Why #Ad Isn't Optional: The Creator's Guide to Legal Disclosure

There are two groups of people to never upset: your audience and your government.

The easiest way to anger your audience (and destroy your credibility) is to not disclose when a brand or company has provided you something of value in exchange for promotion.

And FYI, "something of value" also means free products or affiliate commission, not just flat compensation!

This is more than just a high-integrity business practice. It's the law.

In the United States, for example, there is a governing body called the Federal Trade Commission (FTC) that enforces civil antitrust law and promotes consumer protection.

The FTC legally mandates that you disclose your brand relationships to ensure your audience isn't duped by misleading or false advertising practices.

And while I know you'd never dream of misleading your audience (right?!), there will inevitably be some brands who overtly ask you to remove your sponsorship disclosures.

They may try to argue that the chances of getting caught are slim, but the FTC and other global regulatory bodies have started handing out fines to brands and creators who fail to comply.

I'm not making any of this up, by the way.

You might find this hard to believe, but here's an actual reply we got from a brand when we submitted draft content for review:

"Can you leave out the '#ad' since that will decrease the traffic?"

Sneaky, sneaky.

We immediately responded:

"To comply with FTC disclosure guidelines, we need to have either #ad or #sponsored in the caption. Let us know which you'd prefer."

The brand relented.

Whether they were ignorant of the law or purposefully disregarding it, it's your job to educate them and be firm in your stance.

"But Justin, do I really have to disclose every single time?!"

I understand there's sometimes nuance, so let's go through a few scenarios, shall we?

What if the brand gives you a free product in exchange for a review?

Yes. You must tell your audience the item was gifted.

What about if a brand pays you money for a post?

Yes. Most people get that one.

What about a free trip somewhere or a hotel stay?

Yes. That's something of value.

What about other VIP perks? Maybe you purchased tickets to an event and then connected with the PR manager, who upgraded your tickets to even better ones.

Depends. If the requirement for that upgrade was that you'd promote the event, you'll have to disclose that perk was gifted.

I constantly receive emails and direct messages from people describing esoteric partnerships, asking whether or not they need to disclose.

My rule of thumb is just to do it.

There is little downside. A few vocal audience members may get annoyed, but in the end, who cares? You're displaying your integrity and, on the off-chance your government ever starts sniffing around, you're covered.

So, how should you adequately disclose a partnership?

Every regulatory body is different, but, in general:

• Place the disclosure where it's impossible to miss

• Don't bury or mix the disclosure into a group of hashtags/links

• Use simple language like "Thanks to ACME for sponsoring this video" or "Thanks to ACME for sending the free wine fridge." (Yes, I got a free wine fridge. Yes, I'm bragging about it.)

• For text-based disclosures, you're usually fine using #gifted, #affiliate, #ad, or #sponsored. Don't use weird, confusing ones like #sp #spon #collab. Also, saying you're "working with" the brand isn't clear because your average audience member won't understand what that means.

When in doubt, just be transparent, honest, and direct about your relationship with a sponsor.