The Federal Trade Commission’s approach to regulating advertising could look very different under President-elect Donald Trump. Practitioners are expecting the agency to bring fewer enforcement actions related to unfair business practices and to focus on cases where there is a clear-cut harm to consumers.
While perhaps best known as an antitrust cop, the FTC doesn’t just bust monopolies. Under President Barack Obama, the agency stepped up its enforcement of consumer protection laws, particularly truth-in-advertising laws. It has warned retailers that they need to disclose whether they are paying social media celebrities to tout their products—an increasingly common form of “native advertising.” The FTC also asserted itself as the new cybersecurity cop on the block, accusing companies like Wyndham Hotels and Resorts of misleading the public about their commitment to data security.
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