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Rules & disclosure

Ad disclosure rules for creators and small businesses: FTC (US), ASA & CMA (UK), EU

By Published Last updated 11 min read

This guide is general information, not legal advice. Rules and fees change — always check the competent official authority or ask a licensed lawyer before acting.

You sent a creator a free box of pastries. A skincare brand mailed you a serum and an affiliate code. Do these need #ad? Is #sponsored enough? Does the paid partnership toggle cover you? The answers are similar, but not identical, in the United States, the United Kingdom and the European Union.

This guide sets out what the regulators themselves publish: the Federal Trade Commission in the US, the Advertising Standards Authority and the Competition and Markets Authority in the UK, and the European Commission together with EU consumer law. Then it covers where labels go on each platform and walks through three illustrative examples. Please read it as general information, not legal advice: rules are updated, and a lawyer who knows your market has the final word.

What counts as an ad: the connection test

All three systems start from the same idea. If there is a connection between the person posting and the brand that the audience would not expect, and that connection could change how they read the post, it has to be made obvious. The FTC tells creators to disclose any financial, employment, personal or family relationship with a brand, and it is explicit that free or discounted products and other perks count, not only cash [1].

In the UK, the CMA's guidance for content creators defines an incentive broadly: money, commission, discounts, gifted products, freebies and event invitations all count, even when nothing was asked in return, and the guidance applies whatever the size of your audience [6]. In the EU, the Unfair Commercial Practices Directive treats failing to identify the commercial intent of a practice, when it is not already clear from context, as a misleading omission, and its blacklist bans paid promotion dressed up as editorial content [10]. The European Commission's Influencer Legal Hub adds that influencers who regularly advertise or sell products are treated as traders under EU consumer law [9].

A quick rule of thumbIf you received anything of value, or you own, co-own or work for the brand, assume the post needs a clear label unless a lawyer tells you otherwise.

United States: what the FTC asks of creators and brands

Wording and placement

The FTC wants the disclosure placed with the endorsement itself, where it is hard to miss. A line in your bio, at the very end of a video, behind a “more” link or buried in a block of hashtags is likely to be missed. On images and stories, put the label on the image and leave time to read it; in a video, say it and show it; in a live stream, repeat it for people who join late. Plain words work: “ad”, “sponsored” or “Thanks to [brand] for the free product”. Vague tags such as “sp”, “collab”, “thanks” or “ambassador” on their own are not enough [1].

The FTC's longer question-and-answer page adds detail. Starting a post with “Ad”, “#ad” or “Paid ad” would likely be effective, and “Sponsored by XYZ” is clearer than “Sponsored” alone. If a free product is all you received, “Gifted by XYZ” should be sufficient, but “gifted” with no brand name is ambiguous. For affiliate links, say near the link that you earn a commission on purchases; the words “affiliate link” on their own are not considered adequate [2]. The 2023 revision of the Endorsement Guides defined “clear and conspicuous”, extended endorsements to tags and fake reviews, and warned that a platform's built-in tool may not be enough by itself [3].

The Consumer Reviews and Testimonials Rule

Since 21 October 2024 the FTC also has a binding trade regulation rule, 16 CFR Part 465. According to the FTC's own summary, it prohibits writing, selling or knowingly buying fake reviews and testimonials, tying review incentives to a positive or negative sentiment, undisclosed insider reviews, company-controlled review sites posing as independent, and suppressing reviews through threats or false accusations; courts can impose civil penalties for knowing violations [4].

One section, §465.8, deals with fake indicators of social media influence. The text makes it an unfair or deceptive practice for anyone to sell or distribute, or to buy or procure, such indicators when they knew or should have known the indicators were fake and the indicators could be used, or do, materially misrepresent influence or importance for a commercial purpose [5]. The FTC explains that “fake” covers indicators generated by bots, by accounts not associated with a real individual, by accounts created with someone's information without consent, by hijacked accounts, or that otherwise do not reflect a real person's or entity's activities. It adds that a business is not liable merely because a vendor secretly supplied fake indicators without red flags, and that asking existing followers to follow a business account is not a fake indicator [4]. If you are weighing any paid growth service, read §465.8 yourself and ask counsel how it applies to your situation.

United Kingdom: ASA, CMA and the DMCC Act

Two bodies share the ground in the UK. The ASA enforces the advertising codes, and the CMA enforces consumer protection law. Together they produced the “Influencers' guide to making clear that ads are ads”, now in its third edition; the ASA notes that it will be updated for the unfair commercial practices provisions of the Digital Markets, Competition and Consumers Act 2024, while saying the advice remains broadly correct [7].

