FTC Influencer Disclosure: Endorsement Guides and the Fake Review Rule
If a brand pays you, sends you free product or has another connection with you, the FTC expects you to disclose it where viewers cannot miss it. This guide covers the Endorsement Guides, the FTC's disclosure guidance for influencers, and the 2024 rule on consumer reviews and testimonials.
Key points
- Free or discounted products count as a material connection, even when the brand does not require a post in return.
- On social media a disclosure should be unavoidable, which for video means inside the video, not only in the caption or description.
- The FTC does not dictate placement, but it says starting a post with "Ad:" or "#ad" would likely be effective and that disclosures at the end are easier to miss.
- Brands are expected to give endorsers guidance, monitor what they post and act on problems, and health products may need closer supervision.
- The Consumer Reviews and Testimonials Rule, in effect since October 21, 2024, prohibits fake reviews, sentiment-conditioned incentives and related practices; courts can impose civil penalties for knowing violations, currently up to $53,088 per violation (16 CFR 1.98(d)).
When you need to disclose
The FTC's Endorsement Guides (16 CFR Part 255) explain how the FTC Act applies to endorsements and testimonials. The current version was published on July 26, 2023 (88 FR 48092) and took effect the same day. The Guides focus on material connections: links between an endorser and a brand that viewers might not expect.
They can include monetary payment or the provision of free or discounted products (including products unrelated to the endorsed product) to an endorser, regardless of whether the advertiser requires an endorsement in return.
- The FTC's guidance for influencers says to disclose any financial, employment, personal or family relationship with a brand.
- Tags, likes, pins and similar ways of showing you like a brand or product can also be endorsements.
- Posting from outside the United States does not change this: U.S. law applies if it is reasonably foreseeable that the post will affect U.S. consumers.
How to disclose so viewers cannot miss it
In any communication using an interactive electronic medium, such as social media or the internet, the disclosure should be unavoidable.
The Guides add that a disclosure presented in both the visual and the audio parts of a communication is more likely to be clear and conspicuous. The FTC's published guidance turns this into practical points:
| Question | What the FTC guidance says |
|---|---|
| Where in the post | Place the disclosure with the endorsement itself. The FTC does not dictate an exact position, but starting a post with "Ad:", "#ad" or "Advertisement" would likely be effective, and a disclosure in the middle or at the end is easier to miss. |
| Video, including TikTok | Put the disclosure in the video, not only in the description. The FTC says a disclosure in the TikTok text description is very unlikely to be clear and conspicuous. |
| Wording | "Advertisement", "ad" and "sponsored" are clear. A hashtag such as #ad or #sponsored is fine but not necessary. Avoid vague terms such as "sp", "spon" or "collab", and stand-alone terms such as "thanks" or "ambassador". |
| Hashtags and links | Do not mix the disclosure into a group of hashtags or links. |
| Profile pages | A disclosure that appears only on an "about me" or profile page, or at the end of a post or video, is likely to be missed. |
| Platform tools | Do not assume a platform's disclosure tool is good enough. Consider using it in addition to your own disclosure. |
We're not necessarily saying that, if you use a disclosure like "#ad," you have to put it at the beginning of a post.
Rewrite examples
A disclosure does not make an unsupported claim acceptable. The FTC's influencer guidance says not to make claims that would require proof the advertiser does not have, such as scientific proof that a product can treat a health condition. Endorsers can be liable for their own statements, including saying they used a product when they did not.
Obsessed with this serum! #skincare #glow #morningroutine #sp
Ad: [Brand] sent me this serum for free. Here is how I use it in my morning routine. #skincare
Why: "#sp" is one of the vague terms the FTC says to avoid, and it sits in a string of hashtags. The rewrite starts with a clear disclosure and says the product was free. In a video, say it and show it on screen as well.
Thanks to [Brand] for these gummies! They fixed my anxiety. #ambassador
Sponsored by [Brand]. I take these gummies as part of my evening wind-down routine.
Why: "Thanks" and "ambassador" on their own are not clear disclosures. "Fixed my anxiety" is a health claim that needs proof the brand may not have.
Use my code at checkout, link in my bio!
For anyone just joining: this LIVE is sponsored by [Brand], and I earn a commission on sales through my link.
Why: In a livestream, repeat the disclosure so viewers who join late hear it. A rule library cannot see a disclosure that is missing; the full check adds an AI review that looks for it.
Livestreams and LIVE shopping
the disclosure should be repeated periodically so viewers who only see part of the stream will get the disclosure.
The FTC's FAQ adds that multiple, periodic disclosures make it more likely viewers see one whenever they tune in, and that, to be on the safe side, a continuous, clear and conspicuous disclosure could appear throughout the entire stream. Periodic disclosure is the baseline in the FTC's guidance; a continuous on-screen disclosure goes further. Write the disclosure into the LIVE script so it is not left to memory, and check the script with the TikTok LIVE Script Checker.
What brands are responsible for
Advertisers are subject to liability for misleading or unsubstantiated statements made through endorsements or for failing to disclose unexpected material connections between themselves and their endorsers.
The Guides say advertisers should give endorsers guidance, monitor their compliance and take action to remedy non-compliance. That is not a safe harbor, but good-faith guidance, monitoring and remedial action should reduce an advertiser's odds of facing an enforcement action. Advertising agencies, PR firms, review brokers and similar intermediaries may also be liable. The FTC's FAQ describes what a reasonable program looks like:
- Train and monitor the members of your network, with a list of permitted claims and instructions on how to disclose.
- Periodically search for what members of your network are saying, and take action if you find questionable practices.
