Ad Watchdog Files FTC Complaint Against X for Deceptive Ad Practices
Check My Ads alleges that X's lack of clear ad disclosure misleads users and violates federal regulations, contributing to a significant loss in advertising revenue.
- Ad watchdog Check My Ads has filed a complaint with the Federal Trade Commission (FTC) against X, formerly Twitter, for not clearly disclosing ads.
- X has been running unlabeled ads on its platform, misleading users into thinking the content is organic, and potentially creating an environment ripe for scams.
- The complaint alleges that X's actions violate Section 5 of the Federal Trade Commission Act and the 2022 Stipulated Order with the FTC, which saw then-Twitter pay a $150 million fine for deceptively using users' information for advertising purposes.
- Check My Ads is urging the FTC to investigate X's ad practices, fine the company for these violations, and seek an injunction that requires X to clearly label all advertisements.
- Since Elon Musk's takeover of the company, X has reportedly lost 60 percent of its advertising revenue and its valuation has decreased by 56% over the last 12 months.