18 Jan 2025

FTC Guidelines for Affiliates, Creators and Brands 2025

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If you're here that means you're either a marketer/brand owner or a Creator. In this blog post we have highlighted in simple words along with examples on how you can be compliant with FTC guidelines. It's best to not get creative or find loopholes to work around these guidelines.

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Understanding FTC Disclosure Requirements

When promoting products or brands online, it's essential to comply with the Federal Trade Commission (FTC) disclosure guidelines. These rules ensure transparency and honesty, protecting both consumers and content creators. Here's a comprehensive and easy-to-understand guide on who needs to disclose, what to disclose, and how to do it effectively.

Who Needs to Provide Disclosures?

If you receive any form of payment or benefit from a company whose products or brands you discuss, you must follow FTC disclosure rules. This applies to more than just direct affiliate commissions. Various types of compensation require disclosure, including:

  • Monetary Payments: Direct cash payments for mentions or promotions.
  • Free Products: Receiving items at no cost in exchange for promotion.
  • Store Credit: Vouchers or credit given for future purchases.
  • Discounts: Special pricing or offers not available to the general public.
  • Free Services: Complimentary access to services as part of a promotion.
  • Exclusive Access: Invitations to special events, launch parties, or other exclusive gatherings.
  • Favors: Any other benefits provided by the company.

Whether you're a small blogger, a casual user on Twitter, or someone who occasionally shares posts on personal social media accounts, these rules apply. It doesn't matter if the compensation is minor or infrequent; any benefit received must be disclosed.

What Information Must Be Disclosed?

You need to clearly state that you've received compensation from the company whose products or services you're promoting. It's best to explain the nature of your relationship with the company. Here are some ways to do this:

  • Employment: If you work for the company, mention your role.
  • Commission: If you earn commissions from sales, state that.
  • Paid Advertising: If the company pays for advertisements and you accept these ads, disclose this arrangement.
  • Stock Ownership: If you own shares in the company, make that known.

Being transparent about your relationship helps maintain trust with your audience.

When Should Disclosures Be Made?

Disclosures must be made immediately and every time you mention the product or brand. The disclosure should be placed as close as possible to the statement or endorsement that requires it. For example:

  • Tweets: Include the disclosure within the 140-character limit of the tweet itself.
  • Blog Posts: Place the disclosure at the beginning of the post rather than at the end.
  • Social Media Posts: Ensure the disclosure is visible without requiring users to scroll extensively.

Avoid hiding disclosures on separate pages or burying them where they might be overlooked. The goal is to make sure the disclosure is seen right when you mention the product or brand.

No Exceptions to the Rules

It's important to remember that the FTC disclosure rules apply universally. No individual or organization is exempt, regardless of size or influence. Whether you're a major influencer or someone with a modest online presence, you must comply with these guidelines.

Making Disclosures Clear and Noticeable

Disclosures must be "clear and conspicuous," meaning they should be easily noticeable and understandable to the average person. Here’s what that entails:

  • Visibility: Disclosures should not be hidden or difficult to find.
  • Clarity: Use straightforward language that a typical consumer can easily understand.
  • Prominence: The disclosure should stand out, using adequate size, color contrast, and placement near the relevant content.

The FTC assesses disclosures based on whether a "reasonable consumer" would notice and understand them. If a significant number of people might miss the disclosure, it fails to meet the requirements.

Avoiding Loopholes

Some may try to find technical ways to comply with the letter of the law without truly being transparent. However, the FTC focuses on the spirit of the law, which is to ensure honest communication. Attempts to obscure disclosures, even if technically compliant, are likely to be deemed violations. Always aim for genuine transparency rather than trying to outsmart the rules.

Benefits of Clear Disclosures

Clear and conspicuous disclosures are beneficial for both consumers and content creators:

  • Trust Building: Transparency fosters trust between you and your audience.
  • Consumer Confidence: Honest disclosures help consumers make informed decisions.
  • Fair Competition: Ensures that ethical advertisers are not at a disadvantage compared to those who might try to be deceitful.
Adhering to FTC guidelines not only keeps you compliant but also upholds your integrity as a content creator.

Ensuring Your Disclosures Are Effective

To meet the FTC’s "clear and conspicuous" standard, consider the following factors:

  1. Placement: Position the disclosure near the related content or claim.
  2. Prominence: Use noticeable fonts, colors, and sizes to make the disclosure stand out.
  3. Avoid Distractions: Ensure that other elements on the page don’t overshadow the disclosure.
  4. Repetition: In cases where there are multiple mentions, repeat the disclosure as needed.
  5. Multimedia Considerations: Align disclosures with the medium (e.g., within videos or audio content).
  6. Duration: Display visual disclosures long enough for users to read and understand them.
  7. Language: Use simple and clear language that your audience can easily comprehend.
Pop-up on brand website highlighting Creator who will earn commission

Placement and Proximity

For maximum effectiveness, place disclosures close to the content that requires them. This proximity ensures that consumers immediately associate the disclosure with the relevant claim or endorsement. For example:

  • Same Screen: Ensure that both the disclosure and the promotional content appear on the same screen without requiring scrolling.
  • Avoid Scrolling Disclosures: Don’t place important disclosures at the bottom of a page where users might not see them.

