Influencer Marketing and FTC Disclosure Rules featured image

Influencer Marketing and FTC Disclosure Rules

by John DiGiacomo

Partner

Internet Law

Influencer marketing has changed how brands advertise. Instead of traditional commercials, businesses are now relying on creators to promote products through posts, videos, livestreams, and podcasts that feel authentic and personal. But when money, free products, and other perks are involved, those endorsements are not just casual recommendations. They are advertising, which must be regulated. The Federal Trade Commission (FTC) enforces rules that require transparency in these partnerships. Even if content feels organic, the same rules of advertising apply.

Clear and Conspicuous Disclosure

The FTC requires disclosures to be “clear and conspicuous.” This means that they must be easy to notice and understand. The consumers shouldn’t have to search for them. The most appropriate disclosures use straightforward language like “Sponsored,” “Paid Partnership,” or “Advertisement.” These must appear early in a caption or video, not buried under hashtags or hidden behind a “read more” link.

Whether the content is in video or audio format, disclosures should be both visible and spoken. In case you are advertising via a livestream, they should be repeated periodically. It is also worth noting that while platform tools, such as built-in “Paid Partnership” labels, can help, they do not replace a clear disclosure within the content itself.

Substantiated and Honest Claims

In addition to disclosure, influencers and brands must ensure that endorsements are truthful and supported by evidence. The FTC’s Endorsement Guides require that endorsements reflect honest opinions and actual experiences. For example, an influencer cannot claim to use products they haven’t even tried or promise results they didn’t personally achieve. In the same vein, health-related claims must be supported by competent, reliable scientific evidence.

As a brand using influencer marketing, you should monitor the content your influencers post online and address any misleading statements when they arise. Although your business may not be responsible for every spontaneous comment, you must take reasonable steps to oversee the marketing.

Testimonials, Affiliate Links, and Expert Endorsements

Affiliate marketing also requires disclosure. This means that if a creator earns a commission from a link, even if indirectly, that relationship must be disclosed. This may be done with a simple statement explaining that a commission may be earned, as long as it is clear and understandable.

If you are an expert endorsing a product, you have an added layer of responsibility. One, if the content suggests that an endorser has professional expertise, that representation must be accurate. Secondly, a licensed professional may only endorse products within their area of competence. This is because consumers give greater weight to expert opinions, increasing the risk of harm when disclosures are incomplete or misleading.

Who Must Follow These FTC Rules?

You do not need millions of followers to fall under these rules. As long as there is a material connection, such as payment, free products, commissions, discounts, family relationships, or business partnerships, you must adhere to the rules.

Common Mistakes to Avoid

Many violations result from avoidable mistakes. These include:

Placing a disclosure at the end of posts

Relying on platform labels

Assuming followers already “know” about the partnership with a brand

Using stock photos instead of actual images

Contact the Internet Law and Compliance Attorneys at Revision Legal

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

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