Influencer marketing drives real-world consumer behavior. In situations where followers believe an endorsement is genuine, it shapes how they spend money and what products they trust. That’s why the Federal Trade Commission (FTC) regulates influencer endorsements under its Endorsement Guides, which were updated in 2023 to clarify rules across social platforms.
The area of concern when it comes to influencer marketing is deception. If a creator promotes a product without disclosing that they were paid, received a gift, or have a personal relationship with the brand, the FTC considers that deceptive. It doesn’t matter how small the benefit is; if there’s a material connection, there must be disclosure.
The updated guidelines now apply to more than traditional influencers. Bloggers, YouTubers, Twitch streamers, founders promoting their own brands, affiliate marketers, and even employees can trigger liability if they endorse products without proper disclosures.
The FTC has made clear that it will enforce these rules. In recent years, it has sent warning letters, initiated settlements, and imposed financial penalties against both companies and influencers who failed to comply.
Who Must Follow the FTC Influencer Rules
The FTC defines an influencer as anyone who endorses a product to an audience and has a material connection to the brand. That connection could be payment, a gift, a personal relationship, or a business partnership. It includes formal contracts, affiliate commissions, or even product discounts.
These rules apply to:
- Professional content creators and streamers
- Brand ambassadors and celebrity endorsers
- Founders, employees, and agency partners promoting a product they helped build
- Users who receive free items in exchange for content
- Podcast hosts, YouTubers, and newsletter writers who feature brands
Even an average user becomes an endorser if they post about a product after receiving compensation or a free item. Whether the connection is formal or informal, the FTC still requires disclosure.
Material relationships must be disclosed regardless of platform. Whether the content appears on Instagram, TikTok, YouTube, Twitch, LinkedIn, or Substack, the disclosure standard stays the same.
The FTC does not distinguish between paid influencers and micro-creators. It focuses on the effect on the audience. If the relationship could affect the weight or credibility of the endorsement, it must be disclosed.
The Legal Standard: Clear and Conspicuous Disclosure
Under FTC rules, disclosure must be clear, conspicuous, and unavoidable. It has to appear where the audience will see or hear it without searching or guessing. The standard is designed to protect consumers from deceptive advertising and to give them context before they act on a recommendation.
Disclosures must:
- Use plain, direct language like “sponsored,” “paid partnership,” or “advertisement.”
- Be placed where the audience will see them without clicking or expanding
- Appear early in the post, video, or caption—not buried after hashtags or hidden behind “read more.”
- Be included both visually and verbally in video and audio formats
FTC guidance makes clear that platform-provided disclosure tools—like Instagram’s “Paid Partnership” label or TikTok’s “Sponsored” toggle- can supplement a disclosure but do not replace it. Creators must still ensure that disclosures are clear, conspicuous, and unavoidable within the content itself.
If an endorsement appears in a livestream, disclosure must be repeated verbally and on-screen. If it’s a podcast, it must be spoken and written in the episode description. If you’re running a story, reel, or temporary content, the disclosure must be overlaid clearly on the image or video.
Vague language like “collab,” “ambassador,” or abbreviations like “#spon” will not meet the standard. The FTC considers those insufficient. The term “ambassador” alone is too vague; if used, it must be accompanied by clear language such as “Paid Brand Ambassador” or “Sponsored by [Brand].”
Platform-Specific Disclosure Rules
The FTC expects creators and brands to tailor their disclosures based on the platform. That means understanding how each platform displays content and where users are likely to look.
| Format | Platform Examples | Disclosure Requirement |
| Static Posts | Instagram, Facebook, Twitter | Disclosure must appear above the fold before users click “see more.” |
| Stories & Reels | TikTok, Instagram Stories, Facebook Stories | Disclosure must be superimposed directly on the image or video, using clear language |
| Videos | YouTube, Vimeo | Disclosure must be spoken aloud and included in the description |
| Livestreams | Twitch, TikTok Live, YouTube Live | Disclosure must be repeated both visually and verbally throughout the stream |
| Podcasts | Spotify, Apple, Google | Disclosure must be spoken clearly within the episode and included in the show notes. If the endorsement appears more than once, the disclosure should be repeated to ensure audience understanding. |
The FTC has stated that if a user might miss the disclosure, it fails the legal test. That includes disclosures buried in a caption, hidden in a string of hashtags, or stated once in a 30-minute video.
Every format must carry its own disclosure, regardless of what other formats are used in the same campaign.
What the FTC Prohibits (With Examples)
The FTC does not only require clear disclosure. It also prohibits specific conduct that misleads consumers. Violations can result in enforcement actions, settlements, and public exposure of both the creator and the brand.
