Social media influencers have a powerful impact on consumer decisions, but with that influence comes responsibility.
The Federal Trade Commission (FTC) requires influencers to be transparent about material connections to prevent deceptive advertising practices.
Failing to comply can result in monetary penalties and damage credibility.
We’ll discuss that in a second.
The point is that managing influencer partnerships while ensuring proper disclosure can be challenging. This guide explains all FTC requirements to help you stay compliant and avoid legal repercussions.
In this blog, we’ll cover:
- FTC guidelines and disclosure requirements
- When and how to disclose brand relationships
- Why FTC compliance matters
- Real-world FTC enforcement cases
P.S. Struggling to manage influencer compliance? Handling disclosure requirements while coordinating influencer partnerships is challenging, to say the least. inBeat Agency simplifies the process with data-driven influencer marketing. We help you connect with curated creators, execute measurable campaigns, and stay FTC-compliant. Book a free strategy call now!
TL;DR:
- Influencers must disclose brand relationships – Any material connection (payments, gifts, sponsorships) must be clearly stated.
- FTC penalties for non-compliance – Fines can reach $51,744 per violation, and legal actions have been taken against brands and influencers.
- Clear and visible disclosures are required – Place them where they are easy to see/hear; vague hashtags (#partner) or hidden mentions are not enough.
- Applies to all content formats – Instagram posts, videos, livestreams, podcasts, and even AI-generated content must follow FTC disclosure rules.
- Brands are also responsible – Companies must ensure influencers comply and may face penalties if violations occur.
- Real-world FTC enforcement cases – Google, Teami, and CSGO Lotto faced significant penalties for deceptive advertising and undisclosed endorsements.
- International advertising laws matter – Influencers marketing globally must also comply with country-specific regulations like those in the UK, Canada, and Australia.
- Best practices for compliance – Regularly review FTC guidelines, document all influencer agreements, and work with vetted partners to avoid legal risks.
What Are FTC Guidelines for Influencers?
FTC guidelines for influencers are essential rules set by the Federal Trade Commission to ensure transparency in advertising. The goal is to protect ordinary consumers from deceptive advertising practices. That’s why these endorsement guidelines require social media influencers to disclose material connections, such as financial relationships or brand-sponsored content, in their influencer posts.
Proper disclosure helps prevent false claims, fake reviews, and deceptive endorsement practices. Compliance with these advertising standards is crucial in the influencer marketing industry to maintain trust, avoid civil penalties, and ensure content guidelines align with consumer protection law.
Speaking of deceptive endorsements, let’s first understand:
What Is an Endorsement?
An endorsement in influencer marketing refers to any form of brand or product endorsement. Basically, anytime a social media influencer expresses approval, preference, or recommendation for a brand. This includes:
- Consumer reviews
- Testimonials in advertising
- Sponsored posts
- Affiliate links
- Brand-sponsored content
- And more
Even small actions like likes, tags, and pins on a social media network can be considered endorsements under FTC guidelines. Like so:
Since these social media posts can influence ordinary consumers, influencers must follow endorsement disclosure rules.
Now, let’s clarify another term you’ll likely meet a lot if you’re researching FTC guidelines for influencers: material connection.
What Is Material Connection?
A material connection is any relationship between a social media influencer and a brand that could impact consumers – even in terms of online reviews. This term includes financial relationships such as payments, affiliate links, and sponsorships, as well as employment ties or personal relationships with a product manufacturer.
Even free or discounted products qualify as an unexpected material connection and require proper disclosure to comply with endorsement guides and prevent deceptive advertising practices.
Pro tip: Read more about creating compliant product seeding campaigns. And if you want to kickstart you’re campaign faster, with vetted creators, we’re always here to lend a hand.
When Are Influencers Required to Disclose Brand Relationships?
Disclosures are necessary in the following cases:
- Anytime there is a material connection to a brand. Never assume that followers already know about an influencer’s brand partnerships.
