Navigating the FTC’s Updated Endorsement Guidelines for Influencer Content

The Federal Trade Commission (FTC) recently announced new endorsement guidelines aimed at deceptive advertising rules, which took effect in October 2024. The FTC Final Rule Banning Fake Consumer Reviews and Testimonials promotes greater transparency and authenticity in reviews and endorsements, and allows the agency to strengthen enforcement, seek civil penalties against violators, and deter AI-generated fake reviews. These new guidelines significantly impact how influencers, brands, and agencies manage their partnerships and testimonials moving forward.

The updated FTC endorsement guides are focused on increasing transparency in advertising and target deceptive practices such as fake and misleading endorsements and undisclosed influencer partnerships in order to protect consumers. Penalties for non-compliance include substantial fines of up to $43,000 USD per violation, along with other potential consequences.

Let’s take a look at what US-targeting influencers, brands, and agencies need to know and implement to ensure compliance.

Influencers Must Disclose Material Connections

Influencer content MUST include disclosure of a material connection whether it involves financial compensation, a gifted product, or if there is an employment, personal, or family relationship. The brand, influencer, and any agencies involved share the responsibility for ensuring the appropriate disclosers are made.

Relying solely on a platform’s “Paid Partnership” tool without additional clarification in the content is insufficient. Consumers should be made aware of the relationship between the influencer and the brand upfront, with disclosures included in the caption, spoken word, and visual elements as necessary.

Note, this does not apply to unsolicited social media posts made by consumers independently.

Clear and Conspicuous Disclosures

Transparency is essential. For influencer content, disclosures must be ‘clear and conspicuous’ and positioned so that viewers can easily see them when engaging with the content; they should be unavoidable for the consumer and easy to understand for ordinary, reasonable consumers.

The nature of the endorsement must be explicitly stated in an easily understood manner; including the hashtag #ad in the caption is no longer sufficient, and vague or hidden language should be avoided. This requires moving beyond the caption and incorporating disclosures that are both visible and verbal within the content.

Phrases like “#ad” #[Brand]Partner “Sponsored by [Brand]” should be included in the content itself or mentioned verbally in videos, appearing early in the content rather than buried in captions, a list of hashtags, or at the end of a post. It is recommended that influencers include this information both in their captions AND in their videos to avoid penalties.

Given the varying rules and requirements across different content types and platforms, it’s crucial to stay up-to-date and ensure that brands and agencies instruct influencers to include the necessary disclosures.

Influencer Testimonials must be Honest

Influencer endorsements must be genuine and reflect the influencer’s honest opinion about a product or service they have actually used. Influencers are prohibited from endorsing products or services they have not personally experienced or from speaking positively about products they did not enjoy.

Brands cannot require influencers to review a product or service with a particular sentiment but can supply suggested phrases or scripts for posts. However, influencers should only use them if they accurately reflect their own views.

The FTC has provided clear, easy-to-understand documents and answers to common questions to help brands navigate the requirements for influencer disclosures and partnerships.

Below are a few helpful resources:

FTC’s Endorsement Guides: What People Are Asking

Disclosures 101 for Social Media Influencers

How Brands Can Ensure Compliance

According to the FTC, “advertisers need to have reasonable programs in place to train and monitor members of their network”.

1. The first step to ensuring compliance is to educate and guide influencers on their responsibilities to be compliant with the FTC requirements and the specific actions needed. This approach keeps a brand’s network informed and up to date so that influencers are not left to navigate the guidelines on their own or risk making mistakes.
2. It’s also essential to monitor influencer posts for compliance. This may involve implementing an approval process before posts go live or reviewing published content and requesting updates from influencers to meet compliance standards.
3. Be sure to take appropriate action if any concerning activities are found.

These updated FTC guidelines serve as a reminder of the value of transparency and authenticity in influencer partnerships. We recommend taking a cautious approach to ensure compliance with these new updates, rather than simply meeting some of the requirements or hoping to find loopholes in them.

While the regulations may feel challenging, they ultimately provide an opportunity for brands to build trust and credibility by fostering genuine connections. By prioritizing clear disclosures, honest endorsements, and being proactive, brands are not only aligned with the FTC’s requirements but are also ensuring long-term consumer trust.

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WRITTEN BY

Amanda Perry

Amanda is the Influencer Marketing Specialist at Reshift Media, where she strategizes and manages influencer marketing campaigns for various brands. She has worked in the influencer industry for the last 5 years, planning and executing influencer campaigns across many industries and brands.