Glossary / Creator Economy

What does FTC Disclosure mean?

An FTC disclosure is the clear, conspicuous notice that content is sponsored or that the creator has a material connection to a brand — like #ad or "paid partnership." US Federal Trade Commission guidelines require it for sponsored posts, gifted products, and affiliate links to keep endorsements honest with audiences.

The principle is simple: if there is a paid or otherwise material relationship between a creator and what they are promoting, the audience has a right to know. That covers sponsored posts, free products in exchange for coverage, affiliate commissions, and brand-ambassador deals. Vague tags buried in a wall of hashtags do not count — disclosure must be clear and hard to miss.

Best practice is a plain label placed up front: "#ad," "paid partnership with [brand]," or the platform's built-in paid-partnership tool, plus a spoken disclosure in video. Beyond legal compliance, clear disclosure protects audience trust — and audiences increasingly expect transparency, so hiding sponsorships tends to backfire when discovered.

Used in the wild

Caption opener: "#ad — yes this is sponsored, but I genuinely use it, here's the honest review anyway."

Most used on:InstagramTikTokYouTube

FAQs about FTC Disclosure

When do you need an FTC disclosure?

Whenever there is a material connection between you and what you promote — sponsored posts, gifted products, affiliate links, or ambassador deals. If money, free product, or another incentive is involved, the relationship must be disclosed clearly.

How should you disclose sponsored content?

Use a clear, upfront label like "#ad" or "paid partnership with [brand]," not a tag buried among hashtags. For video, say it out loud too. Platform paid-partnership tools help, but a plain, conspicuous notice is the core requirement.

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