Stay legal and build trust with these key FTC guidelines:
- Disclose connections clearly
- Make honest, backed-up claims
- Identify native ads
- Use real endorsements
- Follow influencer rules
- Make disclosures easy to see
- Explain free trials fully
- Be honest about green claims
- Protect kids' privacy in ads
- Keep up with FTC changes
Why it matters:
- Avoid fines up to $11,000 per day, per violation
- Maintain audience trust
- Ensure fair competition
Key takeaway: FTC compliance isn't optional. It's about running an ethical business and avoiding hefty penalties.
| Rule | What to Do |
|---|---|
| Disclose | Clear, conspicuous sponsorship mentions |
| Claims | Truthful, evidence-backed statements |
| Native Ads | Label as "Advertisement" or "Sponsored" |
| Endorsements | Use genuine testimonials, reveal connections |
| Kids' Privacy | Get parental consent, limit data collection |
Stay updated:
- Check FTC.gov regularly
- Follow FTC on social media
- Set Google Alerts for "FTC advertising guidelines"
Remember: These rules apply to all platforms and content types. When in doubt, disclose.
Related video from YouTube
1. Disclose Connections Clearly
The FTC requires content creators to be upfront about their relationships with brands. This means disclosing any material connections, including:
- Paid partnerships
- Free products or services
- Employment relationships
- Family ties to a brand
Here's how to make proper disclosures:
-
Be explicit: Use clear language like "This post is sponsored by [Brand]" or "I received this product for free from [Brand]."
-
Place disclosures prominently: Put them at the beginning of your content, not buried at the end.
-
Use platform-specific tools: For example, Instagram's "Paid partnership with..." feature.
-
Repeat disclosures: In longer content, mention the partnership multiple times.
-
Avoid vague terms: Don't use "#sp" or "thanks [Brand]" - these aren't clear enough.
Platform-Specific Rules
Different platforms require different approaches:
| Platform | Disclosure Method |
|---|---|
| Use "Paid partnership with..." tag + #ad in first line of caption | |
| YouTube | Verbal disclosure in first 30 seconds + written in description |
| TikTok | Text overlay on video + #ad in caption |
| Blog posts | Disclosure at the top of the post |
For Instagram Stories, each individual story related to a sponsorship needs its own disclosure. Use the "Paid partnership with..." tag and ensure text overlays are readable.
On live streams (e.g., Twitch, YouTube Live), repeat your disclosure verbally and use on-screen text throughout the stream.
"Disclosures must be easily noticed and understood, regardless of the platform you are using."
Remember, both influencers and brands are responsible for proper disclosures. The FTC has taken action against individual influencers for non-compliance, so it's crucial to get this right.
2. Make Honest, Backed-Up Claims
The FTC takes a firm stance on truthful advertising. Your claims must be honest and supported by solid evidence. Here's how to stay on the right side of the law:
Back Up Your Claims
Every claim you make in your ads needs proof. This isn't just good practice—it's the law. The FTC expects you to have evidence before you start advertising.
For example:
- If you say "3 out of 4 customers prefer our brand", you need survey data to prove it.
- Claims like "studies show" or "doctors recommend" require actual studies or recommendations.
Different Claims, Different Standards
The level of proof you need depends on your claim:
| Claim Type | Required Evidence |
|---|---|
| General claims | Reasonable basis |
| Health and safety claims | Competent and reliable scientific evidence |
| Express claims (e.g., "tests prove") | At least the level of substantiation advertised |
Avoid Misleading by Omission
Leaving out key info can be just as bad as lying. Make sure you're giving the full picture.
"A claim can be misleading if relevant and material information is left out." - FTC Guidelines
Real-World Consequences
Breaking these rules isn't just about fines. It can seriously damage your brand. In 2022, the FTC hit WealthPress with a $1.7 million penalty for making "outlandish and false claims" about their investment advice.
Tips for Honest Advertising
- Focus on values: Instead of pushing your product, highlight what your brand stands for.
- Be specific: Vague promises don't cut it. Give concrete details about what customers can expect.
- Embrace weaknesses: Acknowledging where you're not the best can build trust. Avis famously used "We're Number Two, So We Try Harder" for over 50 years.
- Show, don't tell: Use customer testimonials (real ones!) and case studies to demonstrate your value.
3. Be Clear About Native Ads
Native ads blend in with regular content, making them tricky for users to spot. But the FTC wants you to play fair. Here's how to keep your native ads on the right side of the law:
What Are Native Ads?
