The FTC's Endorsement Guides require clear, unavoidable disclosure of any material connection, such as payment or free products, between a brand and someone endorsing it. Disclosures should use plain words like 'ad' or 'sponsored', placed where they cannot be missed, not buried in a bio or a hashtag. This is general information, not legal advice.
The Federal Trade Commission's Endorsement Guides, codified at 16 CFR Part 255 and revised in 2023, address how long-established consumer protection principles against deceptive advertising apply to modern endorsements, including social media and influencer marketing. The central concept is the material connection: any financial, employment, personal or family relationship between an endorser and a brand that consumers would not expect and that could affect how much weight they give the endorsement, including having received a free or discounted product.
The FTC is specific about how disclosures must be made: they need to be hard to miss, placed with the endorsement itself rather than buried in a bio, a 'more' link, or a block of hashtags. For images, disclosure text should be superimposed clearly on the image; for video, it should appear in the video itself, not only in a description, and should ideally use both visual and spoken cues; for live content, it should be repeated periodically throughout.
Plain, direct language works: terms such as 'ad', 'advertisement' or 'sponsored' are recommended, while vague abbreviations like 'sp' or 'spon', or ambiguous standalone words like 'thanks' or 'ambassador' used alone, are not considered adequate on their own. The FTC states plainly that it is the endorser's own responsibility to know the guides and disclose appropriately, alongside the advertiser's responsibility.
How to: 1) Identify any material connection, including free products, payment, or a personal relationship, between an endorser and your organization. 2) Require clear, plain-language disclosure, such as 'ad' or 'sponsored', placed directly with the endorsement. 3) For images, use on-image text; for video, disclose within the video itself, not only in a caption. 4) Never rely on vague terms or hidden placements as adequate disclosure. 5) Consult a qualified professional for specific compliance questions, since this is general information, not legal advice.
QUESTIONS
What is a material connection under FTC rules?
It is any financial, employment, personal or family relationship between an endorser and a brand that consumers would not expect and that could affect how they weigh the endorsement, including receiving free or discounted products, even without a formal request to mention them.
What words should be used to disclose a paid endorsement?
The FTC points to simple, direct terms such as 'ad', 'advertisement' or 'sponsored'. Vague abbreviations like 'sp' or 'spon', and ambiguous standalone words such as 'thanks' or 'ambassador', are not considered adequate on their own.
Where should a disclosure be placed?
With the endorsement itself, somewhere it is hard to miss, such as superimposed on an image or spoken and shown in a video, not tucked into a bio, a collapsed 'more' section, or buried among many hashtags.
Who is responsible for FTC-compliant disclosure, the brand or the endorser?
Both. The FTC states it is the influencer's own responsibility to be familiar with the Endorsement Guides and disclose appropriately, and the advertiser is also expected to ensure its endorsers are disclosing correctly. This is general information, not legal advice.
SOURCES
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