Federal Guidelines For Online Advertising

The Federal Trade Commission (FTC) governs the use of online advertising in an effort to protect consumers from false and deceptive advertising. Online advertising has become profitable with search engine providing a forum for advertisers for the use of paid links. The commercial practices of search engines have come under scrutiny and they have received a warning from the FTC over the disclosure of these paid advertisements and the fact that the rankings have been secured by financial benefits. Online advertisements has to be adequately and prominently disclosed to avoid federal regulators.

The following questions have been addressed in this article:

Is online advertising protected by the same regulations as advertising of other media?
How are the disclosures examined to determine whether they are sufficient?
How is a disclosure made clear and conspicuously?
What about the use of hyperlinks to satisfy sufficient disclosures?
Are the use of direct solicitation and written and printed materials governed by the FTC?

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