Native ads look like the content around them. They could be:
- Sponsored posts on social media
- "Advertorials" that read like news articles
- Promoted listings on shopping sites
Why Clarity Matters
The FTC's rules are simple: Don't trick people. If it's an ad, say it's an ad.
In 2016, Warner Bros. got in hot water for not making influencers clearly state they were paid to promote a video game. The lesson? Be upfront or face the consequences.
How to Label Native Ads
Use clear, simple language:
| Good Labels | Bad Labels |
|---|---|
| "Ad" | "Promoted" |
| "Paid Advertisement" | "Sponsored Stories" |
| "Sponsored Advertising Content" | "Partner Content" |
Place labels where users will see them:
- Above or in front of headlines
- In a color that stands out
- In an easy-to-read font
Examples of Clear Native Ads
- Instagram uses a clear "Sponsored" label in the top right corner of paid posts.
- Amazon highlights sponsored listings with different colors and fonts.
- Etsy marks ads with "Ad" labels in black text on white circles.
Beyond the Label
Labels aren't enough. Make sure:
- The ad's URL includes "advertisement" (e.g., example.com/advertisement/product-name)
- Titles and descriptions mention it's an ad
- All sharing data (like Open Graph) includes ad disclosures
"The Commission will find an advertisement deceptive if the ad misleads reasonable consumers as to its nature or source." - FTC
Keep It Clear Across Platforms
Your ad might travel. Make sure the disclosure stays with it:
- On social media shares
- In email forwards
- On mobile devices
The Bottom Line
Be honest. Be clear. Don't hide the fact that your content is an ad. It's not just about following rules—it's about building trust with your audience.
4. Use Real Endorsements
The FTC takes a firm stance on endorsements and testimonials in advertising. Their message is clear: keep it real.
Here's what you need to know:
1. Genuine experiences only
Use testimonials that reflect actual customer experiences. The FTC defines endorsements as messages consumers are likely to believe reflect opinions, beliefs, or experiences of someone other than the advertiser.
2. Disclose connections
If there's any link between your brand and the endorser, spell it out. This includes:
- Payments
- Free products
- Employment relationships
- Family ties
3. Show typical results
If an endorser's experience isn't typical, you must say so. In 2023, the FTC updated its guidelines to emphasize this point.
| Do | Don't |
|---|---|
| Use real customer stories | Create fake testimonials |
| Disclose any compensation | Hide relationships with endorsers |
| Show average results | Only highlight best-case scenarios |
4. Get permission
Always get consent before using someone's name or likeness in a testimonial.
5. Monitor your endorsers
You're responsible for what your endorsers say, even without a formal contract. Keep an eye on their posts and correct any misleading claims.
6. Be careful with reviews
Don't manipulate reviews by:
- Deleting negative ones
- Buying fake positive ones
- Editing content to change the meaning
In 2017, the FTC took action against influencers Trevor Martin and Thomas Cassell for promoting CSGOLotto without disclosing their ownership. This case highlights the importance of transparency in endorsements.
"An endorsement is an advertising message that consumers are likely to believe reflects the opinions, beliefs, findings, or experiences of a party other than the sponsoring advertiser." - FTC
5. Follow Influencer Rules
Influencer marketing has become a major force in advertising, with over $34 billion spent in 2023. The FTC has taken notice, issuing new guidelines to ensure transparency and protect consumers.
Here's what influencers and brands need to know:
1. Disclose all material connections
Any relationship between an influencer and a brand must be clearly stated. This includes:
- Paid partnerships
- Free products
- Family ties
- Employment relationships
2. Make disclosures clear and visible
| Platform | Disclosure Method |
|---|---|
| Use "Paid Partnership with..." feature and include #ad in caption | |
| TikTok | Superimpose disclosure over video and use #ad in description |
| YouTube | Verbally state partnership and include in video description |
| Twitch | Repeatedly disclose verbally and in writing during streams |
3. Avoid vague language
Don't use unclear terms like "sp" or "spon". Stick to straightforward disclosures like #ad, #sponsored, or "This post is sponsored by [Brand]".
4. Disclose on every platform
If you're promoting a product across multiple social media accounts, disclose the partnership on each one.
5. Be honest about results
Don't exaggerate product benefits or make false claims. Stick to your genuine experience.
6. Brands: Monitor your influencers
Companies are responsible for ensuring their influencers follow FTC guidelines. Implement a tracking system and provide clear instructions to partners.
