Disclosure is not optional. It is the price of credibility in influencer marketing

Influencer marketing has always relied on trust.

Long before creators became a formal line item in media plans, the power of the channel came from the perceived authenticity of the people delivering the message. Audiences believed creators because they felt closer, more human, and more honest than traditional advertising.

That core truth has not changed.

What has changed is the size and significance of the market.

Creator-led advertising is now one of the fastest-growing segments of the global media industry. In the United States alone, spend is projected to reach USD $37 billion by 2025, growing far faster than the wider media market. More importantly, this growth reflects a structural shift. Brands are no longer paying creators simply to publish posts. They are investing in creators as a scalable media, production and distribution layer, increasingly reallocating budget from digital video, display and even television.

At that scale, trust stops being an abstract benefit and becomes a responsibility.

This is where disclosure moves from being a courtesy to being a requirement.

This guide is written primarily for brands and marketers who work with creators at scale, but it is equally relevant for agencies and creators who want to operate professionally and compliantly across markets.

Disclosure has always mattered. Scale has simply made that need clearer.

Disclosure was never optional. It has always been central to maintaining honesty between creators and their audiences. The difference today is that influencer marketing is no longer a fringe activity operating on informal norms.

As budgets increase and creator content becomes embedded into core marketing strategies, the expectation of maturity follows naturally. With maturity comes professionalism, accountability and regulation.

Disclosure sits at the centre of that shift.

Yet despite its importance, disclosure is still frequently missed.

In many cases, this is not driven by bad faith. It is driven by complexity.

Why disclosure is often misunderstood or overlooked

Modern influencer marketing does not resemble traditional advertising transactions.

Payment is no longer limited to a clear invoice tied to a single deliverable. It can include free products, gifted experiences, affiliate commissions, discounts, hotel stays, long-term ambassador agreements, or informal incentives that sit outside conventional media buying structures.

Commercial relationships also evolve over time. A creator may begin with gifting, move into paid collaborations, and eventually become a long-term partner. At each stage, the nature of the relationship changes, but the obligation to disclose does not always feel as obvious.

Layer on top of that regional differences in regulation, platform-specific tools, inconsistent industry education, and the sheer volume of content being produced, and it becomes clear why disclosure is sometimes missed.

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Disclosure is not a brand preference. It is a consumer protection law.

Across the UK, the European Union, the United States, Canada, Australia and much of Asia, disclosure is underpinned by the same fundamental principle.

Consumers must not be misled.

Regardless of how regulations are written locally, the intent is consistent. If content is commercial in nature, audiences must be able to recognise it as such. They should not be left to guess whether a recommendation is independent opinion or paid promotion.

This applies across formats and platforms. TikTok videos, Instagram Stories, YouTube vlogs, livestreams, blog posts and affiliate content are all covered.

It also applies regardless of how subtle the commercial relationship may feel. Payment does not have to be cash. Any material benefit that could influence how a creator presents a brand is enough to trigger disclosure requirements.

This is why regulators have deliberately kept definitions broad. Narrow rules are easy to work around. Broad principles protect consumers.

How disclosure is regulated across major markets

While influencer marketing operates globally, disclosure is regulated locally. The specifics vary by region, but the underlying principle is consistent everywhere. If content is commercial, audiences must be able to recognise it as such.

As creator marketing has matured and budgets have scaled, regulators across key markets have made it clear that influencer activity is not an exception to advertising rules. It is advertising, and it is regulated accordingly.

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United Kingdom

In the UK, influencer disclosure is governed jointly by the Advertising Standards Authority (ASA) and the Competition and Markets Authority (CMA). The ASA enforces the CAP Code, which requires marketing communications to be obviously identifiable as advertising, while the CMA enforces consumer protection law under the Consumer Protection from Unfair Trading Regulations. Together, they make it clear that if a creator has received any form of payment or benefit, or has an ongoing commercial relationship with a brand, that content must be clearly labelled as advertising.

This has been reinforced through multiple rulings, including a recent case involving influencer Lydia Elise Millen. Millen posted a TikTok video documenting her stay at The Savoy hotel without clearly disclosing its commercial nature. Although the hotel group Accor (UK) Ltd argued that the post fell outside the scope of a specific paid brief, the ASA ruled that the content promoted the hotel and was linked to an existing commercial relationship. As a result, the post was deemed to be advertising and in breach of the CAP Code due to the absence of clear disclosure.

The ruling underscored a key principle. A creator operating in a professional capacity cannot switch between “commercial” and “organic” based solely on whether a specific post was paid for. If a relationship exists and the content promotes the brand, disclosure is required. Responsibility sits with both the creator and the brand.

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European Union

Across the European Union, influencer disclosure is enforced through national consumer protection authorities under the Unfair Commercial Practices Directive, overseen at an EU level by the European Commission. While each member state applies the rules through its own regulator, the principle remains the same. Consumers must not be misled about the commercial nature of content.

