Feedback on Deceptive Practices in Online Advertising Submitted to the Federal Trade Commission
The Center for Data Innovation has submitted comments to the Federal Trade Commission (FTC) advocating for the modernization of its business guidance on digital advertising. The comments propose the use of the most promising technological solutions in the updates and aim to prevent deception in digital and online advertising, while supporting the growth and development of digital advertising.
In response to the FTC's guidance on ".com Disclosures: How to Make Effective Disclosures in Digital Advertising," the Center for Data Innovation suggests that policymakers should address new advertising practices and update rules and enforcement to better reflect today’s digital advertising landscape.
The primary goal of the filing is to ensure clear, prominent, and accessible disclosures that work effectively across devices and media, maintaining consumer trust and complying with truth-in-advertising standards. The recommendations also emphasize the need to update guidance to address new advertising techniques and challenges, such as influencer marketing, AI-generated ads, and emerging digital formats.
The Center for Data Innovation further encourages the FTC to adopt a pragmatic approach that balances consumer protection with enabling innovation and flexibility for businesses in their advertising practices. This approach would ensure that disclosures are consistent with the FTC's evolving Endorsement Guides and rules on consumer reviews and testimonials, promoting transparency about material connections while adapting to rapidly changing digital marketing practices.
The updates suggested in the filing should be impactful and promote innovation, focusing on modern digital advertising practices. The Center for Data Innovation's comments are intended to help maintain transparency and honesty in digital advertising, ensuring that businesses can comply with regulations without unnecessary complexity.
The FTC's ongoing efforts to update guidance to the realities of digital advertising and technology-driven innovation align with the Center for Data Innovation's recommendations. For example, the FTC's recently updated Endorsement Guides stress the importance of disclosing material connections in a way consumers understand, reflecting modern influencer marketing scenarios. Additionally, FTC scrutiny on AI-generated advertising highlights a need for clear disclosures to avoid deceptive marketing practices.
By modernizing its business guidance on digital advertising, the FTC can promote clarity and fairness in disclosures while supporting business adaptability and growth in the digital advertising industry.
- The Center for Data Innovation's comments to the FTC advocate for incorporating the latest technological advancements, such as AI, in the modernization of digital advertising guidelines.
- The updates proposed by the Center for Data Innovation should focus on promoting transparency in digital advertising, particularly in regards to new practices like influencer marketing and AI-generated ads.
- The FTC's updated Endorsement Guides, which emphasize the importance of disclosing material connections, align with the Center for Data Innovation's recommendations for modernizing digital advertising policy.
- By adopting a pragmatic approach that balances consumer protection with enabling innovation and flexibility for businesses, the FTC can support the growth of the digital advertising industry, including fintech and finance businesses that rely heavily on digital marketing.
