legal
FTC Disclosure
Definition
The Federal Trade Commission requires that creators clearly and conspicuously disclose any material connection to a brand when promoting its products. This includes paid relationships, free product, and equity stakes. Required disclosure tags include #ad, #sponsored, or similar language per FTC guidelines.
For Creators
FTC disclosure is your legal obligation—not just a contractual one. Even if a brand asks you not to disclose, you remain personally liable under FTC regulations. Refusing to disclose when requested is also grounds for contract breach.
For Brands
Failure to ensure creator compliance with FTC disclosure requirements exposes the brand to FTC enforcement actions and civil penalties. Always contractually require FTC-compliant disclosures and audit creator posts for compliance.
⚠ Red Flag Warning
Any brand contract that explicitly discourages or prohibits FTC disclosures is itself an FTC violation. Walk away from any deal that asks you to hide the paid nature of a partnership.
Sample Contract Language
“Creator shall include a clear and conspicuous disclosure of the material connection between Creator and Brand in all Sponsored Content, including but not limited to using the hashtags "#ad" or "#sponsored" prominently in any caption or overlay, consistent with the FTC's Guides Concerning the Use of Endorsements and Testimonials.”
Appears in 6 contracts
Browse related contracts →Contracts containing this term
Endorsement Agreement (Shaquille O'Neal / Papa John's 2022)
Papa John's International / PJMF · March 15, 2022 · EDGAR
Endorsement and License Agreement (Bruush Oral Care)
Bruush Oral Care Inc. · 2022 · EDGAR
Endorsement and License Agreement (KHODE Brand / DJ Khaled)
Khode (CIK 1109486) · 2021 · EDGAR
Promotional Agreement (Greg Norman / Malibu Crew / F45)
Malibu Crew LLC / F45 Training Holdings · October 15, 2020 · EDGAR
Promotional Agreement (Cindy Crawford / F45 Training)
F45 Training Holdings Inc. (Delaware) · June 25, 2021 · EDGAR
Influencer Campaign Management Agreement (CurrencyWorks)
CurrencyWorks Inc. · 2021 · EDGAR