FTC compliance FAQ: How to keep your product sampling campaigns authentic and FTC compliant
With the rise of paid endorsements and product reviews, it’s essential to ensure that your expert advice during product sampling campaigns remains authentic and compliant with FTC regulations. This guide will help you easily understand and meet these requirements.
What is the FTC?
The Federal Trade Commission (FTC) is a U.S. government agency dedicated to preventing deceptive practices in advertising and ensuring fair market competition. Whether you post on social media or run a blog, understanding FTC guidelines is essential for transparency and trust.
Why is FTC disclosure important?
The FTC requires clear disclosure when an endorsement involves a material connection between you and a brand. This means if you receive compensation, discounts or free products in exchange for your opinion, you must disclose this relationship. Failure to do so can result in warnings, legal actions and even lawsuits. Even individuals with smaller followings need to comply. For example, celebrities have faced legal action for non-compliance, underscoring the importance of adhering to these guidelines.
How do disclosures enhance your credibility?
Disclosing material connections doesn’t undermine your message. On the contrary, it builds trust by showing that your opinions are based on real experiences rather than marketing hype. Research from Georgetown University confirms that transparent disclosures can actually increase the credibility of your endorsements.
When to add a disclosure:
You must disclose when there is a "material connection" between you and the brand. This includes:
- Monetary payment: You’re paid to promote the brand.
- Discounts: You receive a price reduction for trying the product.
- Free products: You’re given the product at no cost.
- Business or family relationships: You have a personal or business connection with the brand.
- Affiliate links: You earn commissions from sales generated through your links.
Disclosures are necessary regardless of your follower count or how often you post.
The only time a disclosure is not necessary is when the material connection is already clear from the context of the endorsement.
What Constitutes a Clear & Conspicuous Disclosure?
The FTC does not mandate specific wording but provides guidelines on what makes a disclosure clear and conspicuous:
- Visibility: Disclosures should be easy to spot and not hidden among hashtags or links.
- Placement: On platforms like Instagram, where only the first few lines are visible initially, disclosures should be placed above the “more” button.
- Clarity: Use straightforward terms like “#advertisement,” “#ad,” or “Sponsored Post” to ensure there’s no confusion.
Ensuring compliance:
- Stand out: Ensure your disclosure is noticeable and not buried in a sea of hashtags or links.
- No clicks required: Your disclosure should be visible without needing to click “more” or another link.
- Plain language: Use simple, direct terms that an average person can easily understand.
Follow brand guidelines
If working with a brand, adhere to their specific disclosure guidelines but prioritize FTC standards to ensure clarity and compliance.
By following these guidelines, you’ll maintain the integrity of your endorsements and protect yourself from potential legal issues. For more detailed information on FTC compliance, visit the FTC's official website.
For any questions or additional support, feel free to reach out to our Expert Support team.