FTC Brings Action Against PR Agency and Publisher for Misleading Online Endorsements and Deceptively Formatted Advertising

This report was originally published by Davis & Gilbert.

Below is a Davis & Gilbert Advertising, Marketing & Promotions Alert written by Allison Fitzpatrick, Partner, and Paavana Kumar, Associate, discussing the FTC’s settlement with a public relations agency and its chief executive officer, as well as a magazine publisher and its sole owner, alleging claims that they misrepresented paid endorsements as independent consumer opinions and commercial advertising as independent journalistic content.

The FTC is, once again, making it clear that all involved parties have a duty to comply with the FTC’s rules regarding paid endorsements and native advertising practices – and that it is equally willing to take action against agencies and publishers when they violate these rules. Failing to comply with these FTC requirements could expose an agency, the associated publisher, and even their owners, officers and directors in their individual capacities, to significant liability.