The Federal Trade Commission (FTC) has strict rules for influencer marketing to protect consumers from misleading ads. Violations can result in fines up to $53,088 per violation in 2025. Here’s what you need to know:
Top Compliance Points
- Disclose paid partnerships: Use clear terms like "Sponsored" or "#Ad" at the start of posts.
- Make disclosures visible: No hidden hashtags or fine print.
- Disclose all material connections: Payments, free products, affiliate links, or family/business ties.
- Platform-specific rules: Follow disclosure tools and placement guidelines for Instagram, TikTok, and YouTube.
Examples of Proper Disclosures
- "Paid partnership with [Brand]"
- "Thanks to [Brand] for the free product"
Consequences for Breaking Rules
- Fines up to $53,088 per violation.
- Cases like Kim Kardashian’s $1.26M fine (2022) show the risks of ignoring these rules.
Takeaway: Transparency isn’t optional. Follow FTC rules to avoid penalties and maintain consumer trust.
New FTC Guidelines & Disclosures that Brands, Agencies and Influencers Need to Know
FTC Disclosure Requirements
Following FTC disclosure guidelines is essential for maintaining compliance and preserving trust with your audience. These rules apply to all types of influencer marketing, whether it’s a social media post, blog article, or video content.
Understanding Material Connections
A material connection refers to any relationship that could impact how consumers perceive a recommendation. These connections must be disclosed if they could influence the credibility of the endorsement.
| Type of Connection | Disclosure Required | Example |
|---|---|---|
| Monetary Payment | Yes | Receiving payment for content |
| Free Products | Yes | Products provided for reviews |
| Affiliate Links | Yes | Links offering commission |
| Family/Business Ties | Yes | Employment or ownership ties |
| Contest Prizes | Yes | Rewards from giveaways |
"A material connection can consist of a business relationship, a family relationship, monetary payment or giving free product to the influencer." – Jennifer Santos, Attorney, National Advertising Division, BBB National Programs
How to Write Clear Disclosures
Disclosures need to be straightforward and easy to spot. The FTC prioritizes transparency and clarity to ensure consumers aren’t misled.
1. Placement Requirements
Disclosures should appear prominently at the start of the content – before any promotional messages. They must be visible without requiring users to click "more" or scroll further.
2. Examples of Acceptable Disclosure Language
- "Sponsored"
- "Advertisement" or "#Ad"
- "Paid partnership with [Brand]"
- "[Brand] sponsored this post"
- "Thanks to [Brand] for the free product"
3. Examples of Unacceptable Disclosures
- Abbreviations like "sp" or "spon"
- Ambiguous terms like "collab"
- "Ambassador" (without context)
- Hashtags buried within captions
- Disclaimers hidden in fine print
Disclosure Rules by Platform
Each platform has its own set of requirements for disclosures, while still adhering to FTC guidelines:
- Use the "Paid Partnership" tool.
- Place disclosures at the start of captions.
- Add disclosure overlays on Stories.
- Ensure disclosures are visible before the "more" button.
TikTok
- Enable the commercial content disclosure toggle.
- Include both verbal and written disclosures.
- Place disclosures in the first few seconds of content.
- Use the platform’s "paid partnership" label.
YouTube
- Check the "paid promotion" box in settings.
- Mention the disclosure verbally within the first 10 seconds.
- Add written disclosures in the video description.
- Repeat disclosures for longer videos.
The FTC has demonstrated its commitment to enforcing these rules, with penalties for non-compliance serving as a clear warning.
"When there exists a connection between the endorser and the seller of the advertised product that might materially affect the weight or credibility of the endorsement, and that connection is not reasonably expected by the audience, such connection must be disclosed clearly and conspicuously." – 16 CFR § 255.5
FTC Enforcement Methods
The Federal Trade Commission (FTC) keeps a close watch on social media to ensure influencers and marketers follow the rules. Their approach includes proactive monitoring, investigating consumer complaints, and working with other agencies to identify and address violations.
Past FTC Cases
The FTC has taken action against several high-profile cases, underscoring its focus on transparency in influencer marketing:
| Case | Violation | Penalty/Outcome |
|---|---|---|
| Google & iHeartMedia (2023) | 29,000 deceptive radio endorsements for the Pixel 4 | $9.4 million in penalties |
| Fundrise Advisors (August 2023) | Undisclosed payments to over 200 social media creators | $250,000 penalty |
| Kim Kardashian (October 2022) | Failure to disclose payment for a crypto promotion | $1.26 million fine |
These cases highlight the FTC’s persistent efforts to ensure honesty in advertising. Since 2021, social media-based scams have caused reported losses of $2.7 billion, with one in four fraud victims stating their ordeal began on social platforms.
