FTC disclosure rules for creators

In the US, sponsored content is governed by the Federal Trade Commission. Three documents matter most for creators: the Endorsement Guides in 16 CFR Part 255, revised in 2023; the FTC's plain-language guide Disclosures 101 for Social Media Influencers; and the 2024 Trade Regulation Rule on the Use of Consumer Reviews and Testimonials. This page summarizes what they say. It is not legal advice, and if a contract or a claim worries you, ask a lawyer.

What a material connection is

The FTC's influencer guide tells creators to disclose when they have "any financial, employment, personal, or family relationship with a brand". Financial does not only mean money. Free or discounted products count, and you should disclose even if the brand did not ask you to mention that particular product. You should also disclose even if you believe your review is unbiased.

Tags, likes and pins can count as endorsements too. And if you are posting from outside the US, the rules still apply if the post will reasonably affect US consumers.

What you do not need: a statement that you have no relationship with a brand when you simply mention something you bought and like.

Where to put the disclosure

The disclosure goes with the endorsement, where it is hard to miss. The FTC's guide lists places that are likely to be missed: profile pages, the end of a post, and text hidden behind a "more" link. It also warns against burying a disclosure in a pile of hashtags or links.

The 2023 revision of the Endorsement Guides added a definition of "clear and conspicuous" and stated that a platform's built-in disclosure tool may not be adequate on its own. The FTC's FAQ adds that if an endorsement is made visually, the disclosure should at least be visual, if it is made audibly it should at least be audible, and doing both at once is more likely to be clear. For YouTube, it says a disclosure in the description alone is not enough.

What words to use

Plain language works. The FTC's examples include "Thanks to Acme brand for the free product", and the terms "ad", "advertisement" and "sponsored". On platforms with little space, "AcmePartner" or "Acme Ambassador" may work. Hashtags such as #ad are optional; the point is that the words are clear. Vague terms like "sp", "collab", or "thanks" and "ambassador" on their own are not. Write the disclosure in the same language as the endorsement.

What you cannot say, disclosed or not

Disclosure does not make a false claim legal. The FTC's influencer guide says you cannot talk about experiences with a product you have not tried, you cannot say a product is great if you thought it was terrible, and you cannot make claims that would need proof the advertiser does not have. Its example is scientific proof that a product treats a health condition. The FTC's FAQ says an endorser can be liable when what they say is not consistent with their own experience, or for misleading or unsubstantiated statements.

Results claims carry an extra rule. If you say you lost 20 pounds in two months and the advertiser cannot show that is typical, the ad must make clear what results people can generally expect. The health and fitness UGC rules page covers this in detail.

What changed in 2023

The FTC announced the revised Endorsement Guides on 29 June 2023. The changes, in the FTC's summary:

• A new principle on procuring, suppressing, boosting or editing consumer reviews in ways that distort what shoppers think.
• Coverage of incentivized reviews, employee reviews and fake negative reviews of competitors.
• A definition of "clear and conspicuous", and a statement that platform disclosure tools may not be enough.
• A broader definition of endorsement that includes fake reviews, virtual influencers and social media tags.
• A fuller explanation of the liability of advertisers, endorsers and intermediaries such as agencies.
• Advertising directed at children flagged as an area of special concern.

The companion FAQ, FTC's Endorsement Guides: What People Are Asking, gained 40 new questions at the same time.

The 2024 rule on fake reviews and testimonials

On 14 August 2024 the FTC announced a final rule banning fake reviews and testimonials. Unlike the Guides, it is a rule, which lets the FTC seek civil penalties against knowing violators. The FTC said the rule takes effect 60 days after publication in the Federal Register. It prohibits:

• Reviews or testimonials from people who do not exist, including AI-generated ones, or who did not have real experience with the business or product, or that misrepresent their experience, where the business knew or should have known.
• Paying or otherwise rewarding people for reviews that express a particular sentiment, positive or negative.
• Insider reviews and testimonials that do not clearly disclose the insider's connection.
• Company-controlled sites that claim to review a category independently.
• Suppressing negative reviews through threats or intimidation.
• Buying or selling fake indicators of social media influence, such as bot followers or views, for a commercial purpose.

Two of these matter directly for UGC. A creator who has never used a product cannot be presented as a customer who has. And a creator should never buy followers or views to look bigger to brands.

UGC that the brand posts

When a brand runs your video as an ad from its own account, it is the brand's ad, and the brand is responsible for it. But the FTC's FAQ also says endorsers can be liable for what they say, and the honesty rules apply to you whoever posts the video. If the video presents you as an ordinary customer, the paid relationship should not be hidden. When an ad runs from your handle, through Spark Ads or partnership ads, a disclosure in the video protects both of you. The usage rights page covers those formats.

A checklist for every paid post

1. Have I used the product, and is everything I say true for me?
2. Is the disclosure in the video, on screen and spoken?
3. Is it in the caption before the cut?
4. Have I made any claim the brand has not shown me support for?
5. If I mention results, are they typical, or is the typical result stated?

Every creator who works with Peptide AI is asked to disclose the partnership in line with these rules. If you want to apply to create for Peptide AI, read the creator ground rules first. The basics of the job are on how to become a UGC creator.