The FTC has issued a statement to fashion giant Lord & Taylor concerning their use of native ads and paid promotions on social media outlets. While the statement was directed specifically at this one company, the contents can be applied to anyone using this type of marketing for their businesses.
The statement comes shortly after Lord & Taylor settled charges from the FTC stating that they did not properly disclose the fact that certain posts were actually advertisements.
A partner at Michelman & Robison commented on the statement saying, “In bringing the action against a large and recognizable company such as Lord & Taylor, the FTC sent a strong message to other advertisers. This case should not just be a wakeup call to the fashion industry.”
In addition, the partner with the law firm made a brief but important comment, “Based on the FTC’s enforcement policy on these issues, the FTC wants the word ‘Advertisement’ to be used.”
As the FTC continues to crack down on social media and native advertising, it is quickly becoming clear just how important it is to use the proper phrasing to avoid the attention of the regulatory agency. Some marketers continue to try to walk the line between compliance and getting potential customers to read and be influenced by an ad. Over time, this is likely going to backfire on companies of all sizes.