In an article on December 4, 2013, Law360 quoted Venable partner Amy Mudge from remarks she gave at a Federal Trade Commission workshop this week on native advertising – a practice where ads blend with the editorial content.
Responding to a hypothetical ad, Mudge said the content of the sponsored article, rather than the entity which produced it, is what should determine whether an explicit “advertisement” label was necessary. For example, if a company pays a consumer review site to promote a favorable review written by an independent user, the resulting content is not categorically an ad since there is no material connection between the product and the reviewer, she explained.
Mudge said the "advertisement" label is likewise unnecessary when marketers pay for content that does not specifically promote their product.
“Sometimes this stuff is an ad and sometimes it’s content. If we’re not talking about content that relates to a specific product or product attributes, I don’t think that’s something that rises to a need to disclose under Section 5" of the FTC Act, she said.