The Federal Trade Commission (FTC) has established guidelines that social media influencers must follow when disclosing relationships with brands. These guidelines are designed to ensure transparency and protect consumers from misleading endorsements. Creators are required to disclose any financial, employment, personal, or family relationship with a brand, which includes receiving free or discounted products or other perks.
Placement and Clarity of Disclosures
According to the FTC, disclosures should be placed where they are hard to miss and should accompany the endorsement message itself. This means that placing disclosures only in an About Me or profile page, or at the end of posts or videos, is likely to result in them being overlooked. Creators are encouraged to integrate disclosures seamlessly into their content.
Clear and conspicuous disclosures are essential for maintaining trust in the creator economy.
Acceptable Terms for Disclosure
The FTC outlines specific language that creators can use when making disclosures. Simple phrases like 'thanks to [brand] for the free product' are often sufficient. Acceptable terms include 'advertisement', 'ad', and 'sponsored'. However, vague abbreviations such as 'sp', 'spon', or 'collab', as well as standalone terms like 'thanks' or 'ambassador', should be avoided to ensure clarity.
Platform Tools and Additional Disclosures
The FTC also advises creators not to rely solely on a platform's built-in disclosure tools. While these tools can be helpful, they may not be sufficient on their own. Creators are encouraged to use these tools in conjunction with their own clear disclosures to enhance transparency and ensure compliance with FTC guidelines.
