FTC Provides Guidance To Search Engines On Advertising Practices

The Federal Trade Commission sent letters to search engines regarding advertising practices on their websites.  The FTC noted that they are having trouble telling the difference between search results and ads.  As a result, the search engines need to comply with FTC rules.  The letters update the previous guidance the FTC offered for digital advertisers.

In the letter, the FTC noted that consumers ordinarily expect that natural search results included and ranked based on relevance to a search query, not based on payment from a third party.

We will ignore the fact that these “consumers” are typically using a free service and get to the broad strokes of the FTC’s guidance.  Basically, the FTC wants to make sure that advertising is sistinguishable from natural results.  This applies regardless of the type of device the “customer” uses to access the search engine.

Among the lucky recipients of the letter are AOL, Ask.com, Bing, Blekko, DuckDuckGo,  Google, and Yahoo!, as well as 17 of the most heavily trafficked search engines that specialize in the areas of shopping, travel, and local  business, and that display advertisements to consumers.

SEC To Vote On Rules For General Solicitation In Some Private Offerings

It has been quite a while since the SEC proposed rules relaxing the prohibition of general solicitation in Rule 506 and Rule 144A offerings.  The criticism to the proposed rules flowed from issuer and investor advocate groups for a variety of reasons.  These rules are required by Section 201(a) of the JOBS Act.

According to WSJ MarketWatch, the SEC will vote on the proposal on July 10.

At this point, it may be worth going back through the proposal to be ready for the new rules.  Issuers will be anxious to begin advertising.  However, the proposal includes onerous requirements for verifying investor eligibility.  We look forward to seeing what changes, if any, the SEC plans to make to the proposed rules.