If a creator receives any form of compensation or benefit and promotes a product or service, that relationship must be clearly disclosed in a way the average consumer can understand. Disclosure must be visible without interaction and expressed in plain language. Ambiguous or implied labels are often considered insufficient. Both creators and brands can be held accountable, with penalties varying by country.

United States

In the United States, influencer disclosure is regulated by the Federal Trade Commission (FTC), the country’s chief consumer protection agency. The FTC’s rules are grounded in its Endorsements and Testimonials Guides, which explain how “material connections” between influencers and brands must be disclosed to avoid misleading consumers. Material connections include payments, free or discounted products, affiliate commissions, long-term partnerships, or any incentive that could influence the content. Disclosure must be clear, conspicuous and unavoidable, and must appear in the same format as the content (for example, spoken in video and visible in text when appropriate).

The FTC has moved beyond guidance and into enforcement in recent years. In November 2023, the FTC staff sent warning letters to two trade associations and 12 influencers, including registered dieticians and online content creators, for failing to adequately disclose paid relationships in Instagram and TikTok posts promoting aspartame and sugar-related safety messages. The letters emphasised that influencers must make clear any sponsorship or payment received, and that vague or buried disclosures do not satisfy the law.

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These warning letters are important because they signal that the FTC is actively monitoring influencer content and will escalate beyond general guidance when disclosures are missing or inadequate. The agency has stressed that if content includes both visual and spoken elements, disclosures must appear in both, and that relying on platform tags alone may not be sufficient. 

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Beyond warning letters, FTC guidance and enforcement history around endorsements continues to shape expectations. The Endorsement Guides were revised in 2023 to clarify what counts as a material connection and how clear disclosures must be, reinforcing that anyone promoting products or services online must comply with truth-in-advertising laws.

Regulators hold both creators and brands responsible for ensuring compliance. Failure to correctly disclose can lead to enforcement actions, monetary penalties, and corrective measures — underscoring that transparent disclosure is a legal requirement, not just best practice.

Canada

In Canada, influencer disclosure falls under the Competition Act and is enforced by the Competition Bureau of Canada. The Canadian approach closely mirrors that of the US and EU. If content is sponsored, incentivised or commercially influenced, that relationship must be disclosed clearly and prominently so consumers are not misled.

Disclosures must be easy to understand and must not be hidden, implied or obscured. The Competition Bureau has made it clear that brands cannot rely solely on creators to manage compliance independently. Responsibility is shared, and failure to disclose properly can result in investigations, penalties and reputational damage.

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Australia

In Australia, influencer disclosure is governed by the Australian Consumer Law and enforced by the Australian Competition and Consumer Commission (ACCC). With the local creator economy now estimated to exceed $1.2 billion, the ACCC is treating influencer marketing with the same seriousness as any other advertising channel. This is no longer a niche tactic or side-hustle industry. It is a core marketing channel relied upon by brands to drive real commercial outcomes.

In early 2023, the ACCC launched a formal investigation into influencer behaviour online, conducting a sweep of 118 influencers. While this represented only a fraction of the more than 1.1 million creators in Australia with over 1,000 followers, the focus was deliberate. The investigation centred on poor disclosure rather than hidden contracts. Gifted products left unmentioned. Partnerships framed as personal recommendations. Content that appeared authentic but was not clearly labelled.

Under Australian Consumer Law, undisclosed or misleading endorsements are considered deceptive conduct, regardless of whether the incentive was cash, product, travel or hospitality. Penalties reflect the seriousness of the offence. Individuals face fines of up to $2.5 million. Brands face penalties of up to $50 million, or 30 percent of annual turnover where the benefit cannot be precisely calculated.

Asia

Asia does not operate under a single regulatory framework, but the direction across major markets is consistent. Countries such as Singapore, Japan, South Korea and China regulate influencer disclosure through consumer protection, advertising standards or fair trading authorities, with increasing scrutiny as the creator economy grows.

While enforcement approaches differ by market, the principle is the same. Audiences must be able to identify when content is commercial. Paid or incentivised endorsements cannot be presented as independent opinion. As influencer marketing continues to scale across the region, regulators and platforms alike are tightening expectations, making disclosure an increasingly standard requirement rather than an optional best practice.

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At this point, it is worth being explicit. Disclosure responsibility does not sit with creators alone. Regulators across all major markets increasingly expect brands to lead. Brands cannot outsource compliance, assume platform tools are sufficient, or rely on creators to interpret complex rules independently. If influencer marketing is being used as a core media channel, disclosure governance is a brand responsibility.

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How to take control of disclosure with creators

Creators do not need to be micromanaged, but they do need certainty. Ambiguity creates risk. When disclosure guidance is vague or implied, creators will fill the gaps themselves, often inconsistently.

