FTC Sponsorship Disclosure Guide for Content Creators

FTC Sponsorship Disclosure

An FTC sponsorship disclosure is a clear and conspicuous explanation of a creator's material connection to a brand when that connection could affect how U.S. consumers evaluate an endorsement.

The phrase does not refer to a form that creators submit to the Federal Trade Commission. It describes disclosure practices under the FTC's truth-in-advertising framework and its Endorsement Guides, which explain how the FTC Act applies to endorsements, testimonials, reviews, and influencer marketing.

The FTC revised the Endorsement Guides in 2023. The update added more guidance about social-media tags, virtual influencers, platform disclosure tools, advertiser and intermediary responsibility, and what “clear and conspicuous” means.

What is a material connection?

A material connection is a relationship between the creator and advertiser that viewers might consider important when evaluating the creator's message. It can include:

• Payment or a guaranteed sponsorship fee
• Free or discounted products and services
• Affiliate commissions or referral compensation
• Travel, lodging, meals, event access, or other perks
• Employment or ownership
• A family or personal relationship
• Entry into a sweepstakes or another meaningful incentive
• A continuing ambassador or consulting relationship
• Any other benefit that could affect the weight or credibility of the endorsement

The connection does not need to make the opinion dishonest. The FTC says creators should disclose even when they believe their review is unbiased.

What does clear and conspicuous mean?

A disclosure should be easy for ordinary viewers to notice, read, hear, and understand. The FTC considers the full presentation, including:

• Placement: Is it close to the endorsement and difficult to miss?
• Prominence: Does it stand out from surrounding images, links, and text?
• Clarity: Does the wording plainly explain the relationship?
• Presentation: Is on-screen text readable and displayed long enough?
• Audio: Can viewers hear the disclosure over music or other sound?
• Platform behavior: Is the disclosure hidden after “more,” in comments, or behind another interaction?
• Repetition: Will viewers who join a livestream late still receive it?
• Language: Is it in the same language as the endorsement?

There is no universal character count, screen duration, or mandatory sentence that works in every context.

FTC disclosure guidance for YouTube videos

For a video endorsement, the FTC says the disclosure should appear in the video rather than only in the description.

If the endorsement is communicated both visually and audibly, a simultaneous visual and spoken disclosure is more likely to be clear and conspicuous. This matters because some viewers watch with the sound off, while others may not notice on-screen text.

For a sponsored segment in the middle of a longer video, place the disclosure immediately before or at the beginning of that segment. A disclosure only at the end is easier to miss. A disclosure only at the beginning may also be inadequate when viewers are sent to a timestamp that skips it.

For livestreams, repeat the disclosure periodically because viewers can enter at any time.

Examples of clearer FTC disclosure wording

The FTC does not require these exact phrases, but straightforward wording can include:

• “This video is sponsored by Acme.”
• “Acme paid me to create this segment.”
• “Acme sent me this product for free.”
• “I earn a commission when you purchase through these links.”
• “Acme paid for this trip.”
• “I work for Acme.”
• “Ad” or “#ad” where it is easy to notice and understand
• “Sponsored by Acme” near the endorsement

The sponsor's identity may matter. “Sponsored by XYZ Agency” can be misleading if viewers do not realize that the actual product company funded the endorsement.

Wording the FTC may consider unclear

Depending on context, weak disclosures can include:

• “Collab”
• “Partner”
• “Ambassador” by itself
• “Thanks Acme”
• “SP,” “Spon,” or other shorthand
• “Endorsement”
• “Commissionable link”
• “Affiliate link” without explaining the financial relationship
• A brand-specific hashtag in which “ad” is difficult to notice
• A disclosure buried among many links and hashtags
• A statement placed only in comments or on a profile page

The issue is not whether a creator used a particular hashtag. The issue is whether viewers understand the material connection.

FTC disclosure vs. YouTube paid-promotion label

Requirement	FTC sponsorship disclosure	YouTube paid-promotion declaration
Main purpose	Helps U.S. consumers understand a material connection	Tells YouTube the video includes an applicable commercial relationship
Who controls it?	Creator and advertiser are responsible for the disclosure	Creator selects the declaration in YouTube Studio
Where does it appear?	In or with the endorsement, based on the content format	YouTube displays its own notice near the beginning
Is one a substitute for the other?	No	No
Does it use one mandatory script?	No; it must be clear and conspicuous in context	YouTube supplies its platform notice

YouTube explicitly says creators and brands remain responsible for local legal obligations. The FTC says creators should not assume a platform tool is sufficient by itself.

Who is responsible?

The creator is responsible for making required disclosures and for expressing honest opinions. The advertiser can also have responsibility for instructing, monitoring, and correcting endorsers. Agencies and other intermediaries may face responsibility depending on their role.

A brand's approval process should therefore include checks for:

• The disclosure wording and sponsor identity
• Placement in the actual edit
• Readability on mobile screens
• Spoken disclosure when appropriate
• Description and affiliate-link language
• Repeated disclosure in livestreams
• Truthfulness and support for product claims

Approval should not force a creator to make an endorsement that does not reflect the creator's experience.

Does U.S. FTC guidance apply to creators outside the United States?

It may apply when it is reasonably foreseeable that the content will reach and affect U.S. consumers. Creators may also need to follow the advertising rules of their own country and any other markets targeted by the campaign.

This glossary entry is general educational information, not legal advice for a specific campaign.

Related terms

Sponsorship Disclosure, Sponsorship, Sponsored Content, Sponsored Video, Brand Deal, and Approval Process

Frequently asked questions

Does the FTC require the hashtag #ad?

The FTC does not require one exact hashtag. “Ad” or “#ad” can be effective when it is easy to notice and understand, but placement and context still matter.

Is YouTube's paid-promotion label enough for the FTC?

Not necessarily. The FTC says a platform's built-in tool is not guaranteed to provide an adequate disclosure. Creators should add their own clear disclosure and also use YouTube's required declaration.

Can the disclosure be only in the video description?

For a video endorsement, the FTC says the disclosure has the best chance of being clear and conspicuous when it is in the video itself. The description can repeat it but should not be the only disclosure.

Do free products require FTC disclosure?

They can. A free or discounted product is a financial relationship for disclosure purposes when the connection could affect how viewers evaluate the endorsement.