The CMA's page for content creators is the most specific of all the regulators on wording. It recommends a clear label such as “Ad”, “Advert”, “Advertising” or “Advertisement”, placed so it is visible as soon as someone engages with the content, without scrolling, expanding a caption or opening your bio. Videos and podcasts need the label at the start, and each promotional item in a carousel needs its own. It lists labels it considers unclear, including #gifted, #aff, #collab, #spon and #sponsored, plus phrases like “in association with” or “thank you”. A brand tag, a discount code or an affiliate link alone is not enough. Built-in “paid partnership” tools may be used if the label is clear; if not, add #Ad upfront [6].

The DMCC Act 2024 also lists banned practices around consumer reviews. Paragraph 13 of Schedule 20 covers submitting or commissioning a fake consumer review, or one that hides that it was incentivised, publishing reviews in a misleading way, and offering services to traders to do either [8]. That schedule talks about consumer reviews; it does not contain a separate paragraph on follower or like counts.

European Union: the directive and the Influencer Legal Hub

EU law is set by directives that each member state writes into its own law, so the exact wording and the enforcing authority differ from country to country. The baseline is the Unfair Commercial Practices Directive 2005/29/EC: hidden commercial intent can be a misleading omission, and posing as a consumer when you act for a business is blacklisted [10]. Directive (EU) 2019/2161 added two blacklist points on reviews, banning claims that reviews come from verified buyers without reasonable checks, and banning the submission of false consumer reviews or endorsements, or the misrepresentation of reviews or social endorsements. Its recital 49 names “likes” on social media as an example of a fake endorsement [11].

For day-to-day practice, the Commission's Influencer Legal Hub is the starting point. It reflects the Consumer Protection Cooperation Network's five key principles on social media marketing disclosures and points to national guidance for label wording [9]. In practice, write the label in the language of the post and check your national authority's guidance.

US vs UK vs EU at a glance

Disclosure rules compared (general information, not legal advice)
QuestionUnited StatesUnited KingdomEuropean Union
Main bodiesFTCASA (codes) and CMA (consumer law)Commission guidance; national authorities enforce
Gifts count?Yes, free or discounted products count [1]Yes, even with nothing asked in return [6]Yes if commercial intent is not clear from context [10]
Suggested labelAd, #ad, Sponsored by [brand] [2]Ad, Advert, Advertising, Advertisement [6]Check national guidance via the Legal Hub [9]
Platform toggle enough?Not necessarily [3]Only if the label is clear [6]Check national guidance
Fake reviewsBanned under Part 465 [4]Banned under DMCC Act Sch. 20 [8]Blacklisted since 2019/2161 [11]
Fake social signals§465.8 on fake indicators [5]Not a separate paragraph in Sch. 20Recital 49 mentions fake likes [11]

Where to put the label on Instagram, TikTok and YouTube

  • YouTube: in YouTube Studio, tick the paid promotion box on the video's details page, or in the mobile app answer Yes under “Paid promotion & brands”. YouTube then shows a disclosure label at the start of the video, and states that creators and their partners remain responsible for their legal obligations [12].
  • TikTok: turn on the Commercial Content Disclosure setting when you post promotional content; TikTok says creators must do this, that the Paid partnership label does not change how a post is recommended, and that legal requirements vary by country [13].
  • Instagram: business and creator accounts can add a paid partnership label in the post settings. Regulators treat such tools as a help, not a shield, so add “Ad” at the start of the caption or on the story frame as well [6].

The safest pattern everywhere is to combine the platform label with your own words at the top of the caption and on screen, in the language of the post. If you post short videos across several apps, see our comparison of TikTok, Reels and Shorts for how each format handles captions and on-screen text.

Gifts, affiliate links, your own products and employees

  • Gifted products: disclose who gave it. “Gifted by [brand]” can work in the US if the product is all you received [2]; in the UK, the CMA asks for an ad label and treats #gifted alone as unclear [6].
  • Affiliate links: say near the link that you earn a commission, and label the post itself where the UK rules apply [2].
  • Your own products: the CMA says that if you own, co-own or work for a brand, or it belongs to family or friends, you must make that clear [6]. A shop posting on its own branded account is usually obvious from context; a founder praising the product on a personal account is not.
  • Employees: the FTC says listing your employer in your profile is not enough; the connection belongs in the post [2].

