If Publishers Fail to Self-Regulate Native Ads, FTC May Step In

Native advertising may be all the rage, but if brands and publishers aren’t careful, it could trigger some regulatory repercussions, analysts say. While ads masquerading as editorial content may be more effective than banners, they have the potential to confuse consumers.

In cases where the line between editorial and advertising was blurred, the Federal Trade Commission has pushed TV infomercials and food marketers to adopt guidelines or risk enforcement under its authority to protect consumers from unfair or deceptive ads. “Conventions need to be developed, like they have for newspapers and infomercials on TV,” said C. Lee Peeler, CEO of the Advertising Self-Regulatory Council, a group that establishes guidelines for advertisers so they don’t run afoul of regulators.