Brands must disclose any material connection to an influencer clearly and conspicuously, and the brand can be held responsible if the creator fails to do so. The Federal Trade Commission (FTC) finalized its updated Endorsement Guides on June 29, 2023. They say a connection must be disclosed when a significant minority of the audience would not understand or expect it, and a disclosure that sits behind a "more" link does not count, according to Venable's summary.
Last updated October 21, 2026. Data points below carry their own as-of dates.
What are the key takeaways on influencer disclosure?
Influencer disclosure works when the wording and placement are set before a post goes live, reviewed on every draft, and logged for every creator. The brand shares responsibility for monitoring, so disclosure is a brand duty as well as the creator's.
- Disclose payment, free product and other relationships the audience would not expect.
- Place the disclosure where viewers see it without clicking or scrolling.
- Keep a tracking log, since an audit after a complaint is too late.
Quick definition: what is a material connection?
A material connection is a relationship between a brand and an endorser that could affect how much weight the audience gives the endorsement, such as payment, free products or employment.
What do the FTC rules say, and when?
The FTC rules say endorsements must disclose material connections, advertisers must monitor their endorsers, and fake reviews are separately prohibited. The dates and sources below anchor each rule.
| Rule | Detail | Source and as-of date |
|---|---|---|
| Updated Endorsement Guides | Finalized June 29, 2023 | Venable, July 2023 |
| Disclosure standard | Clear and conspicuous, unavoidable online, and not hidden behind a "more" link | Same Venable summary |
| Advertiser responsibility | Advertisers must monitor endorsers, and endorsers and intermediaries can also be liable | Arnold & Porter, July 2023 |
| Fake reviews rule announced | August 14, 2024 | Kelley Drye, August 15, 2024 |
What connections between a brand and an influencer must be disclosed?
A brand and influencer must disclose any material connection, meaning a relationship that could affect how much credibility an audience gives the endorsement and that the audience would not expect. Payment is the obvious case, and the FTC's Endorsement Guides FAQ explains that other relationships can count too.
| Situation | Disclose? | Note |
|---|---|---|
| The creator is paid for the post | Yes | The most common material connection |
| The creator received free product or services | Yes | Free items can count as a material connection |
| The creator is an employee, investor or family member of the brand | Yes, when the audience would not expect it | Relationships beyond payment can matter |
| The creator is so closely identified with the brand that nearly everyone knows | Generally lower risk | The test looks at what a significant minority of the audience understands |
| A brand reposts a creator's endorsement | The disclosure must travel with it | Advertisers can be liable for what they republish |
What makes a disclosure clear and conspicuous?
A disclosure is clear and conspicuous when an ordinary viewer cannot miss it and does not have to click or scroll to see it. The FTC's standard is that online disclosures should be unavoidable, so a disclosure behind a "more" link falls short.
| Format | Stronger practice | Weak practice |
|---|---|---|
| Caption | A plain label such as "#ad" or "paid partnership" at the start | A disclosure at the bottom of a long caption or buried in unrelated hashtags |
| Video | Disclosure spoken and shown on screen where the viewer sees it | A fast spoken line in the final seconds |
| Platform tools | The platform's paid partnership label, used together with a clear caption disclosure | Relying on the label alone |
The disclosure should name the relationship in plain words. It does not need to explain every detail, but it must tell the audience enough to judge the endorsement.
Is a brand liable if an influencer forgets to disclose?
A brand can be liable if an influencer forgets to disclose. The final Guides emphasize that advertisers are responsible for, and must monitor, the actions of their endorsers, and that endorsers and intermediaries can be held liable as well, according to Arnold & Porter's advisory.
The same advisory notes that advertisers may be liable for statements by third parties if they repost or republish them. A brand that reshares a creator's post without its disclosure takes on that risk.
What happened when a beauty brand posted fake reviews?
Sunday Riley Skincare settled FTC charges in 2019 after the FTC found that company employees, at the direction of the founder, posted fake five-star reviews of the brand's products on Sephora's website using company devices and fake customer identities. The FTC's complaint said employees were told to use a virtual private network (VPN) and fake accounts to avoid detection.
The settlement required the company to stop misrepresenting that endorsements reflect a genuine, independent customer experience. The lesson for influencer programs is direct: an endorsement scripted by the brand and presented as independent misleads in the same way an undisclosed paid post does.
How can brands audit influencer disclosure before posts go live?
Brands can audit disclosure by reviewing the exact wording and placement before publication and logging each post, because an audit after a complaint arrives is too late. A written process also shows good faith if a regulator asks.
- Put the required disclosure language and placement into the creator brief and contract.
- Review each draft for wording, position and visibility on every platform it will run on.
- Log every creator, platform and posted disclosure in one tracking sheet.
- Check live posts after publication, and re-check any content the brand reshares.
- Keep records of corrections, so the monitoring process can be shown.
Campaigns with many creators need the tracking sheet most, since one missed disclosure among dozens of posts is the kind of gap that surfaces later. The crisis PR guide covers how to respond if a disclosure failure becomes public, and the guide to AI in influencer marketing covers fraud checks.
Frequently asked questions
What is the minimum FTC-compliant disclosure?
The minimum is a clear label such as "#ad" or "paid partnership," placed where viewers see it without clicking, and worded so the audience understands the relationship.
Can a brand be responsible for a creator's missing disclosure?
Yes. The FTC's Guides hold advertisers responsible for monitoring their endorsers, and endorsers and intermediaries can be liable as well.
Do the Endorsement Guides have the force of law?
The Guides are guidance, but they describe the practices the FTC considers deceptive under the FTC Act, so brands treat them as the working standard.
Does disclosure hurt a campaign's performance?
This guide does not rely on a performance claim either way. The legal duty to disclose applies regardless, and clear disclosure protects the brand and the creator.
What should a brand do first?
A brand should add disclosure language and placement to every creator brief, review each draft against it, and keep a log of what was posted. The complete guide to influencer marketing and the influencer marketing agency service cover creator tiers, vetting and program structure.