- Expect to supervise more closely for health products. The FAQ says a network selling health products may need more supervision than one promoting a fashion line.
- There is no fixed monitoring frequency. If regular monitoring is too much, the FAQ suggests switching to pre-approval, and for short-lived posts such as Stories it says to require approval in advance.
The Consumer Reviews and Testimonials Rule (16 CFR 465)
The FTC's Trade Regulation Rule on the Use of Consumer Reviews and Testimonials was published on August 22, 2024 (89 FR 68034) and took effect on October 21, 2024. Under the rule text:
- Fake reviews and testimonials (§465.2). A business may not write, create or sell reviews or testimonials that materially misrepresent that the reviewer exists, that they used the product, or what their experience was. Buying such reviews is prohibited when the business knew or should have known they were fake or false.
- Incentives tied to sentiment (§465.4). A business may not offer compensation or other incentives conditioned on a review expressing a particular sentiment, positive or negative. FTC staff say paying for 5-star reviews violates this section even with a disclosure. Incentives without an express or implied sentiment requirement are not prohibited by the rule.
- Insider reviews (§465.5). Officers and managers may not post reviews of their own business without a clear and conspicuous disclosure of the relationship. The section also covers undisclosed employee testimonials and certain review requests to employees or relatives.
- Company-controlled review sites (§465.6). A business may not misrepresent that a website or organization it controls provides independent reviews or opinions.
- Review suppression (§465.7). Unfounded legal threats, physical threats, intimidation or public false accusations in response to a review are prohibited, as is presenting displayed reviews as complete while negative ones are suppressed.
- Fake social media indicators (§465.8). Selling, distributing, buying or procuring fake followers, views, likes and similar indicators of influence is prohibited in the circumstances the rule describes.
The rule text does not mention AI. The FTC's press release announcing the rule gives AI-generated fake reviews as an example of reviews that misrepresent that they are by someone who does not exist, and FTC staff note the rule has no blanket prohibition on AI-generated avatars in marketing. For hired influencers, the FTC says the testimonial provisions apply rather than §465.4, which covers consumer reviews.
Checklist for creators
- Disclose any payment, free product, commission, employment, or personal or family relationship with the brand.
- Put the disclosure in the video itself, on screen and spoken, not only in the caption. Starting with it is likely to be effective.
- Use clear words such as "Ad", "Advertisement" or "Sponsored". Do not rely on "sp", "spon", "collab", "thanks" or "ambassador".
- Repeat the disclosure periodically during a livestream.
- Describe only what you actually experienced, and leave out health claims the brand cannot prove.
Checklist for brands
- Give every creator written guidance: the claims they may make and how to disclose.
- Periodically check what creators post, and more closely for health products.
- Pre-approve posts when regular monitoring is not practical, and for short-lived content such as Stories.
- Act when a post falls short, for example by asking for a correction.
- Do not offer incentives that depend on a positive review, and never write, buy or sell fake reviews.
- Disclose reviews by officers, managers or employees, and do not suppress negative reviews.
Check your own wording
TikTok Shop Claim Checker · Check a video script, caption or listing for medical, weight-loss and misleading claims before you post.
Open the free checkerFrequently asked questions
Do I need to disclose if the brand only sent me a free product?
Yes. The Endorsement Guides list free or discounted products as a material connection, even when the brand does not require a post in return.
Does the FTC require #ad at the beginning of a post?
No. The FTC says it does not dictate where the disclosure goes. It does say that starting a post with "Ad:" or "#ad" would likely be effective, and that disclosures in the middle or at the end are easier to miss.
Is the TikTok caption enough for a disclosure?
Usually not. The FTC says a disclosure in the TikTok text description is very unlikely to be clear and conspicuous, and that the disclosure should be in the video itself. Showing and saying it is more likely to be noticed.
Is a platform paid-partnership label enough?
The FTC advises not to assume a platform's disclosure tool is good enough, and to consider using it in addition to your own disclosure.
Does the fake review rule ban AI-generated reviews?
The rule text does not use the word AI. It prohibits reviews that misrepresent that the reviewer exists, used the product, or had the experience described. The FTC's press release gives AI-generated fake reviews as an example of that.
What is the penalty for violating the fake review rule?
Courts can impose civil penalties for knowing violations, currently up to $53,088 per violation under 16 CFR 1.98(d). The FTC published a notice in September 2026 (91 FR 58446) keeping the 2025 amounts for 2026.
Sources
The official pages this page relies on. Policies change, so check the source before you act on it.
- eCFR16 CFR Part 255, Guides Concerning the Use of Endorsements and Testimonials in Advertising
- Federal RegisterGuides Concerning the Use of Endorsements and Testimonials in Advertising (88 FR 48092)
- FTCDisclosures 101 for Social Media Influencers
- FTCFTC's Endorsement Guides: What People Are Asking
- eCFR16 CFR Part 465, Rule on the Use of Consumer Reviews and Testimonials
- Federal RegisterTrade Regulation Rule on the Use of Consumer Reviews and Testimonials (89 FR 68034)
- FTCFederal Trade Commission Announces Final Rule Banning Fake Reviews and Testimonials
- FTCThe Consumer Reviews and Testimonials Rule: Questions and Answers
- eCFR16 CFR 1.98, Adjustment of civil monetary penalty amounts
- GovInfo15 U.S.C. §45 (FTC Act §5)
- Federal RegisterCivil Penalty Inflation Adjustments (91 FR 58446)
This page explains published rules for general information. It is not legal advice, and the platform or regulator makes the final decision.