FTC rules for influencers in the U.S.: how to disclose paid collaborations
In the United States, the FTC requires that any relationship between a brand and a creator that could affect how the public weighs a recommendation (payment, free product, commission) be disclosed clearly and conspicuously. Brands and creators share responsibility. This is general guidance, not legal advice.
If you do influencer marketing in the United States, disclosing collaborations is not optional. The FTC (Federal Trade Commission) publishes guidance on the use of endorsements and testimonials in advertising and applies it to social media. Here is a practical summary.
What is a "material connection"
It's any relationship between the creator and the brand that the audience wouldn't expect and that could affect how they weigh the recommendation. It includes payments, commissions or affiliate links, free products or services, discounts or perks, and also employment or family relationships with the brand.
How disclosure should be done
- Clear and conspicuous: the audience should notice it without effort. Burying it in a list of hashtags or behind a "see more" isn't enough.
- Close to the recommendation: it should appear next to what is said about the product.
- In the same format: in a video, it's best to include it on screen and also say it out loud; in a story, keep it visible long enough.
- In plain language: terms like "ad," "advertisement" or "sponsored" are clear; ambiguous expressions may not be.
- Platform tools: each network's paid-partnership labels help, but it's best not to rely on them alone if they aren't visible enough.
The brand's responsibility
Not only the creator must comply: the brand is also answerable for what is published on its behalf. That's why it's wise to include the obligation to disclose in the contract, give clear instructions, review the content before it goes live and monitor compliance.
Checklist for brands
- Include a disclosure clause in every agreement.
- Explain to the creator how and where to disclose (with examples).
- Review the drafts and the final posts.
- Keep a record of instructions and approvals.
- Keep the creator from making claims about the product that you can't back up.
- Monitor the posts during the campaign and correct in time.
Examples of clear and confusing disclosure
| Usually clear | Usually confusing |
|---|---|
| A visible text like "Ad" or "Paid advertisement by [brand]" at the start of the caption | "#sp" or "#collab" lost among many hashtags |
| Saying it in the video and showing it on screen | Putting it only at the end of a long caption |
| Noting that the product was sent free by the brand | Not mentioning the product shipment because "there was no payment" |
What to include in the creator's instructions
- The text or label they must use to identify the collaboration.
- Where it must be placed (start of the caption, in the video, on screen).
- A reminder not to make claims about the product that aren't backed up.
- The obligation to keep the post live for the agreed period.
How to stay up to date
Periodically check the FTC's official guidance on endorsements and each platform's branded content policies. Rules and tools change, and your team and your creators should stay current.
Common mistakes
- Using only "#sp" or "#collab," which may not be clear to the audience.
- Putting the disclosure at the end of a long caption.
- Not disclosing when only a free product was sent.
- Assuming the rules don't apply if the creator lives outside the U.S. when they are addressing a U.S. audience.
For the general market context, read the guide to influencer marketing in the United States. If you work in Colombia, also check the Colombian rules.
Frequently asked questions
What happens if a creator doesn't disclose the collaboration?
It can expose the creator and the brand to penalties or warnings from the authorities. That's why it's key to include the obligation in the contract and monitor the posts.
Does a free product need to be disclosed?
Yes. Receiving a free product is a material connection that should be disclosed even if no payment is involved.
Is it enough to use the platform's paid-partnership label?
It can help, but check that it is visible and clear. Many brands also add clear text such as "ad" or "advertisement."
Does it apply to all types of content?
It applies to any recommendation with a material connection, whether video, photo, story, live stream or text. What varies is how to make the disclosure visible in each format.