"It’s irresponsible for any trade group to hire influencers to tout its members’ products and fail to ensure that the influencers come clean about that relationship… That’s certainly true for health and safety claims about sugar and aspartame, especially when made by registered dieticians and others upon whom people rely for advice about what to eat and drink."
– Samuel Levine, Director of the FTC’s Bureau of Consumer Protection
Penalties for Breaking Rules
The consequences of violating FTC rules can be both financial and corrective, as shown in the cases above.
Financial Penalties:
- Civil penalties can reach up to $53,088 per violation (adjusted annually for inflation as of 2025).
- Multiple infractions can lead to fines totaling millions of dollars.
Non-Financial Consequences:
- Federal injunctions
- Mandatory consumer refunds
- Cease-and-desist orders
- Corrective advertising requirements
In August 2024, the FTC introduced a rule banning fake reviews, including those generated by AI. Violators face fines of up to $51,744 per incident. The agency has also targeted investment scams, with U.S. consumers losing $5.7 billion in 2024 alone, much of it linked to misleading social media promotions.
"Google and iHeartMedia paid influencers to promote products they never used, showing a blatant disrespect for truth-in-advertising rules."
– Samuel Levine, Bureau of Consumer Protection Director
These enforcement actions emphasize the importance of adopting strict compliance measures to avoid hefty penalties and reputational damage.
sbb-itb-32a2de3
Building a Compliance Plan
Selecting and Managing Influencers
When choosing influencers to partner with, it’s essential to evaluate them thoroughly. Here’s what to consider:
| Evaluation Criteria | Key Points | Required Documentation |
|---|---|---|
| Compliance History | Check for any past FTC violations or warnings. | Screenshots of previous sponsored content. |
| Content Quality | Look for genuine engagement and performance metrics. | Performance analytics reports. |
| Disclosure Practices | Ensure they clearly identify partnerships in their content. | Examples of how they disclose sponsorships. |
| Brand Alignment | Confirm their values and audience align with your brand. | Audience demographic data. |
To ensure compliance, include FTC-specific clauses in influencer contracts. These should cover:
- The exact language and placement required for disclosures.
- A clear process for content review and approval.
- Defined consequences for failing to comply.
- Documentation obligations for all sponsored content.
Tracking Disclosure Compliance
Monitoring influencer compliance is crucial to avoid FTC penalties. Automated tools can simplify this process by offering features like:
- Real-time monitoring of content across platforms.
- Automated checks for proper disclosures.
- Performance tracking for sponsored posts.
- A system to document all influencer activity.
To further minimize risks, consider these practices:
- Content Review Process
Always pre-approve sponsored content before it goes live. For example, the FTC’s action against Teami in March 2020, which led to $930,000 in refunds, underscores the importance of a solid review process. - Documentation System
Maintain detailed records, including:- Signed influencer agreements.
- Approved content versions.
- Payment details.
- Evidence of proper disclosure implementation.
- Regular Audits
Conduct monthly compliance checks to catch and address issues early.
Influencer Compliance Training
Providing influencers with proper training on FTC regulations can prevent mistakes. Training should focus on:
- Platform-specific rules for disclosures.
- Examples of compliant and non-compliant content.
- Updates on FTC regulations.
- Best practices for placing disclosures effectively.
Leverage tools like Red Oak‘s monitoring software to flag potential FTC violations before content is published. This technology is especially useful for overseeing financial influencers and ensuring their disclosures are accurate.
Regular training sessions should also cover:
- Recent FTC enforcement actions and their implications.
- The latest updates to disclosure requirements.
- Platform-specific guidelines.
- Common mistakes and how to avoid them.
Both the brand and the influencer are equally responsible for ensuring proper disclosures. These strategies not only protect against compliance risks but also fit seamlessly into broader campaign management efforts, which will be discussed in the next section.
Managing Large-Scale Campaigns
Multi-Platform Management
Running influencer campaigns across various social media platforms comes with its own set of challenges, especially when it comes to ensuring compliance with FTC regulations. Each platform demands a tailored approach to disclosure: videos need clear on-screen labels, live streams require periodic verbal reminders, static posts must include straightforward sponsorship language, and ephemeral content like Stories or Reels should feature noticeable overlays. Relying solely on platform tools won’t cut it; every piece of content must include disclosures that are both clear and easy to spot.
These platform-specific strategies lay the groundwork for compliance, particularly when campaigns span across borders.
Global Campaign Rules
Expanding influencer campaigns internationally introduces another layer of complexity. Brands must navigate not only FTC guidelines but also the advertising regulations specific to each country. Here’s how an expert puts it:
"The FTC requires that influencers clearly disclose any paid partnerships, gifts, or incentives they receive from brands. Disclosures must be easy to notice, in simple language, and included where the endorsement appears – such as in the post itself, not buried in a long caption or hidden in a hashtag. The goal is transparency, so audiences know when they’re viewing sponsored content."
