FTC influencer guidelines, explained: Tips for engaging influencers

Running influencer marketing campaigns that are engaging and FTC-compliant is a tricky balance. You want your influencer partnerships to feel natural and engaging. But at the same time, brands and influencers must be upfront about partnerships to avoid hefty penalties. Plus, keeping up with new marketing trends and shifting guidelines across different platforms only adds to the challenge.

In this article, we’ll break down the FTC influencer guidelines, why they matter and the branded content policies for each major social media network. We’ll also share tips on how to fit these guidelines smoothly into your strategy so your content stays compliant, authentic and on-brand.

Please note: The information provided in this article does not, and is not intended to, constitute formal legal advice. Please review our full disclaimer before reading any further.

FTC guidelines for influencers and content creators

In August 2023, the Federal Trade Commission introduced updated guidelines for online reviews and social media endorsements. These guidelines apply whenever an influencer or content creator has a “material connection” with a brand, defined as a financial, personal, family or employment relationship.

In other words, if a content creator is paid to talk about a product, receives a free item or gets a discount, they must make it clear in their posts. These guidelines ensure endorsements are honest and transparent, so it’s obvious when an influencer has a brand connection.

If an influencer wants to share about something they bought and liked, they can do so if there is no relationship with the brand. But whenever there is a material connection, these rules apply, and it’s both the brand and influencers’ responsibility to make sure their followers know.

FTC influencer guidelines do’s and don’ts

Here are some quick FTC compliance do’s and don’ts for influencer brand partnerships.

DO:

• Be crystal-clear. If an influencer received a free product, discount or any other benefit, they must disclose it—even if their review is genuine and unbiased.
• Place the disclosure up front, with the endorsement message, where followers will immediately see it.
• Match the disclosure to the media format. Consider how consumers view the content and match the disclosure accordingly– for example, if the endorsement is in a live stream, the disclosure should be repeated periodically so that even viewers who only pop in for a portion of the stream will view or hear the disclosure.
• Keep it simple. Use direct language like “Thanks to [brand] for the free product,” “Gifted by [Brand],” or “In partnership with [Brand] or hashtags like #ad or #sponsored.
• Use the same language as the endorsement and avoid jargon like “comped” or “ambassador” that might confuse followers.

DON’T:

• Assume an influencer’s followers already know about their brand relationships.
• Hide disclosures by putting them in a spot that requires extra clicks, like in a profile, in an “about me” section or at the end of the post.
• Mix with other hashtags (e.g., #beauty #ad #faveproducts”) or links where your audience might miss it.
• Use vague terms or unclear abbreviations like “sp,” “spon” or “collab.” Stick to terms like “ad” or “sponsored.”
• Publish endorsements from influencers who haven’t tried, disliked or can’t verify the product or service. Only share genuine experiences.
• Publish endorsements that claim results for which you don’t have evidence. Claims of health benefits or results need to be supported by proof.
• Incorporate influencer endorsements into any consumer review average ratings or lists without adequate disclosure.

Following these simple do’s and don’ts will help brands and influencers maintain transparency, build trust with their audiences and stay on the right side of the FTC rules.

Why the FTC influencer guidelines are important

The FTC guidelines for influencers aren’t just a legal formality. They keep branded content truthful and free from hidden motives so followers get the whole picture and can properly weigh the value of an influencer endorsement. Here’s why following them matters:

Building trust with your audience

Imagine a friend recommends a restaurant, and later, you find out they received a free meal to talk it up. It would likely make you second-guess their glowing review, right? This is the premise behind the FTC guidelines. By revealing brand connections upfront, consumers can make more educated choices, and influencers and brands can maintain credibility with their audiences.

According to our Q4 Pulse Survey, 59% of social media users say that the #ad label doesn’t affect their decision to purchase a featured product. But it makes a difference among specific demographics. A third (33%) of Gen Z respondents said it makes them more likely to buy, while about a quarter (26%) of Baby Boomers are less likely to purchase after seeing the #ad label.

These insights show that, for most social media users, adding disclosures doesn’t negatively impact their content-viewing experience or buying behavior. Many younger consumers appreciate disclosed partnerships and see them as credible endorsements.

Keeping up with evolving influencer trends

Influencer marketing is constantly evolving, so the rules around influencer relationships must keep pace. For example, virtual influencers complicate FTC guidelines since they aren’t real people. Human influencers can have a personal experience with a product or service, but virtual influencers can’t.

