What is Disclosure?
Also known as: Affiliate disclosure, FTC disclosure, Material disclosure
What is a disclosure?
A disclosure is a notice that tells readers, viewers, or followers you have a paid or material connection to the product, service, or brand you are recommending.
The connection can be cash, free product, a discount code, a commission on every sale, or a long-term affiliate relationship. The same rules apply to a sponsored post or a wider sponsored content program. If money or value flows to the endorser, the audience needs to know.
The US FTC Endorsement Guides call this a "material connection." UK readers fall under the ASA CAP Code rules on identifying ads. Both regulators require the same outcome. The audience should never be tricked into thinking an endorsement is independent.
Disclosures matter because trust is the currency of recommendation. When the audience finds out late, they don't just punish the creator. They punish the brand.
When are disclosures required?
A disclosure is required any time a material connection exists between an endorser and a brand. The trigger is value, not size. A $10 free sample needs the same disclosure as a $100,000 sponsorship deal.
The FTC lists these material-connection triggers in its .com Disclosures guide:
- Cash payment for a post, video, or review.
- Free product, service, or experience (gifted travel, hotel stays, event access).
- Affiliate commission on clicks, sales, or sign-ups.
- Discount or coupon code that pays the creator.
- Employment or equity stake in the brand.
- Family, romantic, or close personal relationship with someone at the brand.
The trigger applies even when the post is not flagged as advertising, the creator is not a full-time influencer, or the platform does not provide a built-in tag. It also applies to negative reviews if the reviewer was paid to publish one.
One useful test. If knowing the connection would change how a reasonable person reads the recommendation, the connection is material. Disclose it.
How do you write a clear disclosure?
A clear disclosure is short, plain, and impossible to miss. It uses the words "ad," "advertisement," "sponsored," or "paid partnership." It sits next to the recommendation, not at the bottom of the page.
The FTC publishes a four-part test. The disclosure must be clear, conspicuous, in close proximity, and understandable. Vague tags, foreign-language hashtags, and buried legal text all fail at least one of the four.
Placement
- Blog posts. Plain-text line above the first affiliate link or product mention. Same font size as the body.
- Video. Verbal callout in the first 30 seconds plus an on-screen caption that stays visible during the recommendation.
- Images. Overlay text on the image itself, or a caption that opens with the disclosure before any product description.
- Live streams. Repeated verbal disclosures every time a sponsored product comes up, since new viewers join mid-stream.
Language
Use words your audience already knows. Approved options:
- "Ad"
- "Advertisement"
- "Sponsored"
- "Paid partnership with [Brand]"
- "I get a commission if you buy through this link."
Avoid jargon, abbreviations, and stacked hashtags. "#sp" and "#collab" do not pass the FTC's plain-language test. "Thanks to [Brand] for the free sample" is not a disclosure either. It describes a feeling, not a relationship. Disclosure also intersects with brand safety when ad placements run on user-generated content, since opaque relationships create reputational risk for advertisers.
Examples
| Context | Strong disclosure |
|---|---|
| Affiliate blog post | "I earn a commission on purchases made through the links below." |
| YouTube review | "This video is sponsored by [Brand]." Spoken and on-screen at second 0:08. |
| Instagram Reel | "Paid partnership with [Brand]" tag plus #ad in the first line of the caption. |
| TikTok | Built-in Branded Content toggle on plus "#ad" inside the video text overlay. |
How do disclosures differ across platforms?