You cannot:
- Rely on vague or confusing hashtags like “#spon” or “#collab.”
- Hide disclosures behind “View More” links or inside long captions
- Endorse a product you’ve never used or tested
- Repeat brand talking points without stating that you were paid
- Use health, performance, or outcome claims that cannot be proven
- Say a product worked well if you believe it didn’t
- Accept pre-approval terms that restrict negative comments
These are not abstract rules. The FTC has already enforced them:
CSGOLotto (2017): Two influencers failed to disclose that they owned the company they promoted. They posted gambling videos, encouraging viewers to play, without ever revealing their roles as President and VP. FTC settled, but it set a precedent: material ownership must be disclosed.
Teami (2020): Influencers made false health claims about detox teas on Instagram. The FTC fined the company and sent warning letters to influencers. Claims included weight loss, flu prevention, and other benefits the company couldn’t prove. Settlement included $930,000 in customer refunds.
UrthBox (2019): The company encouraged users to leave positive reviews in exchange for free snacks, but those reviews appeared as unbiased. The FTC held the company liable and clarified that even average consumers must disclose when a material relationship exists.
Amazon Affiliate Links (2023): The FTC issued warning letters to multiple influencers who promoted products using Amazon affiliate links without any disclosure.
Child-Directed YouTube Channels (2024): FTC scrutiny increased on toy and family YouTube creators who failed to clearly disclose paid promotions to child audiences.
If the content could deceive a reasonable consumer, it likely violates FTC rules. Payment or benefit triggers disclosure. False or unverified claims trigger liability.
What the FTC Requires You to Do
The FTC requires disclosure whenever a material relationship exists between a creator and a brand. The form of compensation does not matter. If the relationship could influence how an audience evaluates the endorsement, disclosure is mandatory.
Material relationships include:
- Paid sponsorships or brand deals
- Free products, samples, or trials
- Affiliate links or commission-based referrals
- Discounts, perks, or early access
- Family, personal, employment, or ownership ties to the brand
Once a material relationship exists, the disclosure must meet three legal standards.
- Clear
Use plain language. “Sponsored by [Brand]” or “I was paid for this post” works. Abbreviations, euphemisms, or implied disclosures do not.
- Conspicuous
The disclosure must appear before the audience engages. That means before clicking, watching, or buying. In video or audio content, it must be stated out loud. In visual content, it must be readable without scrolling or expanding text.
- Consistent
Every format needs its own disclosure. A livestream, a caption, a podcast read, and a newsletter placement each require disclosure. One mention does not cover an entire campaign.
Platform disclosure tools can supplement these requirements, but they do not replace them. The FTC evaluates what the audience sees and understands, not what the platform technically allows.
For creators who operate websites or apps, additional legal obligations may apply. Depending on audience location and data practices, this can include:
- A Privacy Policy and Cookie Notice
- A “Do Not Sell or Share My Personal Information” link under California law
- Consent mechanisms for tracking under GDPR
If your content targets international audiences, additional rules may apply. For example, the UK’s Advertising Standards Authority (ASA) requires influencer marketing disclosures like “Ad” or “Advert” at the beginning of posts. The EU’s Digital Services Act (effective 2024–2025) also imposes new transparency obligations for commercial content on large platforms.
Why This Applies to Brands Too
Disclosure is not just a creator issue. Brands are accountable when they direct, finance, or benefit from endorsements that fail to comply with FTC rules. If your marketing team provides product samples, campaign briefs, or talking points, your company has a legal role in the final message.
This applies even if the influencer posts independently. The FTC has made clear that companies can be held liable when they fail to train or supervise the creators they engage. Claiming ignorance is not a defense. If your campaign depends on creator credibility, then your compliance systems need to match that level of risk.
Monitoring, documentation, and pre-approval workflows are no longer optional. They’re baseline controls.
What’s Coming Next
The FTC is expanding its enforcement strategy. New focus areas include child-directed content, podcast ads, affiliate links, and AI-generated endorsements. The agency is testing the boundaries of existing law, and it’s already warning that creators themselves may soon face direct penalties, not just the brands that sponsor them.
The FTC is also monitoring the use of AI-generated endorsements, including deepfake videos and synthetic voices. Brands and creators using AI tools must ensure audiences are not misled into thinking a real person provided an endorsement. If synthetic media is used, disclosure is required.
This is the point where compliance must shift from reactive to embedded. You cannot wait for a cease-and-desist or a warning letter to start managing disclosure risk. If your growth depends on content that influences buying behavior, you’re operating in a regulated space, whether you’ve planned for it or not.
Traverse Legal helps creators, founders, and brand legal teams build enforceable disclosure programs that survive audits and scale with campaigns. Book a disclosure risk audit.
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