FTC guidelines protect consumers by mandating that any paid relationship is clearly disclosed regardless of who or what is endorsing a product. This way, consumers are always in-the-know, no matter how influencer marketing shifts.

Consequences of non-compliance

Both influencers and brands face serious consequences—like fines, legal fees and other penalties—if they don’t properly disclose partnerships. For example, in 2020, a tea company agreed to pay a $1 million settlement after the FTC found it had misled consumers by not disclosing payments to influencers promoting its products.

There is also the risk of consumer backlash. In 2023, the FTC issued warning letters to TikTok and Instagram health influencers who failed to disclose paid endorsements for artificial sweeteners and sugary foods. The resulting scandal eroded trust with followers, leading to negative comments and press.

Influencer marketing regulations by network

Each social network has its own approach to disclosure requirements, and brands and influencers need to understand the nuances of each one. Remember, however, that using a platform’s built-in disclosure tools doesn’t guarantee compliance with the FTC’s rules. Here’s a quick guide to keeping content compliant across Instagram, Facebook, YouTube and more.

Instagram

According to their branded content policies, Instagram creators can only post branded content using the branded content tool, which applies a “Paid Partnership” label on posts, Stories, Reels and live content. This label indicates when a brand or business has influenced the content in exchange for payment or gifts. Creators must use this tool for sponsored content to maintain transparency with their followers.

For Instagram posts, disclosures should be placed near the start of the caption, above the “more” button, so they’re visible without additional clicks. Avoid burying the disclosure among hashtags or in a lengthy caption. For Instagram Stories, overlay the disclosure directly onto the image or video and keep it on screen long enough for viewers to read. These practices make the brand partnership instantly evident to the influencer’s audience.

TikTok

On TikTok, creators must use the platform’s “commercial content disclosure” toggle for any branded content, which automatically adds a “paid partnership” label to videos or LIVEs. This label immediately identifies the content as sponsored or part of a brand collaboration. TikTok also requires creators to obviously mention the promoted product or service in the content so viewers don’t have to check the creator’s profile or click links to understand the endorsement.

FTC guidelines recommend that video disclosures be audible, visible and placed at the start of the content. For livestreams like TikTok LIVE, it’s also best to repeat the disclosure periodically to tell any viewers who join late about the brand partnership.

Facebook

Since Meta owns Instagram and Facebook, they follow the same branded content policy. This requires creators on both networks to use the branded content tool for sponsored posts, even if the product or service they endorse was gifted.

When disclosing a partnership in a Facebook post or caption, use plain language like “Thank you [Brand] for the free service” or hashtags like #ad or #sponsored near the beginning of the caption. Avoid vague terms or hashtags like #ambassador or #partner, as these don’t meet FTC standards.

YouTube

Putting #ad in the video description isn’t enough. On YouTube, creators must disclose paid promotions, endorsements or product placements directly within their videos. To comply, they must check the “paid promotion” box in YouTube Studio’s video editing settings, which adds a disclosure message to the first 10 seconds of the video.

Disclosures should be audible and visible for video content and included at the beginning of the video. For longer videos, creators should consider adding another disclosure before the product endorsement so the brand affiliation is clear throughout.

X (formerly Twitter)

According to X’s paid partnerships policy, creators need to disclose when a post is sponsored. The simplest way to do this is by adding #ad directly to the post so followers immediately know it’s branded content. With X’s character limits, disclosures should be kept short, but confusing abbreviations or acronyms should be avoided.

The post should also directly mention the product, service or call-to-action without requiring viewers to click on links for additional information. If there’s room, consider adding terms like “[Brand] Partner” or “[Brand] Ambassador” to make the brand connection extra clear.

How to implement FTC influencer guidelines in your social strategy

Keeping your influencer strategy FTC-compliant is more straightforward than it sounds. Setting clear expectations and using the right tools will protect your brand and build trust with your audience. Here’s how to make it happen.

Thoroughly research and vet potential influencers

Before engaging influencers, ensure their values and style align with your brand’s voice and audience. Review past content for consistency and check for any red flags (like a lack of brand partnership disclosures).

Sprout Social Influencer Marketing streamlines this process by providing insights into influencer metrics, audience demographics and engagement rates, helping marketers make data-backed decisions.

Set clear expectations around compliance

The FTC holds brands accountable for influencer compliance, so set explicit guidelines from the start. Include FTC compliance clauses in contracts and provide influencers with guidelines on disclosure requirements and acceptable content practices, like the FTC’s Disclosures 101 for Social Media Influencers.