"When companies launder advertising by paying an influencer to pretend that their endorsement or review is untainted by a financial relationship, this is illegal payola." - Rohit Chopra, FTC Commissioner
The consequences of non-compliance can be severe. In 2020, the FTC sued Teami for deceptive marketing, resulting in over $930,000 returned to customers due to false influencer endorsements.
To stay compliant:
- Use clear, unambiguous language in disclosures
- Place disclosures where they're easily seen (e.g., before the "more" button on Instagram)
- Include both written and verbal disclosures in video content
- Refuse to work with influencers who don't follow the rules
6. Make Disclosures Easy to See
The FTC's stance on disclosures is clear: they must be "difficult to miss" and "easily understandable by ordinary consumers." This means your disclosures should be as obvious as a neon sign in a dark alley.
Here's how to make your disclosures pop:
1. Place disclosures strategically
Put your disclosures where they can't be missed:
- Near the claims they relate to
- Before any links to endorsed products
- At the beginning of content for influencer marketing
2. Use clear language
Ditch the legal jargon. Opt for simple terms like:
- "AD" or "Advertisement"
- "Sponsored" or "Paid Partnership"
- "This post is sponsored by [Brand]"
Avoid vague terms like "sp", "spon", or "collab" - they don't cut it with the FTC.
3. Make disclosures unavoidable
For digital content:
| Platform | Disclosure Method |
|---|---|
| Use built-in "Paid Partnership" feature + #ad in caption | |
| TikTok | Superimpose disclosure over video |
| YouTube | State partnership verbally and in description |
| Blogs | Place disclosure before any affiliate links |
4. Use visual cues
Make disclosures stand out:
- Use contrasting colors
- Apply bold fonts
- Add icons or symbols
5. Repeat disclosures in long-form content
For videos or livestreams, mention the partnership multiple times throughout the content.
6. Adapt for all devices
Ensure disclosures are readable on:
- Mobile phones
- Tablets
- Desktop computers
Remember, if your disclosure can be missed by clicking "more" or skipping a link, it's not good enough.
"For purposes of this part, 'clear and conspicuous' means that a disclosure is difficult to miss (i.e., easily noticeable) and easily understandable by ordinary consumers." - FTC Guide
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7. Explain Free Trials Fully
Free trials can be a great way to attract customers, but the FTC is cracking down on misleading practices. Here's how to stay on the right side of the law:
Be upfront about terms
Don't bury the details in fine print. Clearly state:
- Trial length
- What happens after the trial ends
- Full cost of the product/service
- How to cancel
Get clear consent
Make sure customers actively agree to the terms. No pre-checked boxes or hidden clauses.
Make cancellation easy
The FTC's proposed "click to cancel" rule would require:
- Cancellation as simple as signing up
- Ability to cancel through the same method used to subscribe
| Do | Don't |
|---|---|
| Provide online cancellation option | Require phone calls to cancel |
| Allow cancellation anytime | Hide cancellation info |
| Send reminders before trial ends | Auto-renew without warning |
Avoid hidden charges
Be clear about any costs during the trial period, like shipping fees.
Watch your wording
Don't call it "free" if there are any upfront costs.
Learn from others' mistakes
The FTC has taken action against companies for deceptive free trial practices:
- AH Media Group, LLC: Charged with enrolling consumers in continuity plans without consent, resulting in $35 million in illegal charges.
- Think All Publishing: Misled consumers about a "free" CD offer with hidden terms.
- NextClick Media: Sued for offering trials that weren't free and making unauthorized charges.
Bottom line: Be transparent, get clear consent, and make cancellation painless. Your customers (and the FTC) will thank you.
8. Be Honest About Green Claims
Making environmental claims about your products or services? Be careful. The FTC is cracking down on "greenwashing" - misleading consumers about environmental benefits.
Here's how to stay on the right side of the law:
Back up your claims
Don't just say your product is "eco-friendly". Prove it with solid evidence. The FTC expects you to have data supporting any green claims before you make them.
Be specific
Vague terms like "green" or "sustainable" don't cut it. Instead, use clear, specific language. For example:
| Instead of | Use |
|---|---|
| Eco-friendly | Made from 100% recycled materials |
| Sustainable | Reduces water usage by 50% |
| Green | Biodegradable within 6 months |
Consider the full picture
Look at your product's entire lifecycle. A "recyclable" claim falls flat if most facilities don't actually recycle that item.
