FTC Disclosure Requirements for TikTok Creators

The Federal Trade Commission requires every TikTok creator who receives compensation for promoting a product or service to clearly and conspicuously disclose that relationship, with FTC enforcement actions resulting in penalties ranging from $50,000 to over $600,000 per violation since 2023. TikTok ftc disclosure rules apply to all forms of compensation including free products, affiliate commissions, and cash payments. Failing to comply does not just risk legal trouble — it can permanently damage your credibility with an audience that values authenticity.

What the FTC Requires for TikTok Sponsored Content

The FTC's Endorsement Guides, updated in June 2023, lay out the core principle behind every sponsored content disclosure rule: if there is a material connection between a creator and a brand, the audience must know about it. A "material connection" means anything that could affect the weight or credibility a viewer gives to your endorsement. This includes cash payments, free products, affiliate relationships, employment, family connections, or even receiving a significant discount.

For TikTok creators specifically, the FTC has made clear that disclosures must be adapted to the format. Because TikTok videos are short, fast-paced, and often watched without sound, the bar for "clear and conspicuous" is higher than on a blog post or long-form YouTube video. The disclosure must be hard to miss within the video itself — not buried in a caption that requires tapping "more" to read.

The 2023 update also expanded liability. Brands, agencies, and intermediaries can now be held directly responsible alongside creators if sponsored content lacks proper disclosure. This means the brands you work with have additional incentive to enforce compliance, and you may see stricter requirements written into your brand deal contracts.

The FTC does not prescribe exact wording, but it does require that disclosures use language the average viewer will understand. Terms like "ambassador" or "collab" are considered too vague. The agency has specifically called out that disclosures should be unambiguous and use plain language such as "ad" or "sponsored."

How TikTok Ad Disclosure Works in Practice

Understanding the rules in theory is one thing. Applying them on a platform where videos average 15 to 60 seconds requires specific tactics. There are three primary methods TikTok creators use to disclose sponsored content: hashtags, verbal disclosures, and on-screen text placement. The strongest approach combines all three.

Hashtags: #Ad vs. #Sponsored vs. #Partner

Hashtag disclosures are the most common method on TikTok, but not all hashtags satisfy FTC requirements equally.

#Ad is the FTC's preferred hashtag. It is short, universally understood, and unambiguous. The FTC has explicitly stated that #ad is the clearest single-hashtag disclosure available.

#Sponsored is also acceptable but slightly less direct. The FTC has not objected to it, and it remains widely used across platforms.

#Partner is risky. The FTC considers it ambiguous because "partner" can mean many things — business partner, creative collaborator, or dance partner. Unless paired with clarifying language, avoid using #partner as your sole disclosure.

Hashtags to avoid entirely: #Ambassador, #Collab, #BrandName (without additional context), #Gifted (insufficient as a standalone). The FTC has specifically flagged these as too vague for consumers to understand the commercial nature of the content.

Placement of hashtags matters as well. On TikTok, captions are truncated after roughly the first 70-80 characters. If your #ad hashtag appears after the truncation point, the FTC may consider it insufficiently conspicuous. Always place your disclosure hashtag at the beginning of your caption, not the end.

Verbal Disclosure Best Practices

Because a significant percentage of TikTok users watch with sound on, verbal disclosure is one of the most effective methods for compliance. The FTC has indicated that a verbal disclosure early in the video is a strong way to meet the "clear and conspicuous" standard.

Best practices for verbal disclosure on TikTok:

• Say it in the first 3 seconds. Do not wait until the middle or end of the video. Viewers may scroll past before reaching your disclosure.
• Use plain language. Phrases like "This video is sponsored by [Brand]" or "I'm partnering with [Brand] on this paid ad" are clear and effective.
• Do not mumble or rush. The disclosure should be delivered at the same pace and volume as the rest of your content.
• Repeat if the video is long. For videos over 60 seconds, consider restating the disclosure midway through.

A verbal disclosure alone can satisfy FTC requirements, but pairing it with a caption hashtag and on-screen text creates a layered approach that protects you if any single element is missed by the viewer.

On-Screen Text Placement

On-screen text disclosure is particularly valuable on TikTok because many users watch without sound. The FTC has noted that text overlays can satisfy disclosure requirements if they are large enough to read, displayed long enough to process, and positioned where viewers naturally look.

Guidelines for effective on-screen text disclosures:

• Duration: Display the text for at least 3 seconds, or the full length of the video if it is under 15 seconds.
• Size: Use a font size that is readable on a mobile screen. Tiny text in the corner does not meet the standard.
• Contrast: White text on light backgrounds or dark text on dark backgrounds is insufficient. Use high-contrast combinations.
• Position: Place text in the upper or center portion of the screen. Avoid the bottom where TikTok's own UI elements (captions, buttons) may overlap.

TikTok also offers a built-in branded content toggle through its Branded Content Policy. While using this toggle is a good practice, the FTC has clarified that platform-specific tools alone may not satisfy federal disclosure requirements. You should use TikTok's branded content toggle in addition to your own disclosures, not as a replacement.

