TikTok Sponsorship Disclosure Guidelines

Complete FTC compliance guide: How to properly disclose sponsored content

Legal RequirementsFTC CompliantUpdated: November 2025

Why Disclosure Matters

Legal Requirements (FTC)

The Federal Trade Commission requires clear disclosure of any "material connection" between creator and brand. If you received anything of value (money, free products, affiliate commissions), you must disclose it.

Penalties: $10,000–$43,280 per violation

Ethical Reasons

Beyond legal compliance: maintains audience trust, preserves your credibility, protects you legally, and sets industry standards.

The Triple Disclosure Method (Best Practice)

For maximum compliance and transparency, use all three disclosure methods:

1

TikTok's "Branded Content" Toggle

Use TikTok's official branded content feature. Before posting, enable "Brand Content" toggle and add brand name.

Example:

Viewers see: "Paid partnership with [Brand]" label at top of video

2

#ad or #sponsored in Caption

Include #ad or #sponsored at the BEGINNING of your caption (not buried at end).

Example:

#ad Loving this new skincare routine from @BrandName! Here's why it works…

3

Verbal Disclosure in Video

Say out loud in the video that content is sponsored.

Example:

"Thanks to [Brand] for sponsoring today's video!" or "This video is in partnership with [Brand]."

What Content Requires Disclosure

Always Disclose

  • Paid sponsorships (brand pays you money)
  • Free products/services worth over ~$50
  • Affiliate links (you earn commission)
  • Brand partnerships/ambassadorships
  • Gifted products you choose to promote
  • Employee promoting own brand

No Disclosure Needed

  • Products you purchased yourself
  • General education (no specific brand)
  • Unsponsored comparisons
  • Unsolicited gift under $50 (not promoted)

Common Disclosure Mistakes

Disclosure Buried in Caption

Problem: Disclosure too far down; viewers may not see it without clicking "more"

Fix: Put #ad at the very beginning of caption

Using Vague Terms

Problem: #partner or #collab could mean unpaid collaboration

Fix: Use #ad or #sponsored explicitly

Not Disclosing Gifted Products

Problem: Thinking free products don't require disclosure

Fix: Disclose with #gifted or #ad (safer)

International Disclosure Requirements

United States (FTC)

Standard: "Clear and conspicuous" disclosure

Acceptable: #ad, #sponsored, "Paid partnership" label, Verbal disclosure

United Kingdom (ASA)

Standard: #Ad or "Ad" label required

Acceptable: #Ad (capital A), "Ad" written out, TikTok Branded Content toggle

European Union

Standard: Varies by country, disclosure must be clear

Acceptable: Local language (#Werbung in Germany), most use #ad

Consequences of Not Disclosing

FTC Enforcement

  • • Warning letter (first offense)
  • • Fines: $43,280 per violation (maximum)
  • • Required training on endorsement guidelines
  • • Public record of violation

TikTok Enforcement

  • • Content removal
  • • Account suspension or ban
  • • Loss of Creator Marketplace access

Frequently Asked Questions

Frequently Asked Questions

Advanced Disclosure Scenarios

Complex Partnership Situations

Long-Term Brand Ambassadorships

Situation: You're a 6-month brand ambassador posting regularly about the brand

Disclosure Required: Yes, every single video must include disclosure

Best Practice: Use TikTok's Branded Content toggle + #brandambassador or #ad in caption

Affiliate Links

Situation: You earn commission when viewers purchase through your link

Disclosure Required: Yes, affiliate relationships must be disclosed

Best Practice: Use #affiliate or #ad + mention "I earn commission" verbally

Gifted Products

Situation: Brand sent free product with no payment or posting requirement

Disclosure Required: Yes if product value is significant ($50+)

Best Practice: Use #gifted or #ad to be safe

Employee and Ownership Disclosures

Promoting Your Own Business

Situation: You own the company/product you're promoting

Disclosure Required: Yes, viewers need to know you have financial interest

Example: "I'm the founder of [Company]" or "This is my product"

Employee Promoting Employer

Situation: You work for the company and create content about it

Disclosure Required: Yes, material connection exists

Example: "I work at [Company]" or "As a [Company] employee..."

