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BuzzFeed is famous for it, Facebook and Twitter embraced it, and The Atlantic got blasted for it. Native advertising may be all the rage, but if brands and publishers aren’t careful, it could trigger some regulatory repercussions, analysts say.
While ads masquerading as editorial content may be more effective than banners, they have the potential to confuse consumers. In cases where the line between editorial and advertising was blurred, the FTC has pushed TV infomercials and food marketers to adopt guidelines or risk enforcement under its authority to protect consumers from unfair or deceptive ads.