- Even if a brand does not ask for a mention, disclosure is still required if an influencer receives something of value.
- Disclosures apply even if the content is posted outside the U.S. but affects U.S. consumers.
Note: If an influencer buys a product on their own and genuinely likes it, no disclosure is needed.
For example, in this post, the influencer shows the gym’s name in the background – but it’s not a sponsored post per se.
Why FTC Compliance Is Critical for Influencers and Brands
FTC compliance is essential for the following reasons:
1. Protecting Consumer Trust
As we already explained, transparency in influencer marketing campaigns prevents deceptive endorsement practices. But it also builds credibility. When influencers disclose material connections, they help ordinary consumers make informed purchasing decisions based on honest opinions. Hidden incentives taint this relationship between creators and their audience.
2. Avoiding Legal Consequences
Non-compliance with FTC influencer guidelines can result in monetary penalties, lawsuits, and brand reputation damage. The FTC actively monitors social media posts and takes enforcement actions against influencers who engage in deceptive or false advertising practices.
In November 2023, the FTC sent warning letters to several social media influencers and the trade groups that paid them. Again, there’s an obvious need for clear and conspicuous disclosures of material connections when endorsing products. The letters highlighted that violations could lead to federal injunctions and civil penalties of up to $50,120 per violation.
Additionally, in August 2024, the FTC finalized a rule banning the creation or sale of fake reviews, including those generated by AI. This rule also targets deceptive practices such as buying fake followers or views to misrepresent social media influence. Violations can result in fines of up to $51,744 per incident.
3. Keeping Up with Industry Standards
Platforms like Instagram, TikTok, and YouTube are implementing stricter rules on brand-sponsored content and require adequate disclosure for product endorsements. Make sure your content is compliant with these changing advertising standards to avoid trade associations or government agency crackdowns.
4. Ensuring Ethical Advertising
Following endorsement guidelines is not just about legality—it promotes fair methods of competition and prevents deceptive practices. Misleading consumer reviews, fake reviews, and false claims can lead to civil penalties, but more importantly, they damage your long-term credibility in the influencer marketing industry.
5. Strengthening Brand-Influencer Partnerships
Brands that work with compliant influencers reduce potential liability and improve their influencer marketing campaigns’ success. In fact, proper disclosure in influencer partnerships leads to better long-term collaborations, increases engagement rates, and aligns with digital advertising best practices. That’s a triple win for your company.
What Are the FTC Disclosure Requirements? Do’s and Don’ts
Proper disclosure of influencer content is key to complying with FTC influencer guidelines and avoiding civil penalties.
Here’s a breakdown of the best practices and common mistakes:
✅ Do’s: Best Practices for FTC Compliance
- Clearly disclose brand relationships in a way that’s easy to see and understand
- Place disclosures where they are hard to miss. Place the disclosure with the endorsement, not in hidden sections like profiles or "About Me" pages.
- Use simple and clear language like “Sponsored,” “Ad,” or “Thanks to [Brand] for the free product.”
- Ensure disclosures are present on all platforms, including Instagram, TikTok, YouTube, and podcasts.
- Repeat disclosures periodically in live streams so all viewers receive the information.
- The disclosure must be in the same language as the endorsement. If the content is in Spanish, French, or any other language, the disclosure must match.
❌ Don’ts: Common FTC Compliance Mistakes
- Don’t bury disclosures in hashtags or fine print (e.g., "#partner" mixed in with multiple hashtags).
- Avoid using vague or unclear terms like “collab,” “sp,” or “ambassador” without clarification.
- Don’t assume that platform disclosure tools (like Instagram’s “Paid Partnership” tag) are enough—manual disclosure is still necessary.
- Never endorse a product that hasn’t been personally used or make misleading claims about its performance.
FTC Guidelines for Different Types of Content
In the previous section, we explained that endorsement disclosure should be clear and easy to notice, regardless of the social media network or content type. The FTC requires disclosures to be visible where audiences can see or hear them.