Platform-Specific Disclosure Tools

TikTok's Branded Content Features

How to Enable Branded Content Toggle

  1. 1. Create your video as normal
  2. 2. Before posting, tap "More options"
  3. 3. Toggle on "Brand content"
  4. 4. Search and add the brand's TikTok account
  5. 5. Post - viewers will see "Paid partnership with [Brand]" label

Benefits of Using Official Toggle

  • • Clear, standardized disclosure format
  • • Brands can track performance through TikTok analytics
  • • Demonstrates professionalism to brands
  • • Reduces risk of FTC violations
  • • Required for TikTok Creator Marketplace deals

Cross-Platform Disclosure Consistency

If you post the same sponsored content across multiple platforms, ensure proper disclosure on each:

TikTok:

  • • Branded Content toggle
  • • #ad in caption
  • • Verbal disclosure

Instagram:

  • • "Paid partnership" tag
  • • #ad in caption
  • • Story sticker disclosure

YouTube:

  • • Check "Paid promotion" box
  • • Verbal disclosure in video
  • • Written disclosure in description

Brand Contract Disclosure Clauses

What to Include in Your Contracts

Protect yourself legally by including clear disclosure requirements in brand contracts:

Standard Disclosure Clause

"Creator agrees to clearly and conspicuously disclose the material connection with Brand in accordance with FTC guidelines. Disclosure will include: (1) TikTok's Branded Content toggle, (2) #ad or #sponsored hashtag at beginning of caption, and (3) verbal disclosure in video content."

Liability Protection Clause

"Brand acknowledges that Creator will comply with all applicable advertising disclosure laws and regulations. Creator is not liable for FTC violations if Brand requests Creator to hide or minimize disclosures."

Red Flags: When Brands Ask You to Violate Rules

If a brand says: "Don't use #ad, just say you love it"

Your response: "I'm legally required to disclose. I can use #ad or we can't proceed."

If a brand says: "Put disclosure at the end of caption"

Your response: "FTC requires disclosure at the beginning where it's immediately visible."

If a brand says: "Don't mention it's sponsored"

Your response: Walk away. This violates federal law and puts YOU at legal risk.

Disclosure Best Practices by Content Type

Product Reviews and Unboxings

Sponsored Review

Start video: "Thanks to [Brand] for sponsoring today's review" + #ad in caption + Branded Content toggle

Gifted Product

Mention: "[Brand] sent me this to try" + #gifted or #ad in caption (safer to use #ad)

Affiliate Link

Say: "I earn commission if you use my link" + #affiliate or #ad in caption + link in bio

Tutorial and Educational Content

Sponsored Tutorial

Disclose upfront: "In partnership with [Brand], here's how to..." + #ad + Branded Content toggle

Product Integration in Tutorial

If brand paid for product placement: "Using [Brand] products (sponsored)" + #ad

Monitoring and Enforcement

How the FTC Monitors Compliance

Enforcement Methods

  • Consumer Complaints: FTC investigates reports from viewers
  • Automated Monitoring: AI tools scan for undisclosed sponsorships
  • Industry Sweeps: Periodic reviews of high-profile creators
  • Competitor Reports: Other creators may report violations
  • Brand Audits: Brands may be investigated, leading to creator review

Recent FTC Actions

The FTC has increased enforcement in recent years:

  • • 2023-2024: Multiple warning letters to influencers
  • • Fines issued to creators with repeated violations
  • • Brands held accountable for influencer non-compliance
  • • Increased focus on TikTok and short-form content

Self-Audit Checklist

Review your content monthly to ensure compliance:

□ All sponsored content has #ad or #sponsored at beginning of caption

□ Branded Content toggle enabled for all paid partnerships

□ Verbal disclosures included in videos

□ Affiliate relationships clearly stated

□ Gifted products marked appropriately

□ No ambiguous terms like #collab without additional disclosure