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Home  /  Personal Brand and NIL  /  FTC Disclosure Rules

What do influencers have to disclose in sponsored posts?

You have to disclose any brand connection your audience would not expect: payment, free products, a family or work tie, or an affiliate commission. Under the FTC's Endorsement Guides the disclosure must be clear and conspicuous and sit in the post itself, not only in your profile.

Brand deals are licenses of your identity, and the disclosure clause is the one part of the deal that federal law writes for you. Our page on personal brand and NIL agreements covers the rest of the contract. This page explains the disclosure rules themselves, drawn from the FTC's Guides Concerning Use of Endorsements and Testimonials in Advertising (16 CFR Part 255, revised July 26, 2023), the FTC staff brochure Disclosures 101 for Social Media Influencers, and the staff answers in the FTC's Endorsement Guides FAQ.

The Guides interpret Section 5 of the FTC Act, 15 U.S.C. 45, which prohibits deceptive acts in commerce. The FTC's FAQ says the Guides themselves "don't have the force of law," but practices inconsistent with them can lead to enforcement actions under Section 5.

How disclosure works, step by step

  1. Decide whether the post is an endorsement. An endorsement is a promotional message that people are likely to believe reflects your own opinions or experience (16 CFR 255.0(b)). The Guides say "tags in social media posts" can be endorsements, and a paid live stream where you simply appear to enjoy a product counts too (255.0(g), Example 8).
  2. Identify the material connection. Under 255.5(a), connections include a business, family or personal relationship, money, and free or discounted products, even products unrelated to the one you post about, and "regardless of whether the advertiser requires an endorsement in return." Early access and the chance to win a prize count too.
  3. Ask whether your audience would expect it. A connection must be disclosed when "a significant minority of the audience" does not understand or expect it (255.5(a)). The FTC's influencer brochure adds: do not assume your followers already know.
  4. Choose plain words. The brochure accepts "advertisement," "ad," "sponsored," or "Thanks to [brand] for the free product." You do not have to state the dollar amount; 255.5(a) says the disclosure need not give "the complete details of the connection."
  5. Put it where nobody can miss it. On social media and the internet "the disclosure should be unavoidable" (255.0(f)). The Guides give a disclosure only on profile pages, or only behind a link labeled "more," as examples that are not clear and conspicuous (255.0(g), Example 9).
  6. Repeat it in every post. The FAQ says a disclosure belongs in "each and every ad" that would need one if viewed alone, so a sponsored trip needs a disclosure in each post, not one post for the whole trip.
  7. The brand checks your work. Advertisers should give endorsers guidance, monitor compliance, and act on problems (255.1(d)). The FAQ suggests monitoring for the length of a contract and "a reasonable time, such as a few months," after it ends.

Which words work, and which do not?

The FTC does not require magic words. Its FAQ recommends simple disclosures, such as "This is an ad for BRAND" or "BRAND paid me to tell you about it." The trouble comes from shorthand, from burying the disclosure, and from words that describe a relationship without saying it is a paid one.

Disclosure wording and how FTC staff guidance treats it
Wording or methodFTC staff viewWhere it says so
"Ad," "Advertisement," "Sponsored"Acceptable when placed where it is hard to missDisclosures 101
"#ad" or "#sponsored"Fine, but a hashtag is not necessary; works for paid posts and free productsDisclosures 101; Endorsement Guides FAQ
"Thanks [brand] for the free product"Good enough if a free product is all you receivedEndorsement Guides FAQ
"Gifted by [brand]"Sufficient for a free product only; "Gifted" alone is ambiguousEndorsement Guides FAQ
"sp," "spon," "collab," "thanks" or "ambassador" aloneToo vague; avoidDisclosures 101
Tagging the brandAn endorsement, not a disclosureEndorsement Guides FAQ
"Affiliate link" or a "buy now" buttonPeople may not understand you are paidEndorsement Guides FAQ
A personalized discount codeMay show a relationship but not that it is financialEndorsement Guides FAQ
The platform's built-in disclosure tool aloneNot necessarily enough; use your own disclosure too255.0(g), Example 9; Disclosures 101

Where does the disclosure go in each format?

