BrandTreatyFTC Rules for Creators in 2026: How to Disclose a Paid Partnership the Right Way
If a brand gives you money or free product, the FTC says you have to disclose it — clearly. Here's what counts as a connection, and how to label it the right way.
This one isn't about contracts — it's about the law. If a brand gives you money, free product, or a commission, the U.S. Federal Trade Commission (FTC) says you have to tell your audience. It's called disclosure, and it's simpler than it sounds.
The good news: getting it right takes a few seconds per post. The bad news: getting it wrong can mean trouble for you and the brand. Here's the plain-English version.
Quick note: this is general guidance to help you stay organized and honest — not legal advice. The FTC's own pages (the Endorsement Guides and Disclosures 101 for Social Media Influencers) are the source of truth, and guidance evolves — check them for your situation.
What you have to disclose: "material connections"
The FTC's rule centers on a phrase: a material connection. That's any relationship with a brand that your audience wouldn't guess — and that might affect how they judge what you say.
You have a material connection (and must disclose) if a brand:
- Paid you any money, or
- Gave you a free or discounted product, or
- Pays you an affiliate commission on sales, or
- Gave you a unique discount code you earn from, or
- Has an employment or family relationship with you.
Two things surprise people. First: free product counts — even if you weren't paid cash and weren't told to post. Second: it's on you even if the brand never asks you to disclose. Their silence doesn't remove your responsibility.
The golden rule: clear and conspicuous
The whole standard comes down to two words: clear and conspicuous. In plain terms, a regular person scrolling should easily notice the disclosure without hunting for it.
That means the disclosure should be:
- In the post itself — not only on your profile, bio, or an "About" page.
- Hard to miss — near the start, not buried at the bottom of 20 hashtags or hidden behind "...more."
- Before they engage — visible up front, not after they've already watched or clicked.
- In plain language — the same language as the rest of your post.
If someone has to tap, scroll, or squint to find it, it's not conspicuous — and it doesn't meet the standard.
Use words people understand
The FTC prefers simple, unmistakable terms:
- ✅ "Ad," "Sponsored," "Paid partnership," "[Brand] gave me this"
- ⚠️ "#sp," "#collab," "#ambassador," "thanks [brand]" — these can be vague or easy to misread, and may not be enough on their own.
"#ad" is fine when it's easy to see. The problem is never the word — it's hiding it. Put it where people actually look.
Where to put it on each platform
Different formats, same idea — make it impossible to miss:
| Format | Where the disclosure goes |
|---|---|
| Instagram / TikTok caption | Near the start, before the "more" cutoff |
| Photos & Stories | Superimposed on the image, large enough to read |
| Video (Reels, YouTube, TikTok) | Said in the video (out loud and/or on screen) — not just the description |
| Livestream | Repeated periodically, so late joiners see it |
For video especially: a disclosure that lives only in the description box doesn't cut it, because most people never open it.
Don't rely on the platform's label alone
Instagram's "Paid partnership" tag and similar tools are good — use them. But the FTC has been clear that you shouldn't depend on them by themselves, because they can be small or easy to overlook. The safe move: use the platform tool and add a clear disclosure in your own words.
Who's on the hook — and why it matters
Historically, the FTC has focused much of its enforcement on brands and agencies, and has sent warning letters putting creators on notice. But the rules apply to creators directly, and the law allows civil penalties that can reach into the tens of thousands of dollars per violation.
Just as important: a missing disclosure can quietly damage trust with your audience — the thing your whole business runs on. Disclosing isn't a tax on your content. Done well, it signals you're a pro who plays it straight.
A 10-second checklist before you post
- Did the brand give me money, product, a code, or a commission? → Disclose.
- Is the word "ad" or "sponsored" near the top (and on screen for video)?
- Would a stranger notice it in two seconds?
- Am I only saying things about the product I actually believe?
If you can check all four, you're in good shape.
Where this fits in your bigger picture
FTC disclosure is one piece of running clean, professional deals. The contract itself is another — and that's where the money terms hide. When you're ready, learn how to read a brand deal contract and the red flags worth catching before you sign.
BrandTreaty keeps the deal side organized — your deliverables, usage windows, exclusivity, and payments in one place — so you can focus on making content your audience trusts. Disclose honestly, track your obligations, and you'll build the kind of reputation brands keep coming back to.
Frequently asked questions
Do I have to disclose free products from brands?
Yes. The FTC treats free or discounted products as a 'material connection.' If a brand sent you something for free and you talk about it, your audience needs to know — even if you weren't paid cash and weren't told to post.
Is #ad enough to be compliant?
It can be, if it's easy to notice. The word 'ad' or 'sponsored' should be near the start of your caption or on the screen — not buried at the end of a long block of hashtags, hidden behind 'more,' or only on your profile. The test is whether a regular viewer would actually see it.
Does the platform's 'Paid partnership' label cover me?
It helps, but the FTC says don't rely on it alone. Built-in tools can be easy to miss, so the safest move is to also add a clear disclosure in your own words in the caption or the video itself.
Who is responsible if a post isn't disclosed — me or the brand?
Both can be. You're responsible for disclosing your own connections even if the brand never mentions it. But brands and agencies that direct, finance, or benefit from an endorsement also share liability when a disclosure is missing.
BrandTreaty is an organizational tool, not legal advice. The numbers here are industry ranges, not fixed rates — your niche, engagement, and audience matter more than follower count. Always confirm terms yourself before you sign.