If scrolling is unavoidable, use cues to indicate that a disclosure is present further down, or include a brief disclosure at the top with a link to more detailed information.

Using Hyperlinks for Disclosures

In some cases, especially with lengthy disclosures, using hyperlinks can be effective. However, ensure that:

  • Clarity: The hyperlink clearly indicates that it leads to a disclosure (e.g., "Sponsored Content Disclosure").
  • Visibility: The link is prominent and easily identifiable as a disclosure.
  • Relevance: The disclosure content is directly related to the promotional content.

Avoid vague terms like "Click here" or "Terms" without context, as they do not clearly convey the nature of the disclosure.

Interactive and Dynamic Disclosures

For websites and apps with interactive elements:

  • Floating Disclosures: Use sidebars or pop-ups that stay visible as users navigate.
  • Auto-Playing Disclosures: Ensure that any auto-played disclosures are accessible and not intrusive.
  • Fallbacks: Provide alternative disclosure methods for users with different devices or those who block certain scripts.

Remember, technical issues or user settings should not prevent the disclosure from being seen.

Disclosures and the Purchase Process

Disclosures related to compensation must be made before a user completes a transaction. This means:

  • Before Checkout: Inform users of any affiliate relationships or sponsorships before they add items to their cart.
  • Visibility: Ensure that disclosures are seen before the purchase decision is made, not just during checkout.

This transparency helps users understand any potential biases before making a purchase.

Handling Space Constraints

When limited space is an issue, especially on platforms like Twitter:

  • Simple Disclosures: Use concise terms like "Ad:" or "Sponsored" at the beginning of your post.
  • Clarity: Even within space constraints, make it clear that there is a financial relationship involved.

If a platform doesn't allow for adequate disclosure, consider whether it's appropriate to use that medium for promotions.

Ensuring Prominence

To make disclosures stand out:

  • Size: Make the disclosure text as large as or larger than surrounding content.
  • Color Contrast: Use colors that contrast with the background to make the disclosure noticeable.
  • Use of Graphics: Incorporate visual elements if they enhance visibility without causing confusion.

Regularly review your disclosures to ensure they remain prominent across different devices and screen sizes.

Avoiding Distractions

Ensure that disclosures are not overshadowed by other elements such as:

  • Animations or Videos: These can divert attention away from the disclosure.
  • Buttons and Links: If these are more visually dominant, the disclosure might be missed.
  • Pop-Ups: While they can be effective, they shouldn’t disrupt the user experience or hide the disclosure.

Keep the focus on the disclosure to ensure it is seen and understood.

Repetition of Disclosures

In situations where users might encounter multiple promotional claims:

  • Multiple Disclosures: Repeat disclosures in different sections to cover all instances.
  • Consistent Placement: Ensure that disclosures appear in a similar location each time for familiarity.

This approach reduces the chance that users will miss important information.

Handling Multimedia Content

For content that includes various media types:

  • Integrated Disclosures: Include disclosures within the same medium (e.g., within the video or audio).
  • Consistent Messaging: Ensure that both visual and auditory disclosures convey the same information.
  • Accessibility: Consider users who may not engage with all media components, ensuring that disclosures are accessible in multiple formats.

This ensures that all users receive the necessary information regardless of how they consume the content.

Instagram Post Disclousre - #sponsored

Display Time for Visual Disclosures

When using text-based disclosures in videos or interactive media:

  • Adequate Time: Ensure the disclosure is visible long enough for users to read and comprehend it.
  • Avoid Flashing: Don’t make disclosures appear too briefly to ensure visibility.
  • Consistent Display: Keep disclosures on screen during relevant parts of the content.

This practice helps users fully understand the disclosure without feeling rushed.

Using Understandable Language

The language used in disclosures should be simple and clear:

  • Avoid Jargon: Terms like "affiliate marketing" or "tracking link" might confuse some users.
  • Be Direct: Use straightforward phrases like "Ad" or "Sponsored."
  • Provide Clarity: When necessary, link to more detailed explanations in plain language.

Clear language ensures that all users, regardless of their background, understand the nature of the disclosure.

In Summary

Complying with FTC disclosure rules is crucial for maintaining transparency and trust with your audience. By clearly and conspicuously disclosing any compensation or benefits received from promoting products or brands, you uphold ethical standards and avoid potential legal issues. Remember to place disclosures close to the relevant content, use clear and simple language, and ensure that disclosures are noticeable across all devices and media types. Following these guidelines not only keeps you compliant but also strengthens your relationship with your audience.

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