Watch out for certifications
Third-party certifications can boost credibility, but make sure they're legit. The FTC has guidelines on how to use certifications properly.
Real-world example
In 2022, the FTC took action against AJM Packaging Corporation for claiming its paper plates were recyclable. The problem? Most recycling facilities don't accept used paper plates. AJM had to stop making the claim and pay a $3 million penalty.
Key takeaway
"If you're not sure you have scientific support for your green claims, don't make them in the first place." - Federal Trade Commission
The FTC's Green Guides offer detailed advice on environmental marketing. They're getting an update in 2024, so stay tuned for even stricter rules.
9. Protect Kids' Privacy in Ads
The FTC takes children's online privacy very seriously. If your ads target kids under 13, you need to follow strict rules set by the Children's Online Privacy Protection Act (COPPA).
Here's what you need to know:
1. Get parental consent
Before collecting any personal information from children, you must get verifiable consent from their parents. This includes:
- Names
- Email addresses
- Phone numbers
- Location data
- Photos or videos
2. Be clear about data practices
Your privacy policy must explain:
- What information you collect from kids
- How you use that information
- Who you share it with
Make this easy for parents to find and understand.
3. Limit data collection and use
Only collect the minimum amount of information needed. Don't use kids' data for targeted advertising without explicit parental permission.
| Allowed | Not Allowed |
|---|---|
| Contextual ads based on content | Behavioral targeting using personal data |
| Age-gated content | Tracking across websites |
| General demographic targeting | Creating detailed user profiles |
4. Keep data secure
Implement strong security measures to protect children's information from unauthorized access or breaches.
5. Delete data when no longer needed
Don't keep children's personal information longer than necessary. Have a clear data retention policy.
Real-world consequences
In 2019, YouTube paid a $170 million fine for COPPA violations. They collected personal information from kids without parental consent and used it for targeted advertising.
"Companies should take particular care when it comes to children's information." - Samuel Levine, Director of the FTC's Bureau of Consumer Protection
Key takeaway: When it comes to kids' privacy, err on the side of caution. The FTC doesn't mess around with COPPA violations.
10. Keep Up with FTC Changes
The FTC doesn't stand still. They're always tweaking rules to keep up with new tech and marketing tricks. Staying on top of these changes is key to avoiding fines and keeping your ads legal.
Here's why it matters:
1. New rules pop up often
The FTC updates its guidelines more than you might think. In August 2023, they rolled out fresh rules for online reviews and social media posts. These changes affect how influencers disclose partnerships and how companies handle customer feedback.
2. Penalties can hurt
Breaking FTC rules isn't just a slap on the wrist. It can cost you big time. For example:
| Violation | Potential Penalty |
|---|---|
| Per day, per violation | Up to $11,000 |
| Deceptive practices | Fines + legal fees |
| COPPA violations | Millions (e.g., YouTube's $170M fine) |
3. Tech changes fast, rules follow
As new platforms and ad types pop up, the FTC adapts. They're looking closely at things like:
- AI in advertising
- Kids' privacy online
- Environmental claims ("greenwashing")
How to stay in the loop:
- Check FTC.gov regularly: They post updates and guidance.
- Follow FTC on social media: Quick way to catch announcements.
- Join industry groups: They often break down new rules.
- Set Google Alerts: For "FTC advertising guidelines" and similar terms.
Take action when rules change:
- Review your marketing practices
- Update disclosure policies
- Train your team on new requirements
- Audit your ads and partnerships
Remember: The FTC gives businesses time to adapt. When they announced changes to the Safeguards Rule (about data security), they added a 6-month grace period for companies to get up to speed.
Bottom line: Staying informed isn't just good practice—it's a must for avoiding trouble with the FTC.
Conclusion
Following the FTC's advertising rules isn't just about avoiding fines—it's about building trust with your audience and running an ethical business. Let's recap the 10 key rules for 2024:
- Be clear about connections
- Make honest, backed-up claims
- Identify native ads
- Use real endorsements
- Follow influencer guidelines
- Make disclosures easy to spot
- Explain free trials fully
- Be honest about green claims
- Protect kids' privacy
- Stay updated on FTC changes
Why does this matter? Because the consequences of non-compliance can be severe. For example:
| Violation Type | Potential Penalty |
|---|---|
| Per day, per violation | Up to $11,000 |
| Deceptive practices | Fines + legal fees |
| COPPA violations | Millions (e.g., YouTube's $170M fine) |
Real-world cases show the FTC isn't messing around:
- Lord & Taylor faced action for hiring 50 influencers to post about their product on Instagram without proper disclosure.
