Disclaimer: This information is for educational purposes only. Nothing is intended to be legal advice. For inquiries about legal services, please complete a contact form.
March 14, 2025
In the past few years, there have been a series of warnings and fines issued by the Federal Trade Commission (“FTC”) to influencers for allegedly failing to sufficiently disclose sponsorships with certain brands on popular social media platforms Instagram and Tiktok.
With an increase of influencer marketing being pushed by brands, it is important now more than ever for brands and influencers alike to be familiar with proper disclosure laws to avoid a warning or fine for an allegedly deceptive advertisement. This is especially true because the perspective the FTC considers when making the determination whether an advertisement was deceptive due to improper ad disclosures is on the consumer–not the poster of the allegedly deceptive ad. As social media continues to evolve, we can expect to see new levels of disclosures that will be required.
One app that has managed to remain competitive throughout the past decade of social media trends is Instagram. When most users first downloaded the app, all they could do was post a singular photograph. Fast-forward to over a decade later, and now we have photo carousels of up to 20 photographs, stories, live streams, and Reels. Each type of post requires its own level of disclosures.
But first, when are endorsement disclosures required?
Disclosures are required when you endorse a product on social media and you have a relationship, i.e. material connection, with the brand. A “material connection” with a brand includes a personal, family, employment, or a financial relationship (such being paid and/or being given free or discounted products or services).
Second, what are some best practices to keep in mind for disclosure?
The FTC warns that disclosures are likely to be missed by consumers if they appear only at the end of posts or videos, or in a caption that requires a person to click “more.” Overall, the FTC’s guidance says to place the disclosure in an obvious and hard to miss way. This will vary depending on the medium. Essentially, the disclosure should be contained within the endorsement itself.
If the endorsement is in a picture on a platform like stories, FTC guidance says to superimpose the disclosure over the picture and make sure viewers have enough time to both 1) notice and 2) read the advertisement disclosure.
If the endorsement is made in a video, FTC guidance says the disclosure should be in the video by audio and visual means–not just in the caption or description of the video. This is because viewers are more likely to notice disclosures made in both audio and visual means. For example, some viewers may watch the video without sound and others may not notice superimposed words.
If making an endorsement is in a live stream, FTC guidance says the disclosure should be repeated periodically to ensure that viewers who only see part of the stream will hear the disclosure.
Additionally, don’t assume a social media app’s disclosure tools are sufficient. Make a point to educate yourself on whether additional disclosures are required.
Finally, in addition to adequately disclosing the endorsement, the FTC requires the endorsement to be truthful in order to properly comply with disclosure guidelines. This means not making any claims that are untrue–such as claiming that data shows a product makes you healthier when in fact there is no data to support such a claim.
The FTC has tons of resources available online for anyone looking to get familiar with proper disclosure requirements. For more information on the information contained in this blog post, see the FTC’s staff publication Endorsement Guide titled Disclosures 101 for Social Media Influencers.
This article is meant for informational purposes only and is not intended to serve as legal advice or guidance for your particular situation.
If you would like tailored legal guidance on how to best adhere to legal requirements for proper endorsement disclosure on social media, send my firm a message. I would be happy to help.
Disclaimer: This information is for educational purposes only. Nothing is intended to be legal advice. For inquiries about legal services, please complete a contact form.