In the US, the Federal Trade Commission (FTC) expects any post that endorses a product to disclose the creator's "material connection" to the brand: payment, free product, a discount, an affiliate commission, or a personal or business relationship. The disclosure has to be clear and hard to miss, placed in the post itself, in plain words such as "#ad" or "sponsored". Brands share the responsibility: the FTC expects you to tell creators what to disclose and to check that they do.
This is a plain-English summary for brands, not legal advice. Rules differ by country, and the FTC updates its guidance, so check the current version before a campaign.
What counts as a material connection
Anything that could affect how the audience weighs the recommendation:
- Payment, of any amount.
- Free or discounted products, even if you did not ask for a post.
- Affiliate links or codes that earn a commission.
- Trips, event invitations or other perks.
- Family, friendship or a business relationship with the brand.
If the creator would not have posted, or might have posted differently, without the connection, disclose it.
What a good disclosure looks like
The FTC's guidance ("Disclosures 101 for Social Media Influencers" and the Endorsement Guides it is based on) comes down to four tests:
- Clear words. "Ad", "#ad", "Sponsored", "Paid partnership with [brand]" or "[Brand] gave me this product" are clear. Vague tags such as "#sp", "#spon", "#collab", "#partner" or "thanks [brand]" are not.
- Hard to miss. At the start of the caption, not buried after the "more" cut, not hidden in a pile of hashtags, not only on the profile.
- In the format of the post. In a video, say it and show it on screen, not only in the caption. In a livestream, repeat it as people join.
- Every time. Each post that endorses the brand needs its own disclosure.
A platform's built-in label (such as Instagram's "Paid partnership" tag) helps, but the FTC has said not to assume it is enough on its own. Using it together with a clear disclosure in the post itself is the safe choice.
The endorsement itself must be honest
Disclosure is not the only rule:
- Creators can only describe their own experience if they actually used the product.
- They cannot make claims the brand could not make itself, such as health claims without evidence.
- The FTC's rule on fake reviews and testimonials (in effect since October 2024) bans fake reviews and the buying or selling of fake social media indicators, such as bought followers or views, used to misrepresent influence for commercial purposes.
What brands are expected to do
The FTC can act against brands, not only creators. A reasonable program looks like this:
- Put disclosure in the brief and the contract, with the exact wording you expect.
- Check posts before or right after they go live, and ask for corrections when a disclosure is missing.
- Keep records of what you asked for and what was posted.
- Stop working with creators who repeatedly ignore it.
Outside the US
Other countries have similar rules. In the UK, the Advertising Standards Authority (ASA) and the Competition and Markets Authority expect paid content to be labelled clearly and upfront, usually with "Ad" or "#ad". Many EU countries have their own guidance. When a campaign reaches several countries, follow the strictest rule that applies.
A checklist to give every creator
| Do | Don't |
|---|---|
| Start the caption with "#ad" or "Ad" | Hide the disclosure after "more" or among hashtags |
| Say it in the video and show it on screen | Rely only on the caption for video |
| Use the platform's paid partnership label too | Use only the platform label |
| Disclose gifted products | Assume free product does not count |
| Talk only about your real experience | Repeat claims the brand gave you that you cannot back up |
| Disclose on every post, story and stream | Disclose once on your profile |
Frequently asked questions
Is "#gifted" enough for free products? It is clearer than nothing, but "Gifted by [brand]" or "[Brand] sent me this for free" leaves less room for doubt. If the creator was also paid, "#ad" is the clear choice.
Do we need to disclose if the creator only gets a discount code to share? If they earn anything from the code (commission, free product, payment), yes. That is a material connection.
Does the disclosure need to be in English? It should be in the same language as the post, so the audience understands it.
Every Infew campaign briefs creators on disclosure and checks posts before they count as delivered. Book a call to talk about your next campaign.