Not labeling as an ad is a clear FTC violation.

The Federal Trade Commission (FTC) enforces clear guidelines requiring that advertisements and paid endorsements be clearly disclosed to consumers. This is to prevent deceptive advertising practices that could mislead the public. According to the FTC's Endorsement Guides, any material connection between an endorser and an advertiser must be clearly and conspicuously disclosed. Failure to do so can trigger investigations and enforcement actions under Section 5 of the FTC Act, which prohibits unfair or deceptive acts or practices.

Specifically, not labeling content as an ad when it is sponsored or paid for is considered deceptive because it hides the commercial nature of the message from consumers. Recent examples include complaints filed against platforms like X (formerly Twitter) for not labeling all ads properly, highlighting the FTC's active role in monitoring compliance. The FTC also issues Notices of Penalty Offenses to companies engaging in such unlawful practices, which can lead to civil penalties if violations continue.

In summary, "not labeling as an ad" when content is sponsored or paid promotion is indeed a clear violation of FTC rules designed to protect consumers from deceptive advertising.