FTC Warns Social Media and Video Streaming Platforms on Misleading Ads

The US Federal Trade Commission (FTC) has warned several social media and video streaming companies about their advertising practices. The FTC has identified misleading advertisements on platforms like Meta (formerly Facebook), Twitter, TikTok, and YouTube. The regulator has warned these companies to take necessary steps to ensure that advertisements on their platforms are accurate and not deceptive.

It has stated that companies must be more transparent about sponsored content and disclose all necessary information to consumers. This includes identifying sponsored content clearly and conspicuously and providing details about any financial or other incentives received for promoting the product or service. The regulator has also stressed the importance of ensuring that advertisements are truthful and not misleading. Companies have been warned against making exaggerated claims or providing incomplete product or service information.

The FTC has also raised concerns about influencer marketing, where individuals are paid to promote products or services on social media platforms. The regulator has warned that influencers must disclose their relationships with advertisers to their followers clearly and conspicuously. Failure to do so could result in penalties for the influencer and the company.

It has further advised companies to implement adequate monitoring systems to ensure that advertisements on their platforms comply with the law. Companies must have proper systems to review advertisements before they are published and take swift action against any advertisements found to be deceptive or misleading.

Have you ever encountered a misleading advertisement on social media or streaming platforms? Share your experience in the comment section below!