Brands should be explicit about when disclosure is required, what constitutes a commercial relationship, and how disclosure should appear across formats. This does not strip away authenticity. It removes guesswork.

That clarity needs to be formalised, not assumed.

Disclosure requirements should be clearly called out in creator briefs and explicitly included in contracts as part of the agreed deliverables. This is not an optional guideline or a platform preference. It is a core requirement of the work being commissioned. Just as brands specify content formats, posting timelines and usage rights, they should specify disclosure expectations with equal precision.

When disclosure is positioned as a defined deliverable, it removes ambiguity for creators and protects both parties. Creators know exactly what is expected of them. Brands create a clear record that compliance was required and agreed. In regulated markets, that clarity matters.

Making disclosure part of the brief and the contract is not about control. It is about setting a shared standard that allows creator partnerships to operate transparently, professionally and at scale.

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How to clearly and correctly disclose influencer content

Once brands accept that disclosure is a requirement, the next challenge is execution. In practice, most compliance issues are not caused by refusal to disclose, but by how disclosure is applied.

Across major markets, regulators consistently prioritise clarity over creativity. The specific wording matters less than whether an average audience member can immediately understand that content is advertising.

While local guidance varies slightly, the following disclosures are broadly accepted across the UK, EU, United States, Canada and Australia when used correctly and prominently.

Clear and widely accepted disclosures

These disclosures are generally recognised by regulators as clearly communicating commercial intent, provided they are placed upfront and are immediately visible without interaction.

Ad
The simplest and most widely accepted disclosure. “Ad” is short, unambiguous and immediately understood by audiences. It is accepted across all major markets and formats when placed clearly at the beginning of captions or spoken early in video content.

#Ad / #AD
Hashtag versions of “Ad” are also widely accepted, provided they are not buried among other hashtags and appear at the start of the caption or description.

Advertisement / Advert
Longer forms such as “Advertisement” or “Advert” are equally acceptable and are often recommended by regulators in the UK and EU, particularly for longer-form content.

Sponsored / #Sponsored
“Sponsor” language is generally acceptable in many markets, including the US, Canada and Australia, as long as it clearly communicates that the content is paid for. It should be used carefully and prominently to avoid ambiguity.

Paid partnership with [Brand]
This phrasing is commonly accepted, especially when paired with platform tools. However, regulators have made it clear that this should not be hidden or relied on alone if it is not immediately visible to audiences.

Paid partnership / Paid partnership with brand
Acceptable when used clearly and early, and ideally reinforced with a platform disclosure tool.

Gifting and product-only relationships

This is where confusion most often arises.

If a creator has received free products, services, travel or experiences, disclosure is still required in most markets. The following disclosures are commonly used, but must be applied carefully.

Gifted / #Gifted
“Gifted” is sometimes accepted when it is clear that the product was received for free. However, regulators in several markets have indicated that “gifted” alone may not always be sufficient, as audiences may not understand that this constitutes advertising. Where possible, it is safer to pair “gifted” with a clearer disclosure such as “Ad” or “Paid partnership”.

Gifted by [Brand]
More explicit than “gifted” alone, but still potentially risky if used without additional context. Best practice is to combine this with an “Ad” label if the content promotes the product.

As a general rule, if the gifted product appears in promotional content, treating it as advertising is the safest approach.

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Platform disclosure tools

Most major platforms now offer paid partnership or branded content tools. These are useful, but they should be treated as supporting mechanisms, not standalone solutions.

Regulators in the UK, US and Australia have all indicated that platform tools alone may not be sufficient if the commercial nature of the content is not immediately obvious. Best practice is to use platform tools in combination with clear, textual or spoken disclosures.

Disclosures that are risky or commonly rejected

Certain disclosures continue to cause problems because they are vague, euphemistic or not widely understood by audiences.

Examples that regulators have flagged as problematic include:

• “Thanks to [Brand]”
• “In collaboration with”
• “Partner”
• “Aff” or “Affiliate” without explanation
• Disclosures buried at the end of captions or behind “see more”
• Hashtags mixed into long lists where they are easy to miss
  
  

Placement matters as much as wording. Disclosures must be upfront, visible and clear on mobile.

If there is one rule to remember, it is this. If an audience has to interpret what a disclosure means, it is unlikely to be compliant.

Why disclosure is infrastructure, not friction

The brands that get disclosure right do not see it as a compliance hurdle. They see it as infrastructure. Clear disclosure protects trust, protects creators, and protects the long-term credibility of influencer marketing as a channel.

When influencer marketing operates at the scale it does today, transparency is not a nice-to-have. It is the foundation that allows the channel to grow without undermining itself.

If influencer marketing is going to sit alongside the largest media channels in the world, it needs to play by the same rules. Transparency is the price of credibility.

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