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All social media platforms use unique labels to distinguish ads from regular content. However, X, formerly known as Twitter, has reportedly removed labels from ads. This might result in a legal dispute for the company.
As reported by TechCrunch, over the past few days, users have published many examples of this error, in which the ad label has been removed from the content. These labels could help users to identify ads from native content. Now, the only way to tell if you’re watching an ad in your Following feed is by clicking on the “…” menu in the tweet and finding related options to the advertisement.
Unlabeled ads appear in X user’s feed
It remains to be seen if this is just an error or a new change made to the platform by Elon Musk. X doesn’t have a communications department and doesn’t respond to any requests from news outlets. Appearing unlabeled ads in users’ feeds might make them think X is suggesting content to them.
According to the FTC, the influencer should disclose its financial, employment, personal, or family relationship with a brand. The agency further adds that advertisements must be truthful, cannot be deceptive or unfair, and must be evidence-based.
X’s recent change might violate FTC regulations and result in an investigation. The agency might conclude that X has employed deceptive business tactics and tried to increase the engagement of ads by removing the label. Nandini Jammi, co-founder of the watchdog group Check My Ads, asks users to report the cases to them.
Following Elon Musk’s takeover, X’s (Twitter) advertising business has plummeted, and it’s not showing any sign of recovering. The billionaire has recently claimed the platform’s ad revenue has dropped by 60%. Advertisers claim X has become a less safe platform under Musk as he laid off most content moderators and two top executives overseeing brand safety.
Musk has a hard time earning advertiser’s trust. The advertisers’ tenacity might make the billionaire give up on some of his decisions.