Sprout Social Influencer Marketing’s Creator and Collaborator portals make organizing communication, feedback and approvals in real-time easy, to ensure all of your influencer marketing campaigns are both compliant and on brand.

Use pre-approval processes for time-sensitive content

With fast-moving content like Instagram Stories and TikTok LIVEs, a pre-approval process can keep everything legally compliant and brand safe without slowing down content production.

For example, you could have your influencers submit a draft of each Instagram Story slide with the disclosure (#ad or “Sponsored by [Brand]”) in advance. Hosting a live stream? You might have influencers share a brief outline of talking points, noting where they’ll make brand disclosures (e.g., “This is a paid partnership” at the start and every five minutes).

Follow best practices for different content types

Regardless of the social media network, keep the following content guidelines in mind:

• Photos and Static Posts: Make disclosures clear and upfront. Don’t bury them in a sea of hashtags. Use simple terms like #ad at the start of the caption so viewers see it immediately. Also, consider using a text overlay on the image itself in addition to the caption disclosure, especially on platforms where the image grabs attention first.
• Videos: Include audio and on-screen disclosures within the video, not just in the description. This way, all viewers can easily spot the brand partnership—even if they’re watching with the sound off. Repeating disclosures before brand mentions in longer videos helps all viewers understand the content is sponsored. Even if they skip around or don’t watch the entire thing.
• Livestreams: During live broadcasts, repeat the disclosure periodically to notify new viewers. This is especially important for longer streams where audiences may join and leave throughout. For sessions with multiple product demos, mention the disclosure at the start and end of each demo so everyone tuning in gets the context.

Streamline your workflow with an influencer marketing platform

Managing multiple influencers can get complicated, especially when coordinating disclosures and approvals. Sprout Social Influencer Marketing simplifies the process. The platform allows you to track campaign performance, coordinate schedules and monitor compliance across all stakeholders—all in one place. With features like invite links for labeling TikTok branded content and centralized content feedback, Sprout makes maintaining FTC compliance seamless.

The future of influencer compliance starts here

What does the future of influencer marketing look like? Only time will tell. But as the field evolves, so must consumer protections. The FTC’s goal is simple: to maintain honesty and transparency in advertising. For brands and marketers, this means staying adaptable and proactive. Having the right processes will help you manage compliance as guidelines shift.

That’s why using a dedicated influencer marketing platform like Sprout Social Influencer Marketing makes all the difference. With Sprout, you get the tools to track disclosures, manage campaigns and communicate directly with influencers in one streamlined platform.

Schedule a demo of our influencer marketing platform and see how easy managing compliant, successful influencer campaigns can be.

Disclaimer

The information provided in this article does not, and is not intended to, constitute formal legal advice; all information, content, and materials are for general informational purposes and are subject to change. Information on this website may not constitute the most up-to-date legal or other information. Incorporation of any guidelines provided in this article does not guarantee compliance or that your legal risk is reduced. You should contact your legal team or attorney to obtain advice with respect to any particular matter including how to comply with FTC guidelines and should refrain from acting on the basis of information in this article without first seeking independent legal advice. Use of, and access to, this article or any of the links or resources contained within the site does not create an attorney-client relationship between you and Sprout Social or any contributors to www.sproutsocial.com. Links to any third-party sites are for general informational purposes only. Such third-party websites are beyond our control, and we are not responsible for any content or links found within. Sprout Social does not endorse or otherwise opine on the compliance or legality of any content or examples on this article. All liability with respect to actions taken or not taken based on the contents of this article are hereby expressly disclaimed. More information about social media disclosures can be found at ftc.gov.

FTC Influencer Marketing FAQs

What is the FTC?

The FTC, or Federal Trade Commission, is a U.S. government agency focused on protecting consumers and promoting fair competition. It creates and enforces rules to prevent deceptive practices, false advertising and unfair business tactics. For brands and influencers, the FTC’s guidelines mandate that content that is sponsored or paid must be clearly labeled. This rule helps consumers make more informed purchasing decisions.

What are the FTC guidelines for how to disclose brand relationships?

The FTC guidelines require influencers to clearly disclose any brand relationships, like sponsorships or complimentary products. Disclosures should use simple language (like “ad” or “sponsored”) and appear at the beginning of posts, videos or captions. The goal is transparency so audiences know when a brand is influencing the content.