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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 PolicyPaul.Boyle@naa.org571-366-1150

Will Government Regulators Derail Native Advertising?