To avoid penalties, brands should create a compliance framework that addresses each country’s rules, ensuring localized disclosure practices and accurate documentation. Past FTC actions have shown that ignoring these requirements can lead to hefty fines.
M Accelerator Support
For startups juggling domestic and international campaigns, M Accelerator provides expert solutions to simplify and maintain FTC compliance. Our services focus on three key areas:
- Compliance Framework Development
We help you draft solid influencer agreements that clearly outline disclosure requirements and placement. - Risk Management Protocol
Implement pre-approval systems and active monitoring to catch potential issues before they become problems. - Documentation Systems
Build efficient processes to track agreements, approvals, and campaign performance metrics.
Take, for instance, the case of Fundrise Advisors. The SEC recently penalized the firm for failing to ensure proper disclosures in an influencer program involving over 200 creators. This highlights how crucial it is to have robust compliance systems in place. M Accelerator’s approach ensures clear guidelines and proactive monitoring to help brands avoid similar pitfalls from the very beginning.
Key Points to Remember
The Federal Trade Commission (FTC) requires full transparency when it comes to endorsements. Below are the essential strategies to ensure compliance while protecting your brand:
- Use clear disclosure terms: Words like "Sponsored," "Ad," or "Paid Partnership with [Brand]" should be used explicitly. Skip abbreviations or vague language that could confuse the audience.
- Make disclosures easy to spot: Place disclosures where they can’t be overlooked and ensure they match the format of the content. For example, in videos, include both audio and visual disclosures. For livestreams, repeat disclosures periodically to maintain clarity.
- Reveal material connections: Any relationship that could influence how viewers perceive an endorsement must be disclosed. Here’s a quick breakdown:
| Connection Type | What to Disclose |
|---|---|
| Paid Posts | Payment amount and sponsor |
| Free Products | Product value and provider |
| Affiliate Links | Commission relationship |
| Brand Ownership | Company stake or position |
As Neal Schaffer explains:
"Briefly, what the FTC is trying to avoid is situations where companies have their employees manipulating the marketplace through fake reviews. The guidelines also prohibit using paid endorsers to deceive consumers into thinking that something is better or more popular than it actually is."
Failing to comply with these rules can lead to severe penalties. Alarmingly, four out of five influencers are still not disclosing paid partnerships properly. This makes it critical for brands to actively monitor influencer content and ensure compliance.
Additionally, keep thorough records. Document influencer agreements, disclosure requirements, and content approvals to provide evidence of your compliance efforts.
For brands running influencer campaigns, transparency isn’t optional – it’s a shared responsibility between brands and influencers to uphold honesty and protect consumers from misleading advertising.
FAQs
What happens if influencers or brands don’t follow FTC guidelines?
Failing to follow FTC guidelines can have serious repercussions for influencers and brands alike. Financial penalties can climb as high as $51,744 per violation, and offenders might also face lawsuits from consumers or competitors. Beyond the financial hit, ignoring these rules can damage your reputation, breaking the trust of your audience and customers.
The FTC keeps a close eye on violations, and deceptive practices can lead to legal action or even restrictions on platforms. Staying compliant with disclosure rules and being transparent isn’t just about avoiding penalties – it’s also key to building trust and long-term credibility.
How can influencers make sure their disclosures are clear and follow FTC guidelines on social media?
To align with FTC guidelines, influencers must make their disclosures clear, noticeable, and easy to understand. Simple phrases like "#ad" or "#sponsored" should appear at the very start of posts, ensuring they’re immediately visible. Don’t bury these disclosures in lengthy captions, hashtags, or hard-to-read small text.
For video platforms like TikTok or YouTube, disclosures should be spoken clearly at the beginning of the video and, if possible, displayed prominently on-screen. This way, viewers can easily recognize the nature of the content, no matter how they engage with it. These practices not only ensure compliance with FTC rules but also help maintain trust with your audience.
How can brands ensure their influencer campaigns comply with FTC guidelines?
To stay on the right side of FTC guidelines when running influencer campaigns, brands need to take a few essential steps. First, provide influencers with clear and straightforward instructions about disclosure rules. This includes how to properly label posts as sponsored and disclose any "material connections" they have with your brand. Getting this right not only ensures compliance but also fosters trust with their audience.
Next, it’s crucial to keep an eye on influencer content to ensure they’re following the rules. Use tools to review their posts before they go live and perform regular audits on published content to catch any slip-ups. If you spot a violation, act quickly to address it. This not only helps protect your brand’s reputation but also keeps you in line with FTC regulations.
