FTC Issues Orders to Social Media Companies on Paid Commercial Ad Practices

By Denny Jacob

The Federal Trade Commission on Thursday said it issued orders to eight companies, including Meta Platforms Inc. and Snap Inc., seeking information on how they scrutinize and restrict paid commercial advertising that is deceptive or exposes consumers to fraud.

The orders were also sent to Instagram, which is owned by Facebook parent Meta, Alphabet Inc.-owned YouTube, TikTok Inc., Twitter Inc., Pinterest Inc. and Twitch Interactive Inc.

The orders, which seek information from 2019 to 2023, would collect information about standards and policies related to paid commercial ads, including screening and monitoring for compliance, among other requirements.

"This study will help the FTC ensure that social media and video streaming companies are doing everything they can to keep scammers and deceptive ads off their platforms," said Samuel Levine, Director of the FTC's Bureau of Consumer Protection.

Write to Denny Jacob at denny.jacob@wsj.com

(END) Dow Jones Newswires

March 16, 2023 15:07 ET (19:07 GMT)

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