FTC disclosure for gifted products: what brands need to know

Yes. If a brand gives a creator something for free and the creator posts about it, FTC guidance says the post should mention the gift, whether or not any money changed hands and whether or not anyone asked for a post. In its guide for influencers, the FTC lists free or discounted products among the connections people need to disclose, and it offers simple wording like "Thanks to [Brand name] for the free product." Viewers should be unable to miss it, so it belongs in the post or the video. A bio, a pile of hashtags or the text behind a "more" link isn't enough on its own.

We've written this for brands selling in the US, from the FTC's published guidance. It's general information, so please take questions about your own situation to your lawyer.

The rules in plain terms

It all starts with the law in 15 U.S.C. § 45, better known as Section 5 of the FTC Act, which makes unfair or deceptive practices in commerce illegal. On top of that sit the Endorsement Guides (16 CFR Part 255), which show how the FTC applies the law to endorsements. Because the Guides are only the agency's reading of the law, stepping outside them isn't a violation by itself, though the FTC can still bring a Section 5 case over conduct that runs against them, as 16 CFR § 255.0 explains.

Everything turns on what the FTC calls a material connection. If a creator has a tie to the brand that viewers wouldn't assume, and knowing about it might affect the weight they give the recommendation, that tie must be disclosed in a clear and conspicuous way (16 CFR § 255.5).

An updated version of the Guides was announced on June 29, 2023 and appeared in the Federal Register on July 26, 2023. Among the changes, it gave "clear and conspicuous" a definition, warned that the disclosure tools built into platforms might fall short, extended the Guides to virtual influencers, fake reviews and tags on social media, spelled out who can be held liable, naming the brand behind an ad alongside endorsers and intermediaries, and named advertising aimed at children as an area of special concern (FTC).

Free products count

In Disclosures 101 for Social Media Influencers, published in November 2019, the FTC asks creators to mention any family, personal, employment or financial tie they have with a brand, and it counts free or discounted products as one of those ties. Being unpaid, or under no obligation to post, doesn't change that.

What the disclosure should say

Short, plain words are what the FTC prefers, for example:

• "Ad"
• "Advertisement"
• "Sponsored"
• "Thanks to [Brand name] for the free product"

Abbreviations and fuzzy labels (think "sp", "spon" or "collab") are on its list of terms to avoid, since plenty of viewers won't know what they mean. When the connection is a gift, the "thanks for the free product" line is the best of the lot, because it names the connection outright.

Where the disclosure goes

The Guides boil "clear and conspicuous" down to two tests: ordinary people shouldn't be able to miss it, and they should understand it easily. It also has to travel the same way as the claim, on screen for a claim people read, out loud for one they hear, and both when the claim is made both ways, as 16 CFR § 255.0(f) sets out. For a creator, that means:

• Inside the content. On a video, put it in the video. A line in the description can back it up but can't stand in for it.
• Said out loud when the claim is. The FTC's FAQ page adds that a claim made in speech needs a disclosure you can hear as well, and putting it early in a video works better than leaving it until the end (FTC).
• Easy to find. A profile page, a long run of hashtags or the hidden part of a caption is the wrong place for it.
• Said again during live streams, because viewers arrive at different times.

Platform tools help, and they aren't enough

Every major platform offers a built-in disclosure. When a YouTube video carries a sponsorship or an endorsement, the creator is asked to tick the paid promotion box, and a label then appears in the opening moments (YouTube Help). Over on TikTok, the commercial content disclosure setting adds a "Paid partnership" tag to the post. According to TikTok, using the setting has no effect on how its recommendations treat a post, based on an internal 2023 study covering nearly 2 million videos (TikTok Ads Help, April 2026).

Turn them on, then add your own words. YouTube is clear that creators and brands still carry the legal responsibility, and the FTC's FAQ warns that a platform's tool can't be counted on to make a disclosure work by itself. So the label goes on, and the words go into the content as well.

What brands are responsible for

Since the 2023 update, it's plain that the advertiser can be held liable too, along with creators and intermediaries. If you seed product, three habits follow from that:

1. Put disclosure instructions in the note that travels with every box.
2. Look at the posts that come in, and ask for a correction wherever the disclosure is unclear or absent.
3. Stop sending product to anyone who keeps leaving it out.

Gifting and reviews: the 2024 rule

Gifted product often ends up in reviews, on a retailer's site or in a creator's video. The FTC's announcement of its rule against fake reviews and testimonials came on August 14, 2024, after a 5-0 vote. The rule sits at 16 CFR Part 465. It appeared in the Federal Register on August 22, 2024 (89 FR 68077) and came into force 60 days after that. Its scope includes:

• reviews and testimonials that are fake or false,
• paying for reviews that are positive or negative,
• reviews from insiders who don't say who they are,
• company-run review sites that pose as independent,
• suppressing reviews, and
• trading in fake social media influence, like bought followers or views.

Breaking the rule knowingly can bring civil penalties. For seeding, that comes down to two habits: a gift never depends on a good review, and you check that nobody on the list has bought their audience.

If your content is seen in the UK

The UK works differently. In their guide for influencers (third edition, March 2023), the ASA and CMA ask for a label such as "#Ad" right at the front of anything that counts as advertising, and they advise against leaning on "Gifted", "Sponsored", "Spon", "Collab" or similar words alone. When your creators have UK followers, an upfront "Ad" covers the FTC's suggested wording and the ASA's guidance in one go.

A checklist for every seeding send

• A note in the box that explains how to disclose, with example wording.
• No condition attached to posting, or to what a post says.
• One follow-up at most, to check the product arrived.
• A log of who received product, who posted and whether each post disclosed.
• A friendly request for a fix on any post with a missing or unclear disclosure.

Where these facts come from

1. 15 U.S.C. § 45, Unfair methods of competition unlawful, from Legal Information Institute, Cornell Law School (checked October 2026).
2. 16 CFR § 255.0, Purpose and definitions, from Legal Information Institute, Cornell Law School (checked October 2026).
3. 16 CFR § 255.5, Disclosure of material connections, from Legal Information Institute, Cornell Law School (checked October 2026).
4. Federal Trade Commission Announces Updated Advertising Guides to Combat Deceptive Reviews and Endorsements, from Federal Trade Commission (June 29, 2023).
5. 16 CFR Part 255: Guides Concerning Use of Endorsements and Testimonials in Advertising, from Federal Trade Commission (published in the Federal Register July 26, 2023).
6. Disclosures 101 for Social Media Influencers, from Federal Trade Commission (November 2019).
7. FTC's Endorsement Guides: What People Are Asking, from Federal Trade Commission (checked October 2026).
8. Add paid product placements, sponsorships & endorsements, from YouTube Help (checked October 2026).
9. About the Commercial Content Disclosure setting for creators, from TikTok Ads Help (updated April 2026).
10. Federal Trade Commission Announces Final Rule Banning Fake Reviews and Testimonials, from Federal Trade Commission (August 14, 2024).
11. 16 CFR Part 465, Rule on the Use of Consumer Reviews and Testimonials, from Legal Information Institute, Cornell Law School (published August 22, 2024).
12. Influencers' guide to making clear that ads are ads, from ASA and CMA (March 23, 2023).