Now let’s see how to ensure proper disclosure across different formats:
1. Photos & Static Posts
For platforms like Instagram, Facebook, and LinkedIn, where influencers share static images or carousel posts, disclosures should be placed within the caption in a way that is hard to miss. Avoid burying disclosures under a list of hashtags or within a long paragraph.
Here’s a great example of a content strategist, Diandra Escobar, who is also a SEMrush ambassador. She’s mentioned her connection with the SEO company three times in one post to make it clear:
More importantly, mentioning the partner brand this many times also increases brand recall.
2. Videos
Video content requires both audio and visual disclosure since some viewers may watch without sound while others may not notice on-screen text. The disclosure must appear within the video itself, not just in the video description or pinned comments.
3. Livestreams
Unlike pre-recorded videos, live streams require disclosures to be repeated periodically since viewers join at different times. Simply mentioning the brand partnership once at the beginning isn’t enough.
4. Podcasts & Audio Content
Since podcasts are audio-based, disclosures must be spoken aloud and placed where listeners will hear them clearly. The FTC endorsement guides recommend stating the disclosure at both the beginning and end of an episode to ensure all listeners are aware.
5. Other Formats
For temporary content like Instagram Stories, Snapchat, and TikTok, disclosures should be superimposed on images or videos to ensure visibility before the content disappears. The text should be large enough to read and remain on screen long enough for viewers to process it.
On character-limited platforms like Twitter, using terms like “[Brand] Ambassador” or “[Brand] Partner” ensures compliance.
For example, influencer Tyeisha Shardae followed FTC guidelines by clearly disclosing her Paid Partnership with Lifetime on TikTok:
What are FTC Requirements for AI-Generated Content
When sharing AI-generated content on social media, apply “double disclosures.” If an influencer marketing campaign features AI-created material, clearly state both that it is sponsored content and that it was generated by AI.
Additional Things Influencers Should Keep in Mind
Beyond following endorsement disclosure rules, influencers must ensure their influencer content remains compliant with other advertising principles and legal requirements.
Key factors to consider are:
1. Always Be Honest
Endorsements should reflect real experiences with the product. Avoid making false claims or promoting health claims without proof. Influencers should provide an honest opinion rather than overstate a product’s benefits.
2. Know the Local Laws
International markets have their own advertising rules, and influencers must comply with them when promoting to global audiences. Brands targeting consumers outside the U.S. may require influencers to follow additional legal guidelines.
Here are some examples of country-specific regulations:
- Canada: Influencers must follow the Competition Act, enforced by the Competition Bureau.
- United Kingdom: The Advertising Standards Authority (ASA) and Competition and Markets Authority (CMA) regulate influencer marketing in the UK.
- Australia: The Australian Competition and Consumer Commission (ACCC) provides guidance on influencer advertising compliance in this country.
3. Be Aware of Other Industry-Specific Rules
Certain industries have stricter advertising guidelines, especially when endorsements involve financial relationships, health claims, or legal services. Products like weight loss supplements, financial investments, and medical treatments require endorsement disclosure that follows consumer protection law to prevent deceptive endorsement practices.
For example, the U.S. Food and Drug Administration (FDA) regulates health-related claims. This requires brands and influencers to provide scientific evidence for products marketed as treatments or cures to avoid false advertising penalties.
Moreover, platforms like TikTok, Instagram, and YouTube enforce their own advertising policies for brand-sponsored content. This means marketing professionals must review and follow platform-specific rules.
FTC Influencer Fines: Penalties for Non-Compliance
Influencers who fail to meet disclosure requirements can face monetary penalties and legal action. The FTC can impose civil penalties of up to $51,744 per violation on those who misrepresent, fail to disclose, or provide inadequate disclosures about sponsored content or material connections in their posts.
Pro tip: Both brands and influencers are held accountable for ensuring proper disclosure. The FTC emphasizes that advertisers should make a reasonable effort to instruct social media partners on clearly and conspicuously disclosing material connections, especially if deceptive practices could cause consumers harm. Advertisers also have a responsibility to monitor their influencer partners for compliance.