- L'Oreal and Warner Bros got in hot water for not having influencers clearly disclose sponsored content.
"The FTC is expected to increase enforcement actions against influencer campaigns that do not clearly identify as sponsored content." - FTC Guidelines
To stay on the right side of the law:
- Check FTC.gov often for updates
- Follow the FTC on social media
- Join industry groups for quick breakdowns of new rules
- Set up Google Alerts for FTC advertising guidelines
Remember, these rules apply across all platforms and content types. Whether you're writing blog posts, creating video scripts, or crafting social media updates, FTC compliance needs to be top of mind.
Tips for Following the Rules
To stay on the right side of FTC regulations, follow these practical tips:
1. Create a compliance checklist
Make a checklist covering key FTC requirements:
| Requirement | Action Item |
|---|---|
| Disclosure | Include clear, conspicuous disclosures for all sponsored content |
| Honesty | Ensure all claims are truthful and backed by evidence |
| Transparency | Identify native ads and sponsored content clearly |
| Endorsements | Use only genuine testimonials and disclose any material connections |
| Privacy | Protect children's privacy in ads targeting minors |
2. Educate your team and partners
Hold regular training sessions on FTC guidelines. In 2023, the FTC updated its Endorsement Guides, so make sure everyone's up to speed.
3. Review content before publishing
Set up a review process to catch potential violations. Pay special attention to:
- Disclosure placement (should be early and obvious)
- Clarity of language (avoid vague terms like "thanks to [brand]")
- Consistency across platforms (disclose in every post)
4. Keep detailed records
Document your compliance efforts:
- Save copies of all sponsored content
- Log influencer agreements and payments
- Record dates of team training sessions
5. Stay updated on FTC changes
The FTC regularly updates its guidelines. To stay informed:
- Follow the FTC on social media
- Set up Google Alerts for "FTC advertising guidelines"
- Join industry groups for quick breakdowns of new rules
6. Use platform-specific tools
Many social media platforms offer built-in disclosure tools. For example, Instagram's "Paid partnership with" feature clearly marks sponsored posts.
7. Be extra careful with health claims
The FTC scrutinizes health-related ads closely. If you're in the health, wellness, or lifestyle sectors, double-check all claims for accuracy and substantiation.
8. Monitor your influencers
If you work with influencers:
- Provide them with clear guidelines on FTC compliance
- Regularly check their content for proper disclosures
- Take action if you spot violations (request corrections or end partnerships if necessary)
9. Use clear language in disclosures
Avoid vague terms. Instead, use straightforward language like:
- "This is an ad for [Brand]"
- "[Brand] paid me to tell you about this product"
- "I received this product for free from [Brand]"
10. Learn from others' mistakes
Study FTC enforcement actions to understand what not to do. For instance:
"Lord & Taylor faced action for hiring 50 influencers to post about their product on Instagram without proper disclosure." - Federal Trade Commission
FAQs
What are the FTC rules for advertising?
The FTC rules for advertising focus on three key principles:
- Truthfulness: All claims must be honest and accurate.
- Non-deception: Ads cannot mislead consumers.
- Evidence-based: Advertisers must have proof to back up their claims.
These rules apply to all forms of advertising, including:
- Traditional media (TV, radio, print)
- Digital platforms (websites, social media)
- Influencer marketing
The FTC also enforces specific laws for certain products:
| Product Type | Additional Rules |
|---|---|
| Consumer leases | Clear disclosure of terms |
| Credit offers | Accurate APR information |
| Mail order/phone sales | Timely shipping and refund policies |
Why is it important to follow FTC guidelines?
Following FTC guidelines is crucial for several reasons:
- Legal compliance: Avoiding fines and legal action.
- Consumer trust: Building credibility with your audience.
- Fair competition: Ensuring a level playing field in the market.
The FTC actively enforces these rules. For example:
In 2017, the FTC settled its first case against influencers Trevor Martin (TmarTn) and Thomas Cassell (Syndicate) for endorsing the gambling service CSGOLotto without disclosing that they owned the company.
This case highlights the importance of transparency in influencer marketing.
Key takeaway: Adhering to FTC guidelines protects both businesses and consumers. It's not just about avoiding penalties—it's about maintaining integrity in advertising.
