The Federal Trade Commission is now cracking down on Internet celebrities pitching products without disclosing whether or not they’re being paid. Using familiar hashtags such as #ad, #sp, or #sponsored aren’t always enough to ensure viewers realize the content is a paid promotion, says the FTC, whose Ad Practices Division is beginning to hold advertisers responsible for compliance. The result is likely to dampen the impact of a favorite digital influencer enthusing over a specific product. Continue reading FTC Demands Clearer Disclosure for Internet Celebrity Promos

YouTube Kids, a standalone app that launched a year-and-a-half ago, has been a big success, with more than 10 billion video views annually and a position as one of the top five kid apps in the iOS and Android app stores. But although YouTube has vetted the content to be kid-appropriate, not so the advertising, which ranges from product placement to pitches for junk food. Last year, the Center for Digital Democracy and Campaign for a Commercial-Free Childhood asked the Federal Trade Commission twice to investigate. Continue reading YouTube Kids Goes Behind Paywall to Lose Inappropriate Ads

Publishers have gravitated to sponsored content — stories, videos and podcasts that mimic journalistic content — to cope with rapidly changing online advertising. The Atlantic, Slate and The New York Times are among the publications that count sponsored content as a significant portion of their revenue. Companies such as Vice and BuzzFeed have created businesses centered on focused content. But the definition of sponsored content is shifting as viewers move from news sites towards Facebook and other social media platforms. Continue reading How Sponsored Content Transforms as It Moves to Facebook

According to an SEC filing, PayPal-owned peer-to-peer payment service Venmo is under investigation by the Federal Trade Commission to determine whether the company “engaged in deceptive or unfair practices in violation of the Federal Trade Commission Act.” PayPal received a Civil Investigative Demand (CID) from the FTC on March 28. “The CID could lead to an enforcement action and/or one or more consent orders,” explains PayPal, “which may result in substantial costs, including legal fees, fines, penalties, and remediation expenses and actions, and could require us to change aspects of the manner in which we operate Venmo.” Continue reading Popular Payment Service Venmo Under Federal Investigation

Facebook has a new policy regarding so-called organic, or branded, content, now permitted to appear on Facebook Instant Articles, video and Facebook Live. Advertisers and Web publishers must display an icon to make it clear that the content — articles, videos and images — comes from an advertiser. Up until now, they have only been able to post content in ads. This is good news for BuzzFeed, Forbes and others that frequently supply sponsored content on Facebook, which also stands to reap rewards from the new policy. Continue reading Facebook’s New Policy Allows Branded Content, Not All Ads

As smartphone users turn increasingly to ad blockers, marketers are getting their messages out by paying Internet influencers under the table to promote their products as personal reviews and commentary. For some time, the practice was beyond the reach of the Federal Trade Commission, which made sure paid endorsements were advertised as such in television, newspapers and magazines. With new guideline changes initiated in 2015, however, the FTC is now going after violators, just reaching a settlement with video network Machinima. Continue reading FTC Goes After Paid Endorsements Presented as Commentary

In a shift in the status quo, the Federal Communications Commission will take over the Federal Trade Commission’s power to regulate Internet access providers regarding customer privacy. The FCC already proposes new rules to shield users from unwanted use of their Internet data. Impacted cable and wireless firms are protesting that the rules would target them unfairly, putting them at a disadvantage against Internet service firms such as Facebook and Google, which will continue to be regulated by the FTC. Continue reading FCC Will Regulate Cable, Wireless Companies on Data Privacy

Clear Channel Outdoor Americas inked a deal with AT&T and other companies to enable it to track people, via their mobile phones, who pass its tens of thousands of billboards across the United States. Called RADAR, the new service will, says Clear Channel Outdoor, give advertisers better tools to measure the effectiveness of billboard advertising. RADAR will be offered in Clear Channel Outdoor’s top 11 markets, which includes Los Angeles and New York, with availability across the country later this year. Continue reading Clear Channel Outdoor Billboards to Track, Identify Passersby

Consumer taste, technology development are two of the forces impacting the growth and direction of the Internet of Things. A group of experts focused on policy issues surrounding IoT’s evolution at CES. Moderator Alan Davidson, director of digital economy for the Department of Commerce, reports that, about seven years ago, the number of Internet-connected things surpassed the number of people on the planet. “By 2025, this is an area that will have an economic impact of $4 to $11 trillion on the global economy,” he said. Continue reading The Internet of Things Brings Benefits, Risks and Public Policy

Prompted by the Center for Democracy and Technology (CDT), the Federal Trade Commission has scheduled a workshop to discuss cross-device tracking technologies. Using ultrasonic, inaudible pitches, the technology allows a user’s online behavior to be tracked across phones, TVs, tablets and computers. The pitches can be — and are already — embedded in TV commercials, ads in a computer browser and apps. The consumer is not made aware that the tracking technology has been activated and there is no way to opt out. Continue reading FTC Studies Privacy Issues Inherent in Cross-Device Tracking

Brussels, where the European Union is primarily based, is becoming a mecca for U.S. tech firms to plead their cases. That’s because the EU has taken a hard stance on issues of antitrust and privacy among others, becoming the world’s first regulator to confront Google on antitrust charges… twice. The unintended result is that U.S. tech companies are now hiring full-time lobbyists to protect their interests. And aggrieved U.S. firms go there to lodge complaints that might otherwise have gone to the Federal Trade Commission. Continue reading EU Regulators Gain Regulating Clout With U.S. Tech Companies

Facebook just filed for a patent that tracks how users are networked together. The patent can be used to prevent people from sending spam to those they’re not legitimately connected with. But the patent filing also describes a less savory possibility: that banks and other lenders could examine the credit scores of those in your network when deciding whether or not to make a loan to you. For some experts, at least, this conjures up visions of housing discrimination, aimed at the poor and people of color. Continue reading Could Facebook Patent Be Used to Approve or Deny Loans?

The Third U.S. Circuit Court of Appeals ruled that the Federal Trade Commission can advance its lawsuit against Wyndham Worldwide, which the FTC holds partially culpable for theft of online data three times between 2008 and 2010, for a total of over 619,000 credit- and debit-card numbers. Since Congress has yet to pass sweeping legislation on data security, the FTC has stepped in, so far instigating 50 additional data-security cases based on its mandate to act against unfair and deceptive business practices. Continue reading FTC Has Authority Over Corporate Hacks, says Appeals Court

As podcasts continue to grow in popularity, more journalists and major media brands are turning to the format. Behind much of the format’s growth is the embrace of native advertising — ads that reflect the tone of the podcast as hosts discuss products during their show or even report on brands as ad spots. Blurring the line between advertising and news has led to a clash between those coming from public radio and those coming from commercial radio. Regardless, evidence suggests that native advertisements are effective. Continue reading Podcasting Embraces Native Ads, Blends Story and Sponsors

Antitrust regulators are reportedly taking a preliminary look at whether Apple’s business model for selling streaming music apps may be illegal under current antitrust law. While the company now has its own music streaming service, Apple also takes a 30 percent cut of in-app purchases through its App Store for competing services such as Jango, Rhapsody and Spotify. According to industry sources, the Federal Trade Commission has not announced a formal investigation, but has started to look into the issue by meeting with concerned parties. Continue reading FTC Examines Apple’s 30 Percent Charge for Rival Music Apps