Disclosure rules are the same in spirit across platforms, but each network has its own tag, label, or built-in tool. Pick the platform-native option first. Add a written disclosure on top of it.
| Platform | Built-in tool | Recommended written tag | Where it must appear |
|---|---|---|---|
| Blog or website | None | "Disclosure: This post contains affiliate links. I earn a commission on qualifying purchases." | Above the first affiliate link. Plain text. Body font size. |
| YouTube | "Includes paid promotion" toggle | "This video is sponsored by [Brand]." | Spoken in first 30 seconds. On-screen caption during the segment. |
| "Paid partnership" label via Branded Content tool | #ad at the start of the caption | Tag visible above the post. Hashtag on line one, not buried after a "more" cutoff. | |
| TikTok | Branded Content toggle | #ad in the in-video text overlay | Visible without tapping "more." Spoken if the recommendation is verbal. |
| None | "This email contains affiliate links." | Above the first link. Same size as the body copy. | |
| Podcast | Host-read script | Verbal disclosure | Before the recommendation, every episode. Not only in show notes. |
The platform tool is not a substitute. The FTC has noted that a small "Paid partnership" label can be missed on small screens. A written #ad in the caption is the safety net.
What does a real enforcement action look like?
Enforcement is not theoretical. The FTC has pursued brands, agencies, and individual creators for hidden disclosures, fake reviews, and fine-print tags.
In 2017, the FTC settled with two YouTubers, Trevor "TmarTn" Martin and Thomas "Syndicate" Cassell, over CSGO Lotto. They promoted a gambling site to millions of subscribers without telling viewers they owned the company. The case became one of the FTC's first public influencer enforcement actions and produced a public order outlining what disclosures should look like going forward.
In 2020, the FTC sent more than 700 warning letters to brands and influencers about deceptive endorsements and missing material-connection disclosures.
The lesson is simple. The FTC reads captions, watches videos, and follows affiliate links. A vague tag, a buried footer, or a hashtag stack is enough to trigger a letter. The fix is cheaper than the lawsuit. Write the disclosure. Put it where the reader will see it. Use the same words every time.
How do you manage disclosure compliance at scale?
Disclosure breaks at scale. One blog post is easy. A network of 500 creators across blogs, YouTube, Instagram, and TikTok is not. Compliance teams need a system, not a checklist.
Three practices that hold up:
- Standardized disclosure language. Lock the wording in the affiliate program agreement. Provide pre-approved snippets for each platform. Reject submissions that use unapproved tags.
- Pre-publish review. Spot-check creator content before campaigns go live. Tools like CreatorIQ, Aspire, and Grin flag missing #ad tags automatically.
- Audit logs. Keep a record of which disclosure ran on which post, on which date, with which creator. If the FTC asks, the file is ready.
Performance platforms can help. When affiliate tracking, ad creative, and creator briefs all live in one system, disclosure language travels with the campaign. Coinis treats compliance metadata, including the disclosure tag, as part of the creative spec, so the same line ships across every channel without a manual copy-paste step.
A clean disclosure is not a legal hurdle. It is the cheapest trust signal a marketer can buy. Readers respect honesty about money. Algorithms, regulators, and brand partners reward it.
Related terms
Frequently asked questions
Do affiliate marketers really need a disclosure?
Yes. The FTC Endorsement Guides treat any commission, free product, or paid arrangement as a material connection. If you earn from a link, click, or code, readers must know before they act. Missing disclosures can trigger warning letters, civil penalties, and platform demonetization.
What is the difference between #ad and #sponsored?
Both signal a paid relationship. The FTC accepts #ad as the cleanest, hardest-to-misread option. #sponsored works on most platforms. Avoid #sp, #spon, #collab, #partner, or #ambassador alone. Those tags test poorly with consumers and the FTC has called several of them out by name.
Where should the disclosure appear on a blog post?
Above the first affiliate link, in plain text, at the same font size as the body. Not in the footer. Not behind a click-to-expand. Not in a sidebar widget. The FTC standard is clear and conspicuous, which means a reader sees it before they decide to click.
Does an Amazon affiliate disclosure cover everything?
No. Amazon requires its specific wording for the Associates program, but other affiliate networks, sponsored posts, and gifted products each need their own disclosure. One blanket page does not satisfy the rules. Disclose at the point of recommendation, every time.
Who is liable if a disclosure is missing?
Both the brand and the creator. The FTC has pursued advertisers, agencies, and individual influencers in the same action. Networks that fail to police their affiliates can also be named. Compliance is a shared responsibility across the chain, not a creator-only problem.