FTC Endorsement Guides: What US Influencers Must Disclose

Four checks before you post

What the Guides are, and who they cover

The Endorsement Guides are the Federal Trade Commission's guidance on when an endorsement could be unfair or deceptive under the FTC Act. They are published as 16 CFR Part 255. The FTC announced a revised version on June 29, 2023, the first update since 2009. The agency describes the Guides as advice to businesses on what practices may violate the FTC Act, rather than as binding rules, but they show how the FTC reads the law when it reviews a post.

The 2023 revision widened the definition of "endorsement" so that it reaches fake reviews, virtual influencers and social media tags. It also explains potential liability for three groups: advertisers, endorsers and intermediaries. In other words, a creator, the brand that paid or supplied the product, and an agency or platform partner in the middle can all have responsibilities.

For an American creator, the practical point is simple. If you have a connection to a brand that your audience would not expect, and that connection could affect how much weight they give your recommendation, you disclose it.

When a disclosure is required

The FTC's influencer brochure, Disclosures 101 for Social Media Influencers, says to disclose any financial, employment, personal or family relationship with a brand. A financial relationship includes free or discounted products or services. The agency's wording is direct: disclose the relationship if you got anything of value to mention a product.

Several details catch creators out.

The FTC's question-and-answer resource on the Guides adds that free products sent with an expectation of promotion are covered. It also recommends disclosing a loaned product that you must return, because even for less valuable items it is best to be open and transparent. If you received something else as well, such as payment, saying only that the product was free can be insufficient.

Where the disclosure has to appear

A correct sentence in the wrong place does not count. The FTC says the disclosure should be placed with the endorsement message itself, and that a notice on an About Me page, at the end of a post, or behind a "MORE" link is likely to be missed. The closer it is to your recommendation, the better.

By format, the FTC guidance says:

Platform tools such as a built-in "paid partnership" label can help, but the FTC says not to rely on them alone. The 2023 revision makes the same point, noting that a platform's built-in disclosure tool might not be an adequate disclosure.

Wording that works and wording that does not

Plain language is the standard. The FTC's examples of wording that works include "Thanks to Acme brand for the free product," "ad," "advertisement" and "sponsored." On platforms with tight space, a label such as "AcmePartner" or "Acme Ambassador" can work. Adding #ad or #sponsored is optional, and the FTC treats "#ad," "Ad:" and "ad" at the start of a post as comparable.

The agency also lists what to avoid:

The disclosure should also be in the same language as the endorsement. A Spanish-language video with an English-only label does not help the audience that watched it.

What you may and may not say

A disclosure does not fix a false claim. The FTC's influencer guidance says not to discuss a product's performance based on experience you have not had, and not to call a product great if you were paid and did not like it. It also warns against product claims that would require proof the advertiser does not have, such as scientific evidence that a product treats a health condition.

The question-and-answer resource adds that endorsers who are not experts may be liable for misleading or unsubstantiated claims, especially when their statements do not match their actual experience. Treat the script a brand gives you as a draft, not a defence.

Who is responsible

The FTC states that as an influencer it is your responsibility to make these disclosures, and that you should know the Guides rather than rely on brands or others to do it. Brands carry their own duty. The FTC says advertisers need reasonable programs to train and monitor their networks. It notes that pre-approving paid posts is easier than finding them afterward, and that for fleeting content such as Stories, real-time monitoring is often impractical, so advance approval is recommended. Handing promotion to an agency does not remove the brand's responsibility, and influencers who only receive free products should still get disclosure instructions.

On enforcement, the FTC says its focus usually falls on advertisers, their ad agencies and PR firms. It adds that individual endorsers may face action in certain circumstances, such as failing to disclose after receiving warnings. That is a statement about priorities, not a safe harbour.

A routine for creators

Disclosure is one part of running a creator business with predictable risk. The creator economy overview and the comparison of creator revenue models explain how sponsorships fit with other income streams. For a wider view of which agencies set the rules online, see how Washington shapes platform rules. Promotional labels also have to stay separate from subscription checkout terms, a point covered in the piece on the FTC click-to-cancel rule and dark patterns.

Official sources