If someone promotes your business and has a connection to it, followers need to know. Clear disclosure protects them, the creator and you.
In this guide
- Any financial, employment, personal or family relationship with a brand needs to be disclosed.
- Free products and discounts count, not just cash.
- Use plain words such as "ad" or "sponsored," placed where people will see them.
- Businesses that work with creators should tell them to disclose and check that they do.
The Federal Trade Commission’s Endorsement Guides apply to anyone who recommends a product online. The core idea is simple: if there’s a connection between the person posting and the business, and followers wouldn’t expect it, it has to be disclosed.
What counts as a connection
The FTC’s guidance for influencers lists financial, employment, personal and family relationships. That covers:
- payment of any amount
- free products, discounts or perks, even if no post was requested
- being an employee or the owner’s relative
- affiliate commissions
Words that work
The FTC recommends simple, clear language such as:
- “ad” or “advertisement”
- “sponsored”
- “Thanks to [brand] for the free product”
It warns against vague labels like “sp,” “spon” or “collab,” or “thanks” or “ambassador” on their own.
Heads-up: Placement matters as much as wording. A disclosure buried in a bio, at the end of a long caption, behind a “more” link or in a pile of hashtags is easy to miss. Put it where people will see it with the endorsement.
Video and live streams
- Put the disclosure in the video itself, both said out loud and shown on screen, not only in the description.
- On photos and short stories, overlay the words and leave enough time to read them.
- In live streams, repeat the disclosure periodically for people who join late.
What your business should do
If you work with creators, employees or customers who post about you:
- Tell them in writing that they must disclose the relationship, and how.
- Don’t ask them to say things they don’t believe, or to make claims you can’t back up.
- Check their posts and follow up when a disclosure is missing.
The same honesty applies to reviews: see what the FTC’s rule on fake reviews means. If you run promotions with creators, our guide to running a legal giveaway covers the rules for prizes.
FAQ
Is the platform’s paid-partnership label enough?
The FTC says a platform’s disclosure tool may not be enough by itself. Use it alongside your own clear wording in the post.
Do my employees need to disclose when they post about us?
Yes. Working for a company is a material connection, so employees promoting their employer’s products should make that clear.
What about a customer we gave a free product to?
If they post about it, they should mention that they received it for free, even if you didn’t ask for a post.
General information for U.S. businesses, not legal advice. Platform features and rules change often, so check the FTC’s guidance and each platform’s current policies before you act.
