X, formerly known as Twitter, is under renewed scrutiny for failing to flag ads on its platform. Users noticed ads that didn’t have the typical “Ad” tag, blurring the line between paid content and regular content. This issue is not only frustrating for users, but can also attract the attention of regulators like the FTC.

The company is already going through a difficult phase and this could make the situation worse

X’s silence led to speculation as to whether this was a deliberate action or a technical glitch. In both cases, this oversight calls into question the platform’s commitment to transparency and could worsen existing problems. Elon Musk, who currently runs the platform, announced a 60% drop in advertising revenue, blaming activist campaigns for the decline.

Nandini Jammi, co-founder of transparency advocate Check My Ads, shared examples of such unmarked ads. His group encourages users to report similar incidents, emphasizing the need for accountability.

Lack of clear labeling can create a domino effect. Not only is this a user experience issue, it can also damage advertisers’ credibility. This comes at a time when the company has lost two key executives responsible for brand safety.

While This latest dispute, combined with dwindling advertising revenue and an unstable management team, could be the tipping point that forces X to take a more serious look at management and operations.