The Federal Trade Commission (FTC) updated its advertising disclosure guidelines for digital marketing in 2013. The new guidelines clarify that disclosure requirements apply across all channels and emphasize that disclosures must be clear and prominent. Advertisers must disclose sponsorships on social media using the word "sponsored" at the beginning of a post rather than abbreviations. While space is limited on some platforms, disclosures are still required and advertisers should reformulate claims if necessary to remove the need for disclosures.

1. Your LIF™style Communications Partner
FTC updates its .com advertising disclosure guidelines
OVERVIEW
In March 2013, the Federal Trade Commission revised its online or .com advertising
disclosure guidelines. Communications between brands and consumers have
dramatically changed in recent years as a result of social media and more
sophisticated mobile technologies. The FTC report addresses how disclosures statements
should appear in social, mobile and other digital channels.
The new guidelines are designed to ensure businesses and organizations do not mislead
the public on any platform, regardless of the format and space limitations. Sponsored
or ad disclosures must be clear and prominent for the consumer to identify and
understand.
KEY FINDINGS
 What has changed
o Consumer protection laws apply equally to marketers across all mediums
o Clearer understanding with regards to the inclusion of disclosures in digital
marketing channels
o Report includes details pertaining to social media and mobile
advertisements
o FTC suggests advertisers/agencies should think like a consumer and
assume that they do not read the entire website
 How to Meet the Standard
o Disclosures must be “clear and conspicuous” as always, but there is a
greater emphasis on the use of hyperlinks
o If the particular platform affects the opportunity to provide a disclosure,
that platform should not be used as a resource for advertisements that
require a disclosure
o Insert hyperlink no matter how limited the space is (i.e. Twitter)
 Call to advertisers to stop using hyperlinks for disclosures that
involve product costs or health and safety issues
 Hyperlinks that redirect to disclosures should:
o Be obvious
o Labeled appropriately
o Be consistent
o Placed within close proximity of relevant information
o Redirect consumers instantly to the disclosure on the
click-through page
o Asses effectiveness of the hyperlink
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2. o Take into account the numerous devises a consumer will use to view
information
o Design an advertisement so that consumers do not have to “scroll” down
to find the disclosure
 Use text to guide consumers to the disclosure if “scrolling” is
necessary
o Keep up-to-date with research and statistics on where consumers do and
do not look on a web pages
o Respond to any communications errors and limitations when making
disclosures
o Keep disclosures simple so consumers understand
 Using different font, size, color, etc. can help highlight disclosures
 Advertisers should not distract away from disclosure and must be
mindful of other elements on the screen
o Repeat disclosures as needed
o Use audio disclosures when making an audio claim
NEW DISCLOSURE STANDARD ON SOCIAL MEDIA
According to the new guidelines, advertisers are required to designate if a post is
“sponsored” and place the disclosure at the beginning of a message. Many marketers
commonly used “#spon” as an abbreviation of “sponsored” on Twitter to disclose, but
this practice is no longer valid under new disclosure guidelines.
Instead, a “sponsored” disclosure must be spelled out and placed at the beginning of
the message. As an alternative, the FTC recommends using “Ad:” as a shorter
alternative at the beginning of a message, especially on Twitter where space is limited.
 Appropriate Disclosures
o Place near a claim it qualifies
o Place near relevant information
o Ensure disclosures fit all screens
 Limit “scrolling” or slide over on mobile screens because it can be
missed by consumers
o Label the link to emphasize its importance and relevance
Mobile screen not zoomed Mobile Screen -zoomed
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3. BAD
Disclosure statement
should be closer to the
price and purchase
call-to-action;
Consumer should not
have to scroll.
GOOD
Move for better proximity,
label as disclaimer.
o Disclosure is included along-side the information it claims, no matter how
much space
Bad
Bad
Good
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4. o Make disclosure obvious by using different colors, fonts, styles
BAD GOOD
Mobile screen Disclosure
hard to read; easier to
background read; Good
masks use of color
colored and close to
hyperlink – not important
information
SPACE LIMITS DON’T MATTER
The new guidelines present the greatest challenges on outlets, such as Twitter and
Facebook, where communication space is extremely limited. Although the FTC
acknowledged the challenge that limited space presents to marketers, companies still
have to make necessary disclosures clearly and conspicuously.
The FTC report also states: “if a particular platform does not provide an opportunity to
make clear and conspicuous disclosures, then that platform should not be used to
disseminate advertisements that require disclosures.”
INVALID DISCLOSURES
In some cases, marketers included a link that redirected to disclosure information. The
service Cmp.ly was specifically created to assist with disclosure statements by adding
links in social media updates. The new FTC guidelines now consider this an
unacceptable practice.
In addition, every message is treated as its own entity versus as part of a conversation
and thereby requires a disclosure statement within each message where one is
required.
UNANSWERED QUESTIONS
It is unclear what the FTC expects from advertisers when using certain visual platforms
such as Twitter’s new service Vine and Facebook’s Instagram. In both cases, messages
are available on multiple spaces. Twitter’s Vine, which is limited to 6 second videos,
may be impossible to use for endorsements.
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5. The FTC guidelines state that visual disclosures should be visible for “a sufficient
duration.” On Vine, would one second be considered a sufficient duration for a
disclosure, which would constitute about 17 percent of the video’s length?
It is vague what would be considered valid or in violation of the new guidelines.
WHAT SHOULD BRANDS DO?
 Update social media policies to implement the guidelines
 Interagency cooperation is imperative and brands should ensure that all
agencies and brand teams involved are up-to-date and plans are aligned
 Review content so placement of disclosures are relevant and sufficient
 Ensure that disclosures are obvious and easy to access across all platforms and
all company social media accounts
 Before posting, ensure that all content that requires a disclaimer includes one
 Verify that disclosures are in the same body of text as the content (especially
watch out for Twitter)
 Keep disclaimers relevant and appropriate
 Do not distract fans from disclaimers
 Remember, no screen or message is exempt from the rules regardless of space
limitations
 For brands who collaborate with a spokesperson, make sure communications on
social media include appropriate disclosures wherever appropriate
IN CONCLUSION
Bottom line: Advertisers shouldn’t mislead consumers in any way regardless of the
platform or space limitations. Considering how quickly news and information spreads
through Twitter and other similar formats, it’s not a good idea to do so.
Alternatively, the FTC suggests that advertisers may wish to consider stepping back and
reformulating the ad claim to get rid of the need for a disclosure in the first place. We
whole-heartedly agree.
Be clear. Be honest. Be social.
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