Working with Influencers: Disclosure Rules

The business is responsible too

In the US, the FTC's Endorsement Guides (16 CFR Part 255), revised in 2023, say advertisers are subject to liability for misleading statements made through endorsements "or for failing to disclose unexpected material connections between themselves and their endorsers". An advertiser "may be liable for a deceptive endorsement even when the endorser is not liable."

The FTC explains in The FTC's Endorsement Guides: What People Are Asking that the Guides themselves do not have the force of law, but practices inconsistent with them can lead to law enforcement action under Section 5 of the FTC Act.

In the UK, the ASA and CAP influencers' guide to making clear that ads are ads (fourth edition, October 2026, written with the Competition and Markets Authority) says the influencer, the brand and any agents involved are responsible for making sure content is properly labelled. So a missing label is your problem as well as the creator's.

What counts as a connection

Payment is the obvious case, but both regulators go much further. Section 255.5 of the FTC Guides says material connections can include a business, family or personal relationship, money, or "the provision of free or discounted products (including products unrelated to the endorsed product)", whether or not you require a post in return. Early access to a product, the chance of winning a prize or of appearing in media promotions can count too.

The ASA guide gives a similar list. It treats as "payment" any incentive, not only money, including:

• free products, services, trips, hotel stays or event invites, "whether requested or unsolicited";
• an exclusive discount or a commission, including affiliate links and codes;
• being a brand ambassador, shareholder or director;
• promoting a business owned by the influencer, their family or friends.

Sending a free product with no obligation to post does not get you off the hook: the ASA says it "still counts as 'payment' and needs to be disclosed." The FTC's Disclosures 101 for Social Media Influencers adds that tags, likes, pins and similar ways of showing you like a brand can be endorsements. Staff posting about their employer are connected too; our guide to reviews and testimonials covers employee and incentivised reviews.

How to disclose in the US

The Endorsement Guides require a connection the audience would not expect to be disclosed "clearly and conspicuously", which they define as "difficult to miss (i.e., easily noticeable) and easily understandable by ordinary consumers." A disclosure in a video should be in the video itself; one made both on screen and spoken is more likely to work.

Disclosures 101 turns this into practical advice:

• Put it with the endorsement. Disclosures are likely to be missed if they appear only on a profile page, at the end of a post or video, or behind a "more" link. Do not bury it in a group of hashtags.
• Use plain words. "Advertisement", "ad" and "sponsored" work, as does something like "Thanks to Acme brand for the free product". A hashtag such as #ad is fine but not necessary.
• Avoid vague terms such as "sp", "spon" or "collab", or "thanks" or "ambassador" on their own.
• Repeat it in live streams, so people who join part-way still see it.
• Use the same language as the endorsement.

The FTC's Q&A adds that "Ad:", "Paid ad" or "#ad" at the start of a post would likely be effective, and that "Sponsored by XYZ" is clearer than "Sponsored" alone.

How to disclose in the UK

The UK is stricter about wording. The ASA guide says labels "must explicitly call the content what it is" and recommends #Ad, #Advert, #Advertising, #Advertisement or #AdvertisementFeature; the hashtag itself is optional if the label is prominent and separate from other content.

It advises against labels that are common but, according to its research, unclear to users: Gifted, Affiliate, Collab, PR, "In partnership with", "Thanks to [brand] for making this possible" and simply tagging the brand. It also advises against "Sponsored", "Spon" and "Sp", which the ASA has previously ruled insufficient. Note the difference: some wording that may pass in the US is not recommended in the UK. If a campaign reaches both, use "Ad".

The label must be upfront, before people view the rest of the content: at the start of the caption, in the title or thumbnail, or on the image, whichever people see first. The guide expects disclosure throughout a relationship and in relevant content for 12 months after it ends.

The ASA enforces the CAP Code. The guide adds that the CMA and Trading Standards can take legal action, including fines, under consumer protection law, including the Digital Markets, Competition and Consumers Act.

Platform labels: Instagram, YouTube and TikTok

Each platform has its own label, and each requires creators to use it:

• Instagram. Meta's help page on the paid partnership label says its branded content policies require creators to use the label to tag the brand. The brand needs a professional account and approves the tag; until then the label shows without the brand's name.
• YouTube. Creators must tell YouTube about branded content by selecting the paid promotion option, which adds a disclosure label at the beginning of the video.
• TikTok. The TikTok branded content policy requires creators to turn on the commercial content disclosure toggle, which labels the post automatically. It counts affiliate links, promo codes and brand ambassador relationships as branded content.

These labels help, but neither regulator treats them as the whole answer. The FTC says the responsibility "rests with the influencer and the brand – not the platform" and that it is best to add your own disclosure. The ASA says a platform label may be enough if it is upfront and prominent; if not, add a label yourself.

If you also put money behind a creator's post as an ad, the platform's advertising rules apply on top; see our guides to Facebook and Instagram ads and TikTok ads.

The post still has to be true

A clear label does not fix a misleading message. Disclosures 101 says an influencer cannot talk about a product they have not tried, and if they thought it was terrible they cannot say it is terrific. Nor can they make claims that would need proof you do not have, such as that a product treats a health condition. Under the Guides, the advertiser is responsible for backing up objective claims made in endorsements.

So give creators the facts they may use and the claims they must not make, and let them describe their real experience in their own words.

What to put in the agreement

The Endorsement Guides say advertisers should give endorsers guidance on disclosure and accurate statements, monitor what they post, and act on problems. The FTC's Q&A says programmes should be scaled to the risk; a network selling health products may need more supervision than one promoting a fashion line. A written brief or contract can cover:

• the exact disclosure you expect, where it goes and in which language, for each platform and format;
• use of the platform's paid partnership or branded content label as well;
• the claims they may make and the ones they must not;
• how long disclosure continues, including after the arrangement ends;
• who checks posts after they go live, and what happens if a label is missing.

Keep a record of what was agreed, what was sent, and links to the posts. If creators make content you reuse on your YouTube channel, website or ads, check the agreement covers that use.

A checklist for each campaign

• Every creator who received money, free products, a commission or another benefit is told to disclose.
• The label is "Ad" or equally plain wording, upfront, in the post itself and on screen in video.
• The platform's own label is switched on.
• Claims are limited to what you can back up, and creators speak from real use.
• Someone reviews live posts and follows up on missing labels.
• Affiliate links and discount codes are disclosed like any other payment.

Frequently asked questions

Does a free product count if we did not ask for a post?

Yes. The FTC Guides say free or discounted products can be a material connection whether or not you require an endorsement, and the ASA guide says free items count as payment even with no obligation to post.

Is #ad enough?

Usually, if it is easy to see. The FTC says "#ad" or "Ad:" at the start of a post would likely be effective, and the ASA recommends #Ad. Placement matters as much as wording: at the start, not hidden among other hashtags or behind a "more" link.

Is "Sponsored" acceptable?

In the US the FTC lists "sponsored" among usable terms, and "Sponsored by XYZ" is clearer. In the UK the ASA advises against "Sponsored" because it has ruled it insufficient. For campaigns seen in both countries, use "Ad".

Is the platform's paid partnership label enough?

Not always. Instagram, YouTube and TikTok require their labels for branded content, but the FTC recommends adding your own disclosure, and the ASA says to add one if the platform label is not upfront and prominent.

Who is responsible if an influencer forgets to disclose?

Both of you can be. The FTC Guides say an advertiser may be liable even when the endorser is not, and the ASA guide says the influencer, the brand and any agents share responsibility for labelling.

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