Penalties for Non-Compliance

The FTC has escalated its enforcement of influencer disclosure rules significantly. Here is how the penalty landscape has evolved:

Starting in 2023, the FTC gained the ability to seek civil penalties for first-time violations of the Endorsement Guides, rather than only issuing warning letters. The per-violation penalty amount is adjusted annually for inflation and exceeded $51,000 per violation in 2024. For a creator who posts multiple non-compliant videos, penalties can compound rapidly into six figures.

Beyond monetary penalties, the FTC can impose consent orders that require you to submit all future sponsored content for review before posting — a restriction that can last 20 years and severely limit your ability to work with brands.

TikTok itself also enforces its Branded Content Policy separately from the FTC. Violations of TikTok's rules can result in video removal, reduced distribution, or account restrictions. Understanding TikTok's community guidelines and strike system is essential for keeping your account in good standing alongside federal compliance.

International Disclosure Rules

If your TikTok audience includes viewers outside the United States, you may be subject to additional disclosure requirements from international regulators.

United Kingdom (ASA): The UK Advertising Standards Authority requires the label "AD" to appear prominently and immediately. The ASA has been more aggressive than the FTC in enforcement against individual influencers, issuing public rulings against creators with as few as 10,000 followers. The ASA considers free products, affiliate links, and even temporary access to services as triggers for disclosure.

European Union: The EU's Unfair Commercial Practices Directive requires that commercial intent be made clear. Individual member states enforce this with varying degrees of strictness. Germany's Landesmedienanstalten has been particularly active, fining creators for insufficient labeling of sponsored content.

Canada: The Competition Bureau and Ad Standards Canada require clear disclosure using terms like "ad" or "sponsored." Canadian rules closely mirror FTC guidance but apply specifically to content reaching Canadian consumers.

Australia: The Australian Association of National Advertisers (AANA) Code of Ethics requires that advertising be clearly distinguishable from editorial content. The ACCC has investigated influencer disclosure practices and issued formal guidance.

For TikTok creators with a global audience, the safest approach is to follow the strictest applicable standard. In most cases, that means using #ad prominently in your caption, providing a verbal disclosure in the first few seconds, and using on-screen text — the same layered approach that satisfies FTC requirements.

Common Disclosure Mistakes to Avoid

Even well-intentioned creators frequently make errors that put them at risk. Here are the most common mistakes and how to fix them.

Burying the disclosure. Placing #ad at the end of a long caption or after 15 other hashtags makes it easy to miss. The fix: put #ad as the first word or hashtag in your caption.

Using ambiguous language. Terms like "thanks to [Brand]," "made possible by," or "in collaboration with" do not clearly communicate a paid relationship. The fix: use "ad," "sponsored," or "paid partnership" explicitly.

Disclosing only in Stories. If you post a sponsored TikTok video, the disclosure must appear on that video. A separate Story mentioning the sponsorship does not satisfy the requirement.

Assuming small audiences are exempt. The FTC rules apply regardless of follower count. Creators with 500 followers have the same disclosure obligations as those with 5 million. If you are earning income from brand partnerships, the tax implications also apply regardless of scale.

Forgetting about affiliate links. If you include an affiliate link in your bio or caption and create content that drives traffic to it, that content requires disclosure even if no brand directly paid you.

Relying solely on TikTok's branded content toggle. While the toggle adds a "Paid partnership" label, it may not meet FTC requirements for conspicuousness in all contexts. Always add your own disclosure elements.

How to Build a Compliant Disclosure Workflow

The most effective way to stay compliant is to build disclosure into your content creation process so it becomes automatic rather than an afterthought.

Step 1: Review the agreement. Before creating any sponsored content, read your brand deal contract to identify specific disclosure requirements the brand has included. Some brands require exact language or placement.

Step 2: Script the disclosure. Write your verbal disclosure into your video script or outline before filming. Treat it as part of the content, not an interruption.

Step 3: Add visual elements during editing. Include on-screen text disclosure in your editing workflow. Save a text template so you can apply it consistently across sponsored videos.

Step 4: Write the caption disclosure first. When drafting your TikTok caption, start with #ad or "Sponsored by [Brand]" before writing the rest of your caption text.

Step 5: Activate TikTok's branded content toggle. Before publishing, enable the branded content label in TikTok's posting settings as an additional layer.

Step 6: Screenshot and archive. Save a copy of the published video and caption for your records. If the FTC or a brand ever questions your compliance, documentation is your best defense.

Creators who treat disclosure as part of their professional workflow — rather than a nuisance to minimize — build stronger trust with their audiences. Research consistently shows that transparent disclosure does not reduce engagement or conversion rates. Audiences respect honesty, and that respect translates into long-term value for both you and the brands you represent.

If you are structuring your creator business to handle multiple brand deals, consider forming an LLC to separate your personal and business liability, which provides additional protection in the event of a compliance dispute. For more strategies on building a sustainable creator career, explore the full TikTok business hub and our guide to monetization strategies.