The FTC's Guides Concerning the Use of Endorsements and Testimonials in Advertising (16 CFR Part 255) — commonly called the Endorsement Guides — govern how brands and endorsers must disclose material connections in advertising. The guides were substantially revised in 2023 to address social media, influencer marketing, and the proliferation of paid endorsement relationships across digital channels.
The guides are not formal regulations with the force of law, but FTC treats violations as deceptive acts under Section 5 of the FTC Act. Brands that ignore endorsement disclosure requirements face the same enforcement exposure as brands that make unsubstantiated health claims.
What Is a Material Connection
Under the FTC Endorsement Guides, a material connection is any relationship between a brand and an endorser that could affect the weight consumers give to the endorsement — and that consumers would not expect. Material connections include:
Payment — cash fees to influencers or content creators
Free products — sending product to influencers for review, even without payment
Affiliate commissions — commission-based compensation tied to sales generated by the endorser's link or code
Employment — employees or executives making product claims on personal social media
Family or personal relationships — a family member endorsing a relative's product
Equity or ownership stakes — brand founders or investors making claims about products they have a financial interest in
If the connection exists and consumers would consider it relevant to evaluating the endorsement, it must be disclosed.
The "Clear and Conspicuous" Standard
Disclosures must be clear and conspicuous — meaning they must be easy for consumers to notice, read, and understand. The FTC has provided guidance on what does and does not meet this standard:
Acceptable disclosures:
"#ad" or "#sponsored" at the beginning of a caption (not buried in a list of hashtags)
"Paid partnership with [Brand]" using platform-native disclosure tools
A verbal disclosure at the start of a video: "This video is sponsored by [Brand]"
Not acceptable:
"#ad" buried at the end of a long caption after multiple lines of text
Vague terms like "#partner," "#collab," "#ambassador" that many consumers don't understand to mean paid
Disclosures visible only if users click "more" to expand a caption
A disclosure in a caption that is not visible when a video is being watched
Platform-Specific Requirements
The FTC expects disclosures to be visible given how each platform is used:
Instagram: Disclosure in the caption, at the beginning — not just in hashtags or at the end. For Stories, a text overlay visible throughout the story.
TikTok: Verbal disclosure within the first few seconds of the video, plus a text disclosure in the caption.
YouTube: Verbal and written disclosure in the video; description box disclosure alone is insufficient if the video itself doesn't disclose.
Twitter/X and Threads: Disclosure within the tweet or post, not just in a separate reply.
Brand Liability for Influencer Non-Disclosure
The 2023 Endorsement Guides clarified that brands can be held liable for their endorsers' failure to disclose material connections, even if the brand didn't directly instruct the influencer to omit the disclosure. Brands are expected to:
Include disclosure requirements in influencer contracts
Monitor influencer content for proper disclosures
Follow up when content is posted without required disclosures
Have a system for reviewing and approving influencer content before posting
This means a supplement brand's affiliate program, gifting program, or paid influencer campaigns all require active compliance oversight — not just a one-time contract provision.
Testimonials and the Substantiation Requirement
Beyond disclosure, the FTC requires that testimonials reflect the typical results consumers can expect from using the product. If an influencer claims they lost 20 pounds using a supplement, and that result is not typical, the ad must include a clear disclosure of typical results — or the brand must have substantiation that the experience depicted is in fact typical.
"Results not typical" disclaimers in small print are not sufficient under current FTC guidance. The typical results disclosure must be prominent and clear.
How Truli Helps with FTC Endorsement Compliance
Influencer content monitoring: Truli scans TikTok and Instagram content associated with your brand — including creator and affiliate content — for missing disclosures and FTC compliance issues
Disclosure detection: Truli flags posts that appear to be sponsored but do not include a clear #ad or #sponsored disclosure
Claim review: Truli evaluates health and efficacy claims in influencer content against substantiation standards
Related Regulations
FTC Health Claims in Advertising — Substantiation requirements for health claims
FTC Made in USA Labeling Rule — Origin claim requirements
Frequently Asked Questions
Does the disclosure requirement apply if I just send a creator free product?
Yes. Sending free product creates a material connection. Even if there is no other compensation and no requirement that the creator post, if they do post about the product, they must disclose that they received it for free.
Do employees need to disclose when they post about our products?
Yes. Employees posting on personal social media about their employer's products must disclose their employment relationship. This applies even to casual posts.
What if the influencer has a small following?
The FTC's disclosure requirements apply regardless of follower count. There is no minimum audience size threshold below which disclosures are not required.
A note from Truli: Truli is not a law firm, and this article does not constitute or contain legal advice or create an attorney-client relationship. When determining your obligations and compliance with respect to relevant laws and regulations, you should consult a licensed attorney.
Last updated: April 2026. The 2023 Endorsement Guides represent the most significant update to FTC influencer policy in years — Truli monitors FTC enforcement for brand compliance. Book a demo to see how.