The rule behind every format is the same: if the endorsement is made visually, disclose at least visually, and if it is spoken, disclose at least out loud. A disclosure made both ways at once "is more likely to be clear and conspicuous" (255.0(f)). It must also work on a phone, because the Guides treat a disclosure that is clear on a computer but not on a smartphone as inadequate (255.0(g), Example 11).

Placement by format, from the Endorsement Guides and FTC staff guidance
FormatWhere to disclose
Text post or captionWith the endorsement, visible before any "more" cutoff, not mixed into a block of hashtags or links
Photo or short-lived storySuperimposed on the image, long enough for viewers to notice and read it
Uploaded videoIn the video itself, ideally spoken and on screen, not only in the description; near the start or right before a mid-video endorsement
Live streamRepeated periodically or shown continuously, plus in the stream description
Blog or review with affiliate linksClose enough to the link that readers see both together
Host-read podcast adAn obvious commercial may need no payment disclosure, but a social post about the same product does (255.5(b), Example 12)

Who is responsible: the creator, the brand, or the agency?

All three can be. Advertisers are "subject to liability" for failing to disclose unexpected material connections, and "may be liable for a deceptive endorsement even when the endorser is not liable" (255.1(d)). Endorsers may be liable for failing to disclose and for claims they know or should know are deceptive (255.1(e)). Agencies, PR firms and review brokers may be liable for hiring and directing endorsers who skip disclosures (255.1(f)).

In practice, the FAQ says the FTC's enforcement focus "usually will be on advertisers or their ad agencies and public relations firms," though action against an individual might be appropriate, for example when an endorser keeps skipping disclosures after warnings. The FAQ also notes that defendants who received a Notice of Penalty Offenses regarding endorsements and then engaged in deceptive endorsement practices could face substantial civil penalties.

A separate FTC rule now carries direct civil penalties. The Consumer Reviews and Testimonials Rule (16 CFR Part 465), in effect since October 21, 2024, does not set influencer disclosure rules, according to the FTC's own Q&A, but it does reach influencers who sell testimonials and lie about having used a product. Our page on buying reviews and followers under the FTC rule covers that rule and its penalty of up to $53,088 per violation, the figure the FTC kept for 2026.

What changes the answer

  • What your audience already expects. A connection the audience reasonably expects need not be disclosed, and some benefits are too small to matter (255.5(a)). The FAQ adds that continually receiving free items from one brand can suggest you expect more, so disclose the relationship.
  • Whether the relationship is ongoing. If you have an ongoing relationship with a brand, the FAQ says to keep disclosing it even when you buy the product with your own money.
  • Where you live and who sees the post. U.S. law applies to a post from abroad if it is "reasonably foreseeable" that it will affect U.S. consumers (Disclosures 101), and other countries may have their own rules.
  • Who the audience is. When a post targets a specific group, such as older adults, "ordinary consumers" means members of that group (255.0(f)). Endorsements aimed at children "may be of special concern" (255.6).
  • Language. The disclosure should be in the same language as the endorsement (Disclosures 101; 255.0(g), Example 11).
  • What you claim. You cannot describe experience with a product you have not tried, and you can be liable for performance claims that need proof the brand does not have (255.1(e)).
  • Who is reposting. If the brand reposts your post without a visible disclosure, the brand should disclose its relationship in the repost (255.5(b), Example 3).
  • Selling your own product. If it is obvious that the brand is your own, the FAQ says no disclosure is needed; if that is not clear, disclose it.
  • Political content. The FAQ states that the FTC "doesn't have jurisdiction over political advertisements."

A worked example

For example, suppose a Savannah home-cooking creator signs a deal on March 2, 2026 with a cookware brand: a cash fee for three videos posted by May 31, a free set of pans, and a personal discount code that pays her a commission on each sale.

