In creator marketing, disclosure has long been treated as optional by some influencers. Now, that loose approach may be catching up with them.
A wave of lawsuits and watchdog scrutiny is digging into undisclosed or poorly labelled posts — and agencies are taking note.
FTC guidelines for sponsored posts have been in place for years, aiming to ensure transparency and protect consumers from misleading advertising. The guidelines were updated in 2023 partly to reflect the rise of creators as key players in digital advertising. They explicitly call out platforms like TikTok and Instagram, where creators have a more informal and direct connection with followers. Failure to disclose paid relationships on these platforms can result in fines of over $50,000 for each individual violation, with the liability largely falling on the advertisers.
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