What it means
Sponsored Post
What do the FTC rules require?
The FTC's Disclosures 101 for Social Media Influencers says that when an influencer endorses a product, the message should make it obvious if they have a material connection to the brand. A material connection includes a financial relationship, such as being paid or receiving free or discounted products or services. It also includes personal, family or employment ties. The rule applies to sponsored posts, and it also applies to products that were simply gifted.
How should a sponsored post be disclosed?
- Make it clear and easy to notice. Place #ad or a plain statement where viewers will see it without clicking "more".
- Do not bury it. A label hidden in a stack of hashtags does not meet the standard.
- Disclose in the format. For video, say it aloud and show it on screen as well as writing it in the caption.
- Use plain words. The FTC's example is a statement such as thanking a brand for the free product, with #ad.
Platform tools such as paid-partnership labels can help, but follow the guidance on clear disclosure and check the current rules for each platform. See FTC disclosure.
Sponsored, gifted or organic?
| Sponsored post | Gifted product | Organic mention | |
|---|---|---|---|
| Compensation | Cash, product or both | Free product, no obligation to post | None |
| Brand control | Brief, approvals and deliverables | Little | None |
| Disclosure needed? | Yes | Yes, if the creator posts about it | No connection to disclose |
How do brands manage sponsored posts?
- Pick creators for fit. Choose people whose audience and values match the brand.
- Write a clear brief. Cover key messages, must-haves and what the creator should avoid, and leave room for their own voice.
- Put disclosure in the contract. Require clear disclosure, and tell creators how you expect it to look.
- Approve before posting. Review drafts for accuracy and disclosure.
- Monitor after posting. Check that the label stayed visible, and track results.
What are the risks of undisclosed sponsorship?
Undisclosed sponsorship is a legal risk and a credibility risk. The FTC has sent educational letters and taken enforcement action related to influencer disclosure, and audiences who feel misled can lose trust in both the creator and the brand. Brands share responsibility, so build disclosure into every campaign.
Frequently asked questions
What is a sponsored post?
A post a creator publishes about a brand in exchange for payment, product or another benefit, which must be clearly disclosed.
Do gifted products have to be disclosed?
Yes. Free products count as a material connection, so a creator who posts about a gifted item should say it was gifted.
Is #ad enough?
It can be, if it is clearly visible and easy to understand in the context of the post. A vague or buried label is not enough.
Who is responsible for disclosure, the creator or the brand?
Both. Creators must disclose, and brands should require and check it.
How are sponsored posts measured?
By reach, engagement, link clicks and code redemptions, plus the quality and reusability of the content.
Related terms and services
FTC disclosure, brand ambassador, unboxing and the Influencer and Creator glossary. See 5W's Celebrity and Influencer Relationships service.
Sources
- FTC Consumer Advice: Disclosures 101 for Social Media Influencers
- Seyfarth Shaw: Influencer disclosure update from the FTC
- Retail and Consumer Products Law Observer: Will the FTC crack down on online influencers?
This is general information, not legal advice.
By the 5W Editorial Team. Every 5W article is reviewed by a human editor before publication. Updated October 28, 2026.