Three illustrative examples

These businesses are invented to show how the rules apply; they are not customer stories.

A Brooklyn bakery sends a local food creator a celebration cake, no payment, no script. The creator loves it and posts a Reel. Under FTC guidance the free cake is a material connection, so the caption should open with something like “Gifted by [bakery]” or “Ad”, and the label should also appear on screen [1].

A UK skincare brand gives a creator a personal discount code and a commission on sales. Under the CMA guidance the code alone is not a disclosure, so each post, story frame and video needs “Ad” upfront, plus the paid partnership tool where it is clear [6].

A Dutch ceramics studio invites three creators to a free workshop and asks for nothing. Under EU law the commercial intent must be clear from the content or the context [10], so the studio asks the creators to label any post about the day in Dutch or English, matching the post, and checks Dutch national guidance through the Commission's hub [9].

How foyup fits in, and what it does not do

foyup sells social media services, such as Instagram follower packages and TikTok view packages, and it does not provide legal advice or make any post compliant. The disclosure rules above apply to your own posts and partnerships whether or not you use any service, and nothing here changes your reach, sales or legal position.

On the practical side, an order needs nothing more than the public link or username of the profile or post; we never ask for a password. Before you pay, each package lists its price in USD, the expected delivery window and its refill period. That period begins once delivery is complete, and within it any drop is topped up at no charge up to the delivered quantity, with four exceptions: the account was switched to private, the post was removed, the link was wrong or the username was changed. Each order gets a number you can follow on the track-order page, and whatever is not delivered is refunded. The business is operated by Social Developer LTD and has no affiliation with Instagram, TikTok, YouTube or any other platform.

Before buying any growth service, from us or anyone else, read §465.8 and the rules that apply in your market, and ask counsel if you are unsure. Our guide on how to vet a growth service lists the questions to ask.

Questions about this topic

Is #sponsored enough as a disclosure?

It depends where your audience is. The FTC says “Sponsored” at the start may work, but “Sponsored by [brand]” is clearer. The CMA in the UK lists #sponsored among labels it considers unclear and recommends “Ad” instead. Using “Ad” at the start is the option all three systems accept most readily.

Do I need to disclose a gifted product if the brand did not ask me to post?

Generally yes. The FTC says free or discounted products are a material connection even when no post was required, and the CMA says freebies count even when nothing was asked in return. If you bought the product yourself, no disclosure is needed.

Does the paid partnership label count as disclosure on its own?

Not reliably. The FTC says a platform tool may not be adequate by itself, and the CMA accepts it only if the label is clear and easy to see. Add your own “Ad” at the start of the caption or video.

Do UK or EU rules apply to a creator based in the US?

They can. The FTC applies US law when a post can reasonably be expected to affect consumers in the US, wherever the creator lives, and notes that other countries have their own rules. If a large part of your audience is in the UK or the EU, follow the stricter labelling and check with a local lawyer; this is general information, not legal advice.

Sources

Official pages and references the editorial team read while writing this guide. They may change after the access date, so check them directly before deciding anything.

  1. Disclosures 101 for Social Media InfluencersFederal Trade Commission · Accessed:
  2. FTC's Endorsement Guides: What People Are AskingFederal Trade Commission · Accessed:
  3. Federal Trade Commission Announces Updated Advertising Guides to Combat Deceptive Reviews and EndorsementsFederal Trade Commission · Accessed:
  4. The Consumer Reviews and Testimonials Rule: Questions and AnswersFederal Trade Commission · Accessed:
  5. 16 CFR 465.8 Misuse of fake indicators of social media influenceElectronic Code of Federal Regulations (eCFR) · Accessed:
  6. Social media endorsements: guidance for content creatorsCompetition and Markets Authority (GOV.UK) · Accessed:
  7. Influencers' guide to making clear that ads are adsAdvertising Standards Authority / CAP · Accessed:
  8. Digital Markets, Competition and Consumers Act 2024, Schedule 20legislation.gov.uk · Accessed:
  9. Influencer Legal HubEuropean Commission · Accessed:
  10. Directive 2005/29/EC concerning unfair business-to-consumer commercial practices in the internal marketEUR-Lex · Accessed:
  11. Directive (EU) 2019/2161 as regards the better enforcement and modernisation of Union consumer protection rulesEUR-Lex · Accessed:
  12. Add branded content restrictions & disclosure labelsYouTube Help · Accessed:
  13. About the Commercial Content Disclosure setting for creatorsTikTok Ads Manager Help Center · Accessed:

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