Advertising Law Blog

In the article “Under the Influence” published in Contently on April 20^th, 2016, following the FTC’s Lord & Taylor settlement focusing on native advertisements and influencers, Lord & Taylor reached a settlement with the Free Trade Commission over charges that the native advertisements that were published in a fashion magazine as well as by prominent social media personalities, failed to include a disclosure stating that the influencer had received some form of compensation. “The FTC and other regulatory authorities are very concerned about influencer and native advertising,” Lustigman said. “Because the message is now coming from a third party, regulators want to make sure that consumers know that there is business relationship between the parties so that they can evaluate the message with that in mind.” Regarding the future of the industry posed with further regulations by the FTC, Lustigman concluded, “I do think that the industry will adapt…and those who embrace their obligations will ultimately succeed.”