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How can you avoid FTC violations when disclosing sponsored content?

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If you are an influencer or a brand that works with influencers, you need to be aware of the FTC guidelines for disclosing sponsored content. The FTC is the Federal Trade Commission, the agency that enforces consumer protection laws in the US. Sponsored content is any content that you create or share in exchange for money, free products, services, or other benefits from a brand. Disclosing sponsored content means clearly and conspicuously informing your audience that you have a material connection with the brand. Failing to disclose sponsored content can result in FTC violations, which can damage your reputation, credibility, and trust with your audience and the brand, as well as lead to legal consequences, such as fines or lawsuits. In this article, we will show you how you can avoid FTC violations when disclosing sponsored content by following some best practices.

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1 Know the FTC guidelines

Familiarizing yourself with the FTC guidelines for disclosing sponsored content is the first step to avoiding FTC violations. These guidelines can be found on the FTC website, where FAQs, examples, and tips are provided for different platforms and situations. The main principles include disclosing any material connection with a brand, making the disclosure clear and conspicuous, placing the disclosure before or at the same time as the sponsored content, and repeating the disclosure if necessary. You are responsible for making the disclosure, even if the brand does not ask you to or tells you not to. Relying on platform features or tools is not sufficient; you must monitor and update your disclosure if content changes or expires.

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Victorianne M.

Data Privacy Counsel | SaaS Technology Transactions | Data Security
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Failing to comply with FTC guidelines for disclosing sponsored content poses risks of fines and reputational damage. Understanding and adhering to these guidelines is crucial for marketing to ensure consumer privacy compliance, build trust with consumers, and maintain a positive brand image.

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Nycole Hampton

Brand Marketing Leader | Social Media, Influencer + Integrated Marketing Expert | Speaker | Adjunct Professor
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Make sure you truly understand FTC guidelines and ensure your legal team is also versed in watch outs. Always include FTC requirements in your contracts and content briefs to ensure it is crystal clear that you're not a brand that hides partnerships. When content comes in for review make sure disclosure is correct - if AD is too far down, make them move it up. If it's not there at all, tell them to add it. Don't assume they will.

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2 Choose the right disclosure method

The second step to avoid FTC violations is to choose the right disclosure method for your sponsored content. This depends on the type, format, and platform of your content, as well as the expectations and habits of your audience. Generally, for written content like blog posts or articles, you should use words like "ad", "sponsored", "paid partnership", "gifted", or "in collaboration with" to disclose your material connection with the brand. Additionally, this should be placed near the top of your content and not at the end or in a footnote. For audio content like podcasts or radio shows, you should use words like "ad", "sponsored", or "paid partnership" and say the disclosure clearly and audibly at the beginning and end of your content. As for video content like YouTube videos or Instagram stories, you should use words like "ad", "sponsored", or "paid partnership" and say the disclosure verbally and visually at the beginning and throughout your content. Make sure that it is visible and readable on all devices and screen sizes too.

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Victorianne M.

Data Privacy Counsel | SaaS Technology Transactions | Data Security
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The choice of appropriate disclosure methods, such as privacy statements or notices, is vital for maintaining transparency, ensuring notice and consent, and complying with FTC-enforced laws like COPAA, FCRA, and TCA. These measures protect consumer privacy rights, foster trust, and demonstrate a commitment to ethical marketing practices.

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3 Be honest and authentic

The third step to avoid FTC violations is to be honest and authentic with your sponsored content. This means that you should only endorse or recommend brands or products that you have actually tried, used, or experienced, and that you genuinely like, trust, or believe in. You should also share your honest opinion, feedback, or experience with the brand or product, and disclose any pros and cons, risks, or limitations that might affect your audience's decision or satisfaction. You should also respect your audience's privacy and preferences, and avoid making false, misleading, or unsubstantiated claims or promises about the brand or product. Being honest and authentic with your sponsored content will not only help you avoid FTC violations, but also enhance your credibility, trustworthiness, and loyalty with your audience and the brand.

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Victorianne M.

Data Privacy Counsel | SaaS Technology Transactions | Data Security
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Being honest and authentic in sponsored content is crucial to avoid FTC violations. Privacy notices and disclosures must contain clear information about data collection, usage, and sharing practices to inform and obtain users' consent properly. Respecting users' right to opt-out is also essential, allowing them to control their personal information and make informed choices about their privacy preferences.

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4 Keep track of your sponsored content

The fourth step to avoid FTC violations is to keep track of your sponsored content. This means that you should keep records of your agreements, contracts, communications, and payments with the brands that you work with, and review them regularly to make sure that you comply with their terms and conditions. You should also keep records of your sponsored content, such as screenshots, links, or analytics, and review them regularly to make sure that they are accurate, up-to-date, and consistent with your disclosure. You should also monitor and respond to your audience's comments, questions, or complaints about your sponsored content, and address any issues or concerns that might arise. Keeping track of your sponsored content will help you avoid FTC violations, as well as improve your performance, quality, and transparency.

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5 Educate yourself and your audience

The fifth step to avoid FTC violations is to educate yourself and your audience about sponsored content. This means that you should stay informed and updated about the FTC guidelines, the industry standards, and the best practices for disclosing sponsored content, and seek advice or guidance from experts or peers if you have any doubts or questions. You should also educate your audience about sponsored content, and explain why, how, and when you disclose your material connection with the brands that you work with. You should also encourage your audience to be aware and critical of sponsored content, and to seek more information or verification before making any purchase or decision based on your endorsement or recommendation. Educating yourself and your audience about sponsored content will help you avoid FTC violations, as well as build trust, respect, and engagement.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How can you avoid FTC violations when disclosing sponsored content?

1

2

3

4

5

6

1 Know the FTC guidelines

2 Choose the right disclosure method

3 Be honest and authentic

4 Keep track of your sponsored content

5 Educate yourself and your audience

6 Here’s what else to consider

Influencer Marketing

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How can you avoid FTC violations when disclosing sponsored content?

1

2

3

4

5

6

1 Know the FTC guidelines

2 Choose the right disclosure method

3 Be honest and authentic

4 Keep track of your sponsored content

5 Educate yourself and your audience

6 Here’s what else to consider

Influencer Marketing

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