Influencer Law, Social Media Compliance

Last Updated: January 2026

Key Highlights

1. What the FTC Influencer Disclosure Rules Require
2. What Counts as a “Material Connection”
3. What “Clear and Conspicuous” Means (and What It Doesn’t)
4. Where to Put Disclosures (Platform-by-Platform)
5. Common Disclosure Mistakes (and How to Fix Them)
6. Brand Responsibilities (Yes: Brands Can Be Liable)
7. Enforcement Trends (Including AI-Generated Reviews)
8. FAQs
9. Disclosure Checklist

Quick Take

If you post sponsored content, affiliate promotions, or reviews connected to a brand, the Federal Trade Commission (FTC) expects you to clearly disclose that relationship.

The standard is simple: the disclosure must be clear and conspicuous: meaning it is difficult to miss and easy to understand for ordinary consumers.

This guide explains what the FTC requires, where disclosures should appear across major platforms, and what brands and influencers should do to reduce enforcement risk.

1) What the FTC Influencer Disclosure Rules Require

The FTC requires disclosure when an endorsement is connected to a brand relationship that could affect how the audience evaluates the endorsement.

In practice, you should disclose when your content involves:

• Paid sponsorships
• Free or gifted products
• Affiliate links or commission-based promotions
• Discount codes tied to compensation or affiliate earnings
• Trips, experiences, tickets, or services provided by a brand
• Employment, ownership, or personal relationships that impact credibility

The FTC’s own influencer resource (“Disclosures 101 for Social Media Influencers”) is a strong baseline reference for when and how to disclose. For a quick overview, see: FTC Guidelines for Influencers: Stay Compliant and Build Trust.

2) What Counts as a “Material Connection”?

A “material connection” is anything that could influence an endorsement—and anything that a reasonable consumer would want to know before relying on the recommendation.

Common material connections that require disclosure

Payment: cash, flat fee, or ongoing sponsorship
Free products: gifted items, PR packages, “free trial,” or services
Affiliate earnings: commissions, revenue share, referral payouts
Perks: brand trips, tickets, hotel stays, experiences
Business relationships: employment, ownership, partnership
Personal relationships: family/friend relationships tied to promotion

Practical rule:
If you’d answer “yes” to “Would my audience care that I received something of value?” you should disclose.

3) What “Clear and Conspicuous” Means (and What It Doesn’t)

Disclosures must be immediately noticeable and understandable. The FTC’s emphasis is not on technical compliance, but on whether an ordinary consumer would actually see and understand the disclosure.

Clear disclosure language (recommended)

Use plain-language statements like:

• “Ad”
• “Sponsored”
• “Paid partnership with [Brand]”
• “I earn a commission from this link”
• “Gifted by [Brand]” (when true)

High-risk disclosure language (avoid)

These often fail because they’re vague, confusing, or easy to miss:

• “Thanks [Brand]”
• “Collab”
• “Partner”
• “#sp”
• Disclosures buried under a “more” button
• Disclosures hidden inside a long hashtag block

4) Where to Put Disclosures (Platform-by-Platform)

Placement matters. A disclosure is not effective if audiences have to hunt for it.

Instagram Posts / Reels

Best practice for compliance:

• Put “Ad” / “Sponsored” in the first lines of the caption
• Consider using the platform’s paid partnership tools, but don’t rely on them alone
• If it’s spoken content, consider verbal disclosure as well

Instagram Stories

Disclose on the same frame as the endorsement. Make sure it is:

• Large enough to read
• High contrast
• On screen long enough to notice

TikTok

• Include disclosure in caption and ideally on-screen
• If the endorsement is spoken, speak the disclosure too

YouTube

• Include a verbal disclosure early
• Add disclosure in the first lines of description
• Use platform tools, but supplement with clear language

Livestreams

• Disclose at the start
• Repeat regularly (audiences join mid-stream)

5) Common Disclosure Mistakes (and How to Fix Them)

Mistake #1: Disclosing too late

Fix: Put “Ad” / “Sponsored” at the beginning of the caption or within the first moments of the video.

Mistake #2: Using vague wording

Fix: Use plain language (“Ad,” “Sponsored,” “I earn commission,” “Gifted”).

Mistake #3: Disclosing only once in a multi-post campaign

Fix: Disclose on every sponsored post, story, video, and live segment.

Mistake #4: Treating gifted items as “not sponsored”

Fix: If you received value and the product is featured, disclose.

Mistake #5: Assuming the influencer is solely responsible

Fix: Brands can be responsible too (see next section).

6) Brand Responsibilities (Yes: Brands Can Be Liable)

Brands and agencies should treat disclosure compliance as a system, not a suggestion.

Brands should:

• Provide written disclosure guidance
• Include disclosure terms in influencer agreements
• Monitor posts for compliance (especially early in campaigns)
• Correct noncompliant posts quickly
• Maintain records (contracts, briefs, review logs)

Influencers should:

• Confirm whether the relationship is paid, gifted, or affiliate-based
• Ask for disclosure requirements in writing
• Use consistent, clear disclosure language

7) Enforcement Trends (Including AI-Generated Reviews)

In the current environment, brands and influencers should pay close attention to:

• Undisclosed endorsements
• Fake or manipulated reviews
• Misleading testimonials
• AI-generated review content that appears authentic but lacks disclosure
• Incentivized reviews without clear explanation

This trend is especially relevant as more creators and brands use AI to generate scripts, testimonials, and “review-like” content. See: What the FTC’s Crackdown on AI-Generated Reviews Means for Influencers and Brands.

For an individual consultation on disclosure regulations for your brand, contact our team.

8) FAQs

Do I need to disclose gifted products?

Yes—often. If you received something of value and your content could reasonably be influenced by that benefit, a disclosure is typically required.

Do affiliate links require disclosure?

Yes. If you earn a commission (or other benefit) from a link, your audience must be informed in plain language.

Is “Paid Partnership” enough on Instagram?

It can help, but it is not always sufficient on its own. A clear written or verbal disclosure is still recommended to ensure the disclosure is noticeable.

Can I disclose at the end of a caption?

It is risky. Disclosures should appear where consumers will see them before engaging with the endorsement—ideally at the beginning.

What happens if I don’t disclose?

Noncompliance can lead to FTC enforcement actions, reputational damage, contract disputes, and platform consequences—especially for repeat violations.

Do brands have legal exposure if an influencer fails to disclose?

Yes. Brands can be responsible if they fail to instruct, monitor, or correct influencer disclosure issues.

9) Disclosure Checklist

Use this checklist before posting:

✅ Did I receive money, product, perks, commission, or any benefit?
✅ Would an ordinary consumer want to know about that relationship?
✅ Is the disclosure clear (plain language like “Ad” or “Sponsored”)?
✅ Is it conspicuous (easy to see/hear, not buried)?
✅ Is it close to the endorsement (not hidden at the end)?
✅ Did I disclose on every post/story/video in the campaign?

---

Author
Ethan Wall, Esq.
Founding Attorney, The Social Media Law Firm l Nationally Recognized Social Media Lawyer

Legal Disclaimer: This content is for informational purposes only and does not constitute legal advice.

---

For more legal tips, give us a follow on Instagram, TikTok, Linkedin, or check out our YouTube Channel.

Subscribe to The Social Media Lawcast on Spotify Podcasts.