Mastering Instagram FTC Guidelines: Disclosure Rules to Follow

No matter the size of your brand or influencer reach, all parties must adhere to Federal Trade Commission (FTC) endorsement disclosure regulations—no exceptions. The FTC has made its presence known throughout the years, sending more than 700 warning letters to brands and influencers in 2023. The letters reminded them of the requirement that influencers disclose material connections to the brands they post about on social media. In 2024, the FTC has again updated its guidelines for proper influencer marketing disclosure. What are the Instagram FTC guidelines for posts? This blog outlines the proper disclosure methods.

Instagram FTC disclosure

All sponsored posts on Instagram and other social media platforms should disclosure material connections, the relationships the influencers have with brands. These can include financial, business, or family connections, including relationships in which influencers receive free products from brands. These brand-influencer connections have to be very obvious and unavoidable.

For Instagram video content (Reels and Stories):

Influencers must audibly state the sponsorship in the video.
Written disclosures must appear on-screen during the video and in the caption.
Hashtags like #Sponsored, #Ad, or #XYZPartner are mandatory, even when using Instagram’s “Paid Partnership” label, which alone does not suffice.
Ensure the disclosure is prominently displayed on every Story frame—not hidden or minimized.

For Instagram in-feed photo posts:

Use clear hashtags, such as #Ad or #Sponsored, at the beginning of the caption or in a highly visible position.
Explicit statements like “Thanks to [Brand] for sponsoring this post!” or “This post is sponsored by [Brand]” make the partnership transparent.
Avoid vague terms like #Sp, #Collab, or #Partner, as they may not clearly indicate a paid endorsement.

Additionally, explicitly stating the partnership in the caption, such as “Thanks to [Brand] for sponsoring this post!” or “This post is sponsored by [Brand],” is an effective approach. Again, Instagram’s “Paid Partnership” tool is not enough. Influencers should avoid vague terms like “#sp,” “#collab,” or “#partner,” as they may not clearly indicate a paid promotion.

Some of the best tips to disclose sponsorships and partnerships on Instagram are as follows:

Form: Disclosure on a website must be equally clear and conspicuous when viewed on a smartphone or other medium, or it is inadequate. Text color, length of time it appears, and detracting text surrounding it are all factors in determining the sufficiency of disclosure.
Language: Disclosure must be in the same language as the ad/endorsement.
Placement: Disclosure on a profile page, rather than a post, is insufficient. It should be placed when it is clearly visible.
Information: Images should support the messaging, not misrepresent the capabilities of a product or service.

Instagram review disclosures

The FTC requires all sponsored reviews and testimonials to include clear and conspicuous disclosures. Influencers must inform their audience when they have been compensated or provided free products in exchange for a review. This disclosure should be easily noticeable in the post—typically at the beginning of captions or in a visible overlay for videos. Common phrases like “#Sponsored” or “#Ad” are acceptable, but they must not be hidden among a sea of hashtags or buried at the bottom of captions.

Brands are prohibited from fabricating positive reviews or testimonials to inflate their credibility. Additionally, they cannot suppress or remove negative reviews to mislead potential customers. The FTC emphasizes that all reviews should accurately reflect the honest opinions and experiences of consumers, whether shared by influencers or everyday users.

Disclosure requirements for giveaways on Instagram

When hosting a giveaway or sweepstakes on Instagram, brands and influencers must make it abundantly clear who is sponsoring the promotion. This involves stating that the giveaway is funded or organized by the brand. Hashtags such as “#Brand_Contest” or “#Brand_Sweepstakes” should be included in the caption, and influencers should also mention this verbally if the giveaway is announced in a video.

Where to find more information

Fortunately, brands and influencers don’t have to be in the dark about endorsement disclosure requirements. The FTC recently released an updated edition of “Endorsement Guides: What People Are Asking.” This publication features guidelines that go into great detail answering common questions about endorsements.

The guides answer questions like how to treat sponsored photo tags, how to use hashtags and how to handle Instagram disclosures. They also address issues like employee endorsements, affiliate or network marketing, social media contests, product placements and soliciting endorsements.

The FTC guidelines emphasize that advertisers must train, monitor and follow up with the social media influencers they work with. This helps ensure that everyone complies with the rules of disclosure.

Need expert help? Navigating FTC disclosure rules can be complex. Let’s chat about how we can simplify compliance in your influencer marketing campaigns.