Online advertisement watchdog files FTC complaint against X for unlabeled ads

In September, X faced an investigation for running ads without clear labels on its platform. This issue, which has been ongoing since then, has now reached the attention of the Federal Trade Commission (FTC). Independent nonprofit watchdog organisation Check My Ads has filed a formal complaint, urging the FTC to investigate X's advertising practices.

Check My Ads highlights X's lack of disclosure about ads, arguing it misleads users into thinking content is organic when it's paid. This misrepresentation not only destroys trust but also creates opportunities for scams. The complaint stresses that X fails to adequately disclose ads, misrepresenting methods used for user targeting and third-party ad targeting.

Confusing advertising labels & broken links

The complaint points out inconsistencies in X's advertising labels. While promotional materials indicate a "Promoted" label, users often encounter ads simply labelled "Ad" or even without any label. TechCrunch's tests in September revealed unlabeled ads from unfamiliar accounts. Explainer links about ad targeting, when present, were found to be non-functional in some cases.

FTC investigation

Check My Ads calls for an FTC investigation into X's advertising practices, emphasising the need for transparency. The complaint underlines that misrepresenting ads as organic content can deceive users and potentially lead to fraudulent activities.

The confusion around labelling and broken links adds to concerns about the platform's commitment to transparent and ethical advertising practices.