RVDA Attends FTC Internet Advertising Disclosures Workshop

If you advertise or sell over the Internet, and it is hard to be competitive in this day and age without a web presence, be aware that the Federal Trade Commission (FTC) is looking at changes to modernize its online disclosures guidance to keep pace with current technology.

On May 30, RVDA’s Director of Legal & Regulatory Affairs Brett Richardson attended an FTC full-day workshop in Washington, entitled "Advertising and Privacy Disclosures in the Digital World." This workshop was intended to provide guidance to the public concerning the FTC’s advertising requirements and to solicit input from the public for updates to the FTC’s existing online advertising guidelines, "Dot Com Disclosures" (DCD).

The original FTC guidelines (downloadable here) were developed back in 2000, as the Internet was just coming of age, and before the advent of social networking and smart phones and their apps. "What a difference a decade makes. When Dot Com Disclosures was issued, who could have imagined the world we live in now?" said FTC Commissioner Maureen Ohlhausen.

The FTC is expected to formulate new guidelines and RVDA and its allies, including NADA, will actively work to make any new rules as least onerous as possible for motor vehicle dealers.  RVDA member dealers can help support these efforts through a voluntary contribution to the association's advocacy fund.   Click Here for more information.

It appears the FTC will be addressing some new areas in its upcoming guidelines. Generally speaking, the FTC will likely address two broad categories impacted by new technology: (1) what is expressed and (2) what is collected. How do traditional "clear and conspicuous" standards play out on a small mobile device such as a smartphone? How can advertisers effectively disseminate disclosures on such devices?

A greater concern expressed by the FTC and consumer groups is the development of consumer online (and sometimes offline) behavior tracking. This permits advertisers to customize specific ads to targeted consumers, which might be very profitable for companies selling this data, buta consumer privacy nightmare. There was talk about the FTC pushing industry to develop a framework for implementing do-not-track mechanisms that would allow Web users to opt out of behavioral targeting and other online data-collection across a broad network of advertising firms.

The FTC hosted several panels on various subjects related to online advertising. However, it seems that most panelists and the FTC itself would prefer to see that industry self-regulate itself by creating best practices for online disclosures.

If you have comments or questions about FTC advertising requirements, please contact RVDA’s Brett Richardson at brichardson@rvda.org.