Each video opens with her saying "This video is sponsored by [brand]," while the same words appear on screen. Her captions start with "Ad:" so the disclosure shows before the "more" cutoff. Under her product links she writes "I get commissions for purchases made through links in this post," because the FAQ treats "affiliate link" alone as unclear and her code alone may not tell viewers she is paid.

She describes only what happened in her own kitchen, avoiding health claims the brand cannot support under 255.1(e). In June she posts a recipe using the same pans. Her relationship is ongoing, so she adds "Ad" again. When the brand shares her video on its own account, the brand adds its own disclosure, as 255.5(b), Example 3 describes, and its monitoring of her posts runs through the summer, in line with the FAQ's "few months" after a contract ends.

Common mistakes

  • Disclosing only in your bio. The Guides use a profile-page disclosure as an example of one that people "could easily miss."
  • Burying "#ad" at the end. The FAQ says a disclosure at the end of a long post, or mixed with other hashtags and links, is easier to miss.
  • Saying "free" when you were also paid. Disclosing only a free product implies you received nothing else, which the Guides call inadequate when money changed hands (255.5(b), Example 13).
  • Skipping disclosures on other platforms. The FAQ says a connection must be disclosed "everywhere you endorse the product," even where the brand did not ask for a post.
  • Treating a balanced review as exempt. A paid review that mentions negatives is still an endorsement and still needs a disclosure, according to the FAQ.
  • Letting the contract stay silent. A brand deal that never says who writes the disclosure, and where, invites both sides to assume the other handled it. Our influencer contract tips cover the clauses to ask for.

What to do this week

  1. List every brand that has paid you, sent you products, or given you a code or commission in the past year.
  2. Check your recent sponsored posts and add a clear disclosure at the start of any caption or video that lacks one.
  3. Write two or three standard disclosures you will use, such as "Ad" and "Thanks [brand] for the free product," and drop vague tags.
  4. Read the disclosure, usage and approval clauses in your current deals; our guide to licensing for creators and brands explains how usage rights in your content work.
  5. If a brand plans to run your face in paid ads, confirm the license covers that use; Georgia creators can read how Georgia protects your name and likeness.
  6. If an account is posting fake sponsored content in your name, preserve screenshots and read our page on online impersonation.

Frequently asked questions

Do I have to say how much the brand paid me?

No. Section 255.5(a) says a disclosure does not need the complete details of the connection, but it must communicate its nature clearly enough for people to judge its significance. The FAQ's own examples, such as "BRAND paid me to tell you about it," do that without naming a figure.

If I got a product for free but nobody asked me to post, do I still disclose?

Yes, if you post about that brand. Disclosures 101 says to disclose "even if you weren't asked to mention that product." Free products count as a material connection under 255.5(a) whether or not the brand requires a post.

Can brands use AI-generated avatars or virtual influencers?

The FTC's Q&A says its reviews rule does not ban virtual influencers, but avatar marketing can still be deceptive under Section 5. Using a well-known person's likeness without permission raises separate issues, covered on our page about AI copies of your voice or face.

Can the FTC fine me personally?

The Guides are not themselves a rule with fines, and the FTC says its focus is usually on brands and agencies. But endorsers can be liable under Section 5, and penalties can follow a Notice of Penalty Offenses or a knowing violation of a rule such as Part 465.

Do brand photos I repost need a disclosure?

If the post promotes a brand you have a connection with, yes. Separately, reposting a photo you did not take raises copyright questions; see who owns a photo of you.

Is a disclosure in the comments enough?

No. The FAQ answers this directly: a disclosure in the comments "is easily avoidable and thus not clear and conspicuous." Put it in the post or video itself.

Should I protect my creator name before signing deals?

It often helps, because platform brand protection programs generally want a registration number before they act on impersonation or counterfeit merchandise. Our guide to trademark protection for creators explains the steps.

Zala IP Law advises creators and brands on endorsement, sponsorship and licensing agreements, and Shreepal J. Zala practices federal intellectual property and entertainment law nationally. Clients near the office can read about our intellectual property and entertainment practice in Atlanta. If a brand deal is on the table, request a consultation or call 404-313-1701 before you sign.

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