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18 Jan 2025
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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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.
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:
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.
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:
Being transparent about your relationship helps maintain trust with your audience.
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:
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.
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.
Disclosures must be "clear and conspicuous," meaning they should be easily noticeable and understandable to the average person. Here’s what that entails:
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.
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.
Clear and conspicuous disclosures are beneficial for both consumers and content creators:
Adhering to FTC guidelines not only keeps you compliant but also upholds your integrity as a content creator.
To meet the FTC’s "clear and conspicuous" standard, consider the following factors:
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:
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.
In some cases, especially with lengthy disclosures, using hyperlinks can be effective. However, ensure that:
Avoid vague terms like "Click here" or "Terms" without context, as they do not clearly convey the nature of the disclosure.
For websites and apps with interactive elements:
Remember, technical issues or user settings should not prevent the disclosure from being seen.
Disclosures related to compensation must be made before a user completes a transaction. This means:
This transparency helps users understand any potential biases before making a purchase.
When limited space is an issue, especially on platforms like Twitter:
If a platform doesn't allow for adequate disclosure, consider whether it's appropriate to use that medium for promotions.
To make disclosures stand out:
Regularly review your disclosures to ensure they remain prominent across different devices and screen sizes.
Ensure that disclosures are not overshadowed by other elements such as:
Keep the focus on the disclosure to ensure it is seen and understood.
In situations where users might encounter multiple promotional claims:
This approach reduces the chance that users will miss important information.
For content that includes various media types:
This ensures that all users receive the necessary information regardless of how they consume the content.
When using text-based disclosures in videos or interactive media:
This practice helps users fully understand the disclosure without feeling rushed.
The language used in disclosures should be simple and clear:
Clear language ensures that all users, regardless of their background, understand the nature of the disclosure.
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.
SEVA helps your team focus on things that matter, automates the rest so they can get creative—not sedative.