FTC Released a Guide for Dot Com Disclosures -Information About Online Advertising (May 2000)

FTC Released a Guide for Dot Com Disclosures -Information About Online Advertising (May 2000)

In May of 2000, the FTC released a Dot Com Disclosures Guide outlines critical principles and practical advice for businesses to ensure that their online advertising complies with federal consumer protection laws. Here’s a summary of its key points:

The guide reinforces that the same consumer protection laws applicable to traditional advertising also apply to online platforms. Under the FTC Act, unfair or deceptive practices in online advertising, marketing, and sales are prohibited. Businesses must ensure transparency and provide accurate representations of their products and services to build consumer trust and avoid penalties.

 

Clear and Conspicuous Disclosures. Disclosures are a cornerstone of truthful online advertising. If a claim in an ad requires clarification to avoid misleading consumers, the necessary information must be presented clearly and conspicuously. Factors to consider include:

• Proximity. Place disclosures near the relevant claim to ensure consumers connect the two.

• Prominence. Use noticeable size, color, and design to highlight the disclosure.

• Language. Use plain and understandable language to communicate the message effectively to the intended audience.

• Distractions. Avoid using visuals, audio, or other elements that overshadow or obscure the disclosure.

The guide also encourages creative methods to integrate disclosures within multimedia formats like videos or banners while maintaining clarity.

 

Use of Hyperlinks. When disclosures are lengthy, hyperlinks may be used, but the guide stresses best practices:

• Hyperlinks should have clear, descriptive labels that encourage users to click for more information.

• The click-through page must immediately display the full disclosure in a prominent and easily understandable format.

• Advertisers should monitor click-through rates to ensure effectiveness and adjust their strategies if necessary.

 

Special Considerations for Digital Platforms. Given the variability of screen sizes, browser formats, and user behaviors, businesses must account for technical and visual differences to ensure disclosures remain accessible. For example:

• Use visual or textual cues to prompt scrolling when a disclosure is placed below the fold.

• Ensure disclosures work across all devices, including those with limited display capabilities.

 

Timing and Placement. Disclosures must appear before a consumer makes a purchase or incurs a financial obligation. For interactive elements like shopping carts or order buttons, disclosures should be presented prominently during the decision-making process.

 

The FTC emphasizes that trust in the digital marketplace hinges on transparency and fairness. Advertisers are urged to review their online ads thoroughly, considering how consumers interpret and interact with them. Businesses that fail to meet these standards risk not only consumer backlash but also enforcement actions from the FTC.

 

For more information, see here:  https://www.ftc.gov/tips-advice/business-center/guidance/com-disclosures-how-make-effective-disclosures-digital

 

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