Lord & Taylor has reportedly dropped the two social media ad agencies that helped it run afoul of the Federal Trade Commission’s recently unveiled guidelines on so-called “native advertising.”

The department store chain caught flak for a series of Instagram posts last year made by fashion bloggers connected to Nylon magazine and Web sites that hyped a new dress. The Instagram posts never acknowledged that they were shills paid for by Lord & Taylor’s ad agencies.

A spokeswoman for Lord & Taylor declined to comment or identify the agencies in question. But a source close to the situation said the specialists in social media campaigns were dumped after Lord & Taylor ended up in the regulatory cross hairs.

“Lord & Taylor is deeply committed to our customers and we never sought to deceive them in any way, nor would we ever,” the company said in a statement.

It was the first enforcement action from the FTC since the agency adopted new guidelines late last year on native advertising — paid ads in online videos or print that are made to resemble independent content produced by journalists.

The public comment period on a consent agreement between Lord & Taylor and the FTC ends Thursday. Lord & Taylor cooperated with the FTC once it was flagged for the violations and did not have to pay a civil penalty.

“In the FTC’s consent order, there is no finding of wrongdoing whatsoever A year ago, when it came to our attention that there were potential issues with how the influencers posted about a dress in this campaign, we took immediate action with the social media agencies that were supporting us on it to ensure that clear disclosures were made,” the statement said.