steerage.

Social Media

What is it? You know this one.

Ms. Viswanathan mentioned the FTC’s curiosity in platforms moderating promoting to scale back scams and fraud. The FTC issued orders beneath its Section 6(b) authority earlier this 12 months looking for info on how platforms display screen for deceptive adverts – finally, the FTC needs practices in place to scale back the quantity of paid promoting for fraud on-line.

Other Highlights

The NAD and FTC consider that causal claims between a product and human well being results typically require randomized and managed human scientific trials.

Don’t acquire critiques in a approach that limits responses to people who had a constructive expertise.

If AI instruments incorporate bias, then the FTC takes the place that there’s shopper hurt.

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About the Author: Amanda