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FTC compliance

Is it legal to offer discounts for Instagram posts?

Short answer

Yes — incentivized Instagram posts are legal in the US as long as the customer discloses the relationship, typically with #ad or Instagram's paid-partnership tool.

Reviewed May 15, 2026

Key points

  • Yes — but the customer MUST disclose the relationship
  • FTC requires disclosure to be "clear and conspicuous"
  • Use #ad in the first hashtags, or Instagram's Paid Partnership tag
  • Brands are responsible for ensuring their endorsers comply
  • Same rules apply on TikTok, Facebook, YouTube (different disclosure formats)

The full answer

Instagram permits incentivized content and so does the FTC, with one critical condition: the customer who posts must disclose that they received something in exchange. The FTC's Endorsement Guides require disclosures to be "clear and conspicuous." In practice that means:

• On a feed post: #ad in the first few hashtags, or Instagram's official Paid Partnership tag • On a story: a visible "Paid partnership" sticker or "#ad" in plain text • On a Reel: a verbal mention or on-screen text

Failing to disclose isn't just an Instagram policy violation — the FTC has gone after both brands and creators directly. The agency's 2023 update made clear that the brand is responsible for ensuring its endorsers comply, even when the endorser is a regular customer rather than a paid influencer.

Social Perks auto-injects the platform-specific disclosure into every campaign brief. When a customer redeems a perk by posting, the campaign instructions show exactly which hashtag or tag to use. The system blocks submissions that don't include the disclosure. This isn't optional — there's no toggle to turn off FTC compliance — because the legal exposure isn't worth the convenience.

The same rules apply on TikTok (uses the Branded Content toggle), Facebook (#ad or Paid Partnership label), and YouTube (built-in paid-promotion disclosure).