Washington, D.C.—The Federal Trade Commission has urged advertisers and publishers that show native ads to ensure that online viewers know they are seeing ads and not editorial articles.
In a public hearing on Wednesday, FTC Chairwoman Edith Ramirez said that native ads, which resemble surrounding editorial content but are actually sponsored and developed by advertisers, should be more clearly labeled. She also indicated, however, that the FTC was not considering any regulations to address the issue.
“While native advertising may certainly bring some benefits to consumers, it has to be done lawfully,” Ramirez, as reported by Reuters, said. “By presenting ads that resemble editorial content, an advertiser risks implying, deceptively, that the information comes from a nonbiased source.”