That brings us to the next point:
Best Practices for Staying FTC Compliant
To stay compliant, businesses and influencers must take proactive steps to ensure transparency in advertising.
Below are key best practices to maintain compliance and prevent legal repercussions.
- Conduct due diligence on influencers: Before partnering with an influencer, brands should verify their past endorsements, engagement rate, and history of FTC compliance. Working with influencers who have a record of inadequate disclosures or deceptive advertising practices can lead to more content-related problems and, therefore, FTC monetary penalties.
- Document all agreements and disclosures: Maintain detailed records of influencer contracts, disclosure terms, and financial relationships to prove compliance in case of audits.
- Regularly review FTC guidelines and updates: FTC disclosure guidelines evolve as social media networks introduce new advertising features. You should frequently check for changes in endorsement guides to avoid FTC influencer fines and potential liability from non-compliance.
P.S. Feeling overwhelmed by the process? Don’t worry! Experienced influencer marketing agencies can help you find the right influencers, execute campaigns, and stay compliant with FTC guidelines so you can focus on scaling your brand.
Real-World Examples of FTC Crackdowns on Influencers
Now, let’s explore some real cases where the FTC took action against influencers and brands for failing to disclose material connections.
1. Google and iHeartMedia
The FTC and state attorney general took legal action against Google LLC and iHeartMedia, Inc. for broadcasting nearly 29,000 deceptive endorsements about the Google Pixel 4 phone. Radio personalities were paid to promote the phone with scripted positive reviews without them having actually used the product.
As a result, Google and iHeartMedia faced $9.4 million in penalties and were barred from similar false advertising practices.
“Google and iHeartMedia paid influencers to promote products they never used, showing a blatant disrespect for truth-in-advertising rules,” said Bureau of Consumer Protection Director Samuel Levine. “
2. Teami, LLC
The FTC sued Teami, LLC in March 2020 for deceptive advertising practices and failing to ensure adequate disclosure. The company falsely claimed that its Teami 30-Day Detox Pack could aid weight loss, while other teas were marketed as treatments for cancer, clogged arteries, migraines, colds, and flu—without reliable scientific evidence.
Teami also paid well-known social media influencers to promote its products without properly disclosing their financial relationship with the brand. As a result, the FTC ordered Teami to return over $930,000 to misled consumers. This example highlights both the legal repercussions of false health claims and undisclosed influencer partnerships.
3. CSGO Lotto, Trevor Martin, and Thomas Cassell
The FTC took action against Trevor Martin and Thomas Cassell for deceptive advertising practices after they promoted CSGO Lotto, an online gambling site, without disclosing their ownership. They also paid other influencers to endorse the platform without requiring proper disclosure in their social media posts.
The FTC’s complaint alleged that their promotions misled ordinary consumers into believing the endorsements were independent. As a result, the FTC settlement order now requires them to clearly disclose any material connections in influencer marketing campaigns.
Stay FTC-Compliant and Scale Your Influencer Campaigns with inBeat Agency
Understanding FTC disclosure requirements is essential for social media influencers and brands to maintain transparency in advertising and avoid FTC influencer fines. These endorsement guidelines protect consumer trust, prevent legal repercussions, and ensure compliance with advertising standards in influencer marketing campaigns.
Key Takeaways
- Influencers must disclose material connections in all social media posts promoting a product or service.
- Disclosures should be clear, visible, and easy to understand, avoiding hidden or vague wording.
- The FTC can impose monetary penalties of up to $50,120 per violation for deceptive advertising practices.
- Influencers promoting globally must follow local advertising laws alongside FTC disclosure guidelines.
If you want to streamline influencer partnerships while ensuring FTC compliance, inBeat Agency is here to help. From finding vetted influencers to executing data-driven campaigns and ensuring proper disclosure, inBeat takes the hassle out of influencer marketing. Book a free strategy call today!
