NAA Fights Ad Blockers with FTC Complaint and Investigation Request

The Newspaper Association of America (NAA) is stepping up its game to fight ad blockers. The NAA, a nonprofit organization representing the interests of

The Newspaper Association of America (NAA) is stepping up its game to fight ad blockers. The NAA, a nonprofit organization representing the interests of nearly 2,000 news publishers in the U.S. and Canada, filed a Complaint and Request for Investigation of Deceptive Ad-Blocking Practices with the Federal Trade Commission (FTC) last Thursday, alleging that certain ad blocking practices violate Section 5 of the Federal Trade Commission Act which prohibits unfair and deceptive trade practices and unfair methods of competition.

The complaint defines ad blocking technologies as browser plug-ins and mobile applications that give consumers access to full editorial content, sometimes bypassing paywalls, while blocking advertising that publishers use to offset the cost of producing content.

NAA Fights Ad Blockers with FTC Complaint and Investigation Request

Source: YouTube

“Ad blockers undermine the ability of publishers to continue to provide free or reduced-price content on the Internet because they undercut publishers’ ability to finance enterprise journalism, and they threaten the livelihood of journalists and other content creators. These free-riding technologies are a clear and present danger to an ecosystem that has created a vibrant, content-filled Internet for the American public,” said the complaint.

Specifically, the 17-page complaintasks the FTC to investigate the following deceptive trade practices:

  1. The use of “paid whitelisting” by Adblock Plus
  2. Substitution of ad blockers’ own advertising for blocked ads, false claims that subscription services prevent publisher harm, and the evasion of metered subscription systems.

“Newspapers recognize that ad blocking technology is responding to a consumer demand, and publishers are working diligently to improve the ad experience for consumers. However, some ad blocking firms have implemented ad blocking business models that deceive consumers. These practices undercut our members’ ability to provide a satisfying customer experience because the consumer is not receiving the whole truth,” said NAA President & CEO David Chavern in the press release.

“The deceptive activities of these ad blockers undercut publishers’ ability to innovate and respond to customer demands, and preempt publishers’ efforts to communicate with consumers about the importance of advertising or alternative mechanisms for supporting high-quality journalism content,” added Chavern.

Should the FTC agree that the practices alleged in the complaint are deceptive and unfair, it asks for relief including:

  1. Requiring ad blockers engaged in “paid whitelisting” to end their programs or to cease misrepresentation of these service to consumers;
  2. Requiring ad blockers to discontinue ad substitution;
  3. Requiring ad blockers that claim they make publishers whole to stop making deceptive and misleading statements to consumers;
  4. Preventing ad blockers from evading metered subscription services and paywalls; and
  5. Providing any other relief the FTC feels is appropriate and necessary.

Insider Take:

In a joint report produced by PageFair and Adobe in 2015, publishers lost $21.8 billion in revenue last year because of ad blocking, and that total is expected to nearly double in 2016 to $41.4 billion, but the practice continues. Consumers find online ads to be intrusive and annoying, and as a result, are blocking 11.7 percent of all ads, according to a recent survey by Optimal.com and Wells Fargo, quoted by the Washington Post.

Publishers like the Post are trying to find ways to combat the problem, and the IAB has proposed they use their DEAL approach to figure out how to best handle them. As they fight against the ad blockers, the NAA is going to bad for the publishing industry – and consumers – by saying “enough is enough.”

The bottom line is that consumers are tired of ads, and they don’t want to be tracked online, but publishers need the advertising revenue to support the work they do. The opposing sides must find a fair and reasonable compromise. By drawing attention to the issue with its rallying cry on behalf of its members, the NAA has made this a legal issue that cannot be ignored. That isn’t a solution, but it is a step in the right direction.

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