The FTC (Federal Trade Commission) requires influencers to be transparent about their relationships with brands so that followers can distinguish between organic content and paid advertisements. The core rule is simple: if you have any “material connection” to a brand you are mentioning, you must disclose it.
1. When Do You Need to Disclose?
You must disclose your relationship whenever you mention a brand and have a connection that might affect how consumers evaluate your endorsement. This includes:
Financial Relationships: Being paid to post or being an “ambassador” for the brand.
Free Stuff: Receiving free products, services, or travel, even if you weren’t explicitly asked to post about them.
Personal/Family Ties: If the brand is owned by a family member or friend.
Employment: If you work for the company.
Practical Law/Westlaw
Practical Law/Westlaw
+3
2. How to Make a Proper Disclosure
The FTC’s standard is that disclosures must be “clear and conspicuous,” meaning they are hard to miss and easy to understand.
Seyfarth Shaw
Seyfarth Shaw
+1
Placement Matters:
Captions: Put it at the beginning. Do not bury it in a “See More” link or a cloud of other hashtags.
Videos: The disclosure should be in the video (audio and/or text overlay), not just in the description box.
Stories/Images: Superimpose the text directly over the image or video so it stays visible long enough to be read.
Live Streams: Repeat the disclosure periodically so late-joiners hear it.
Language Matters:
Use: Simple terms like “Ad,” “Paid advertisement,” “#ad,” or “Sponsored”.
Avoid: Vague abbreviations like “#sp,” “#spon,” or “collab,” as many consumers don’t know what they mean.
Practical Law/Westlaw
Practical Law/Westlaw
+4
3. Key Influencer Responsibilities
You Are Responsible: Even if a brand tells you not to disclose or says they’ll handle it, you are legally liable for the omission.
Be Honest: You cannot talk about an experience with a product if you haven’t actually tried it. If you hated a product, you cannot say it was great just because you were paid.
Platform Tools Aren’t Enough: While platforms like Instagram have “Paid Partnership” tags, the FTC often considers these insufficient on their own; you should still include your own clear text disclosure.


