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FTC Issues a Friendly Warning on Certain Types of Online Advertising

Do you know how much of the content on your favorite digital news site or print magazine is advertising? Probably more than you think.

Native advertising- is specifically designed to not look like traditional advertising. These advertisements are paid or sponsored content by a brand or advertiser designed to look and feel similar to a platform's editorial content. The Federal Trade Commission states that this new form of advertising may violate Section 5 of the Federal Trade Commission Act, which prohibits "unfair or deceptive acts or practices," including advertising.

This article examines the FTC's "Enforcement Policy Statement on Deceptively Formatted Advertisements" as it relates to native advertising.