Social Media Advertising and the FTC: Deception and the Architecture of Compliance

The Core Elements of an Effective Compliance Management System

In today's regulatory environment, one weak link in your compliance strategy can expose your business to serious legal, financial and reputational risk. In his latest podcast, consumer protection attorney Anthony DiResta [https://www.hklaw.com/en/professionals/d/diresta-anthony-e] delivers a clear, executive-level look at what it takes to build a compliance management system (CMS) that meets the expectations of regulators including the Federal Trade Commission, Federal Deposit Insurance Corp. and Consumer Financial Protection Bureau. He provides practical insight into the essential prongs of a CMS: board and management oversight, written policies and procedures, effective training, ongoing monitoring and audit, consumer complaint response, risk assessment and third-party oversight. With a strong emphasis on leadership, accountability and culture, this episode shows why compliance is not simply a legal obligation, but a core business function that protects the organization, strengthens decision-making and drives long-term success in the marketplace.

The FTC and Consumer Online Transactions

Online commerce may not be a new concept, but the laws governing it continue to evolve. In this episode of "Clearly Conspicuous," consumer protection attorney Anthony DiResta [https://www.hklaw.com/en/professionals/d/diresta-anthony-e] examines the history of the Federal Trade Commission's (FTC) enforcement in the e-commerce space, with a particular focus on negative option billing practices. A negative option is a billing arrangement in which silence or inaction is treated as acceptance of an offer. The FTC drafted a formal amendment to the Negative Option Rule, but it was struck down in July 2025. Despite that setback, the agency has continued to pursue enforcement actions involving false advertising, failure to disclose membership enrollment terms and unnecessarily difficult cancellation processes, all while signaling plans to revisit the rulemaking process. The agency has also emphasized that any platform providing enrollment options must also provide cancellation options that are equally easy to access and use. Mr. DiResta advises that consumers who wish to report fraud, scams or deceptive business practices can do so at reportfraud.ftc.gov [http://reportfraud.ftc.gov].

Where the FTC Stands on AI: Evidence Over Speculation

As artificial intelligence (AI) becomes embedded in daily life, the Federal Trade Commission (FTC) has signaled it has no immediate plans to implement AI-specific rules. In this episode, consumer protection attorney Anthony DiResta [https://www.hklaw.com/en/professionals/d/diresta-anthony-e]analyzes recent statements by FTC Bureau of Consumer Protection Director Chris Mufarrige and compares the agency's current enforcement outlook with past regulatory actions. According to Mr. DiResta, the FTC appears focused on targeting bad actors, rather than the technology they are using, and avoiding the pursuit of rules that could slow AI industry growth. That shift is evident in the commission's case against AI writing assistant Rytr, which alleged review generation abuses but was set aside for lack of evidence of actual consumer harm. The outcome aligns with the White House AI Action Plan's emphasis on avoiding regulatory overreach. Overall, Mr. DiResta concludes, AI use that misleads consumers or violates existing laws will still draw federal scrutiny, but the FTC is signaling a more supportive posture toward technological innovation.

FTC Consumer Review Rule Warning Letters Target a Digital Marketplace Cornerstone

Online reviews are critical to developing consumer trust, and the Federal Trade Commission (FTC) has signaled it's ready to track down anyone trying to manipulate such reviews. Consumer protection attorney Anthony DiResta [https://www.hklaw.com/en/professionals/d/diresta-anthony-e] breaks down the FTC's latest warning letters targeting potential violations of the consumer review rule, an enforcement move that puts online reviews and testimonials at the center of attention. This episode also explains what the rule covers, from fake "verified" experiences and undisclosed insider reviews to incentivized ratings and suppression of negative feedback, and why the FTC is now shifting from education to action. With civil penalties up to $50,000 per violation and industries spanning e-commerce, hospitality, beauty, wellness and technology potentially exposed, Mr. DiResta recommends businesses and their advisors take proactive compliance steps now to avoid regulatory scrutiny later. This conversation is a timely road map for companies as they audit current marketing practices and tighten incentive programs to protect consumer trust and avert formal investigations or lawsuits.

Social Media Advertising and the FTC: Deception and the Architecture of Compliance

In this episode of "Clearly Conspicuous," consumer protection attorney Anthony DiResta [https://www.hklaw.com/en/professionals/d/diresta-anthony-e] breaks down why social media advertising has become a top Federal Trade Commission (FTC) priority for 2026 and how long‑standing consumer protection rules against deception and unfairness apply to today's influencer-heavy and algorithm-driven marketing. He explains how brands use social platforms to leverage trust, reduce consumer resistance to ads and benefit from algorithmic amplification while increasing legal risk when sponsorships aren't clearly disclosed or when responsibility is spread across brands, creators, agencies and platforms. Mr. DiResta also outlines the FTC's expectations for businesses utilizing online advertising, as put forth in its Endorsement Guides. He concludes by highlighting why companies must have a real social media compliance program with policies, training, monitoring and corrective action going into 2026.