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).
What to do next
Related questions
What is the FTC rule on incentivized reviews?
Anyone who receives something of value for an endorsement must clearly disclose that material connection — the brand is responsible for ensuring compliance.
Can I pay customers for Google reviews?
No. Google's policies prohibit incentivized reviews, including discounts, free items, or any form of compensation in exchange for a review.
How much discount should I offer for an Instagram post?
10–20% off is the sweet spot for most small businesses. Match the discount to the effort: 10% for a story tag, 20% for a feed photo, 25–30% for a reel.