Being a social media influencer today is like running a small business. You build an audience and partner with brands to influence purchasing decisions. Due to this kind of influence, the Federal Trade Commission (FTC) regulates the sharing of sponsored content online. As influencer marketing continues to grow, and consumers increasingly rely on reviews before making purchases, transparent and honest disclosures matter more than ever. If you work with brands as an influencer, here is how to stay compliant with the FTC’s endorsement rules.

The FTC’s Core Rule: Disclose Material Connections

The FTC’s guidance is actually quite simple: If there is a relationship between you and a brand that could affect how your audience views your recommendation, you must disclose it. This is what is known as “material connection.” It is worth noting that a material connection is not limited to cash payments. It also includes receiving free products, earning commissions, or getting any perk tied to your endorsement. Even business and family relationships with a brand require disclosure.

Essentially, the goal is transparency. When your followers do not know a post is sponsored, they may assume your opinion is entirely independent. And that assumption can influence buying decisions, which is precisely what the FTC is trying to prevent.

How to Stay Compliant

As a social media influencer, here is what you must do to ensure your content meets FTC standards:

Always Disclose Sponsored Content

Per the FTC’s “Disclosures 101 for Social Media Influencers,” you must disclose sponsored content in a way that is easy to notice and easy to understand. If a disclosure is buried at the bottom of a caption or hidden behind a “see more” button, this will not cut it.

Ensure you use direct language, such as “#Ad” or “#Sponsored”, and place it at the beginning of your caption or clearly within the content itself. Avoid using terms like “Partner” or “Thanks to Brand X,” as this doesn’t clearly indicate to viewers or listeners that it is an advertisement.

Disclose Across All Formats

Disclosures apply everywhere, not just on the grid. If your content is in video format, you should say the disclosure out loud and include it in the description. For a live stream, ensure you mention it at the start and repeat it occasionally. For stories, reels, or any other short-form videos, clearly display the disclosure on the screen and ensure it is long enough for viewers to read it.

Use Plain, Honest Language

The tip here is to avoid jargon. Instead, always let your disclosure sound natural and straightforward. This may sound like,” Brand X sponsored this post” or “I received this product for free from Brand X.” Honesty also applies to the endorsement itself. Avoid exaggerating results, do not claim you used a product if you did not, and be clear if outcomes vary from one person to another.

Penalties for Not Being Compliant

Failing to comply can be costly. The FTC may start with warning letters, but this could escalate to penalties. As of 2025, violating an FTC order can result in fines exceeding $53,000 per violation, and each undisclosed post can count separately.

Contact the Internet Law and Social Media Attorneys at Revision Legal

For more information, contact the experienced Internet Law and Social Media Lawyers at Revision Legal. You can contact us through the form on this page or call (855) 473-8474.