FTC Endorsement Guides
Also known as: 16 CFR Part 255, FTC Guides Concerning the Use of Endorsements
Updated Jun 1, 2026
16 CFR Part 255 is the federal regulation that governs what creators, brands, and ad agencies have to do when an endorsement is involved. The Guides are not statutes — they are the FTC's interpretation of Section 5 of the FTC Act (the general ban on unfair or deceptive practices) as applied to endorsements. Violating them is a Section 5 violation, which is where the real penalty exposure comes from.
The Guides were updated in June 2023, the first substantive revision since 2009. The 2023 update did three things creators feel directly: it expanded the definition of endorsement to cover silent tags and likes-for-promotion, it explicitly stated that platform-built "Paid Partnership" labels are not by themselves sufficient disclosure, and it pulled fake reviews and incentivized reviews squarely into scope.
Penalty exposure
The FTC enforces violations under Section 5(m)(1)(A) of the FTC Act when a party has received the Commission's Notice of Penalty Offenses Concerning Endorsements. The civil penalty cap, adjusted annually for inflation, was $51,744 per violation in 2024 and $53,088 per violation in 2025. "Per violation" can mean per post, per video, per platform — the FTC has discretion. The Commission sent the Notice of Penalty Offenses to more than 700 advertisers in October 2021, putting them on notice that the penalty regime now applies.
What changed in 2023
- Platform tools are insufficient. Instagram's Paid Partnership tag can support a disclosure but cannot replace one.
- Silent endorsements count. Tagging a brand in a photo, with no caption text, is still an endorsement.
- Hidden incentives are deceptive. Buried hashtags, off-screen text, or disclosures that need a "more" tap fail the clear-and-conspicuous test.
- Brands are on the hook too. The Guides assign liability to the advertiser, the creator, and any intermediary agency. Brands cannot shift the entire obligation onto the creator by contract.
Who has been hit
Warner Bros, Shadow of Mordor (2016): undisclosed paid YouTube reviews. CSGO Lotto (2017): owners promoted their own gambling site without disclosure. Teami (2020): false health claims plus undisclosed influencer payments — $15.2 million judgment, suspended to $1 million. Each settlement reinforces that the penalty math compounds quickly across many posts.
The full Guides text lives at the FTC's endorsement guide page.
Example
Teami LLC, 2020. The wellness brand worked with celebrity influencers, including Cardi B and Brittany Renner, to promote its detox teas with health claims the FTC found unsubstantiated. Several creators' posts also lacked clear disclosure of the paid relationship — disclosures were buried below the "more" fold in the caption. The FTC's order required Teami to pay a $15.2 million judgment (suspended to $1 million on hardship grounds) and named ten influencers in warning letters. It remains the largest FTC influencer enforcement on record and the case most often cited to explain why disclosure has to be visible without tapping "more."
Related terms
Compliance
FTC Material Connection
Under FTC rules (16 CFR Part 255), any relationship between a creator and a brand that could affect endorsement credibility — cash, free product, family ties, employment. Triggers a disclosure obligation.
Compliance
Paid Partnership Tag
Instagram's built-in label that appears above a post when tagged as branded content. Not sufficient FTC disclosure on its own — must be paired with in-caption or on-screen text.
Compliance
Clear and Conspicuous Disclosure
The FTC standard for influencer disclosure: visible, in proximity to the endorsement, unambiguous, and understandable. Buried hashtags and off-screen overlays fail this test.
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