What Are FTC Rules for Influencer Disclosure?
The FTC requires creators to clearly and prominently disclose any material connection with a brand (payment, free product, family ties) in the post itself, in plain language ('paid partnership' or '#ad'), before any user has to click 'more.' Both brand and creator can be held liable for missing disclosures.
What 'clear and prominent' means
FTC guidance on endorsements (last major update: 2023) requires disclosures to be clear and conspicuous. In practice: use plain words like 'paid partnership,' 'ad,' or 'sponsored.' Avoid jargon like 'collab,' 'partner,' 'sp,' or 'ambassador' - the FTC has explicitly said these are not clear enough.
The disclosure must appear before users have to take any action (no clicking 'more,' no scrolling past the fold, no last-frame-of-the-video reveal). On Instagram, the built-in 'paid partnership' label satisfies this. On TikTok, the built-in 'Disclose video content' toggle plus an in-caption '#ad' is the safer combo.
Who's liable
Both the creator and the brand can be held liable. The FTC has pursued cases against brands whose partner creators failed to disclose. The Endorsement Guides explicitly say brands must monitor for disclosure compliance and take action if creators don't comply.
Penalties have ranged from public letters of warning to multi-million-dollar settlements (e.g., Lord & Taylor, $250K settlement, 2016).
Key facts
- ▸FTC fines can reach $50,120 per violation per individual influencer post (FTC Penalty Schedule, 2024).
- ▸Disclosure must be in the post itself, not in bio or separate post.
- ▸Plain language required - '#collab' and '#partner' are not sufficient per FTC guidance.
- ▸Both creator and brand share liability.
- ▸About 70% of sponsored posts on Instagram are properly disclosed (Mediakix, 2024) - meaning 30% are not.
Step-by-step
- 01Require FTC-compliant disclosure in every brief.
- 02Specify exact language: 'paid partnership' or '#ad' early in caption.
- 03Use platform-native disclosure tools where available.
- 04Spot-check creator posts after they go live.
- 05Document compliance for your records.
Common mistakes
- ×Allowing 'collab,' 'partner,' or vague language.
- ×Burying disclosure at the end of the caption.
- ×Not monitoring creator posts after publication.
- ×Assuming small accounts don't need to disclose.
Tools and resources
FTC disclosure built into every brief and verified at content review.
Free. The authoritative reference.
Native 'paid partnership' label satisfies disclosure.
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