How the FTC's 2023 endorsement guides define disclosure for paid coverage

When a publication runs a paid article or a social media creator accepts compensation to promote a product, the FTC requires a clear disclosure of that relationship. The distinction between paid placement and earned editorial coverage is central to how publications maintain credibility and how brands avoid legal risk. The Federal Trade Commission updated its Endorsement Guides on June 29, 2023, for the first time since 2009, establishing stricter standards for what counts as a disclosure and when one is required.

Founders and executives evaluating PR firms need to understand these rules because a misstep—a disclosure that is too small, too vague, or placed where readers won't notice it—can create legal exposure for both the brand and the publication. The FTC enforces these guides and can bring cases against advertisers and their agencies for inadequate disclosures. More importantly, a hidden paid placement damages the credibility that earned media is supposed to build.

What material connections must be disclosed

The FTC's core rule is that any 'material connection' between an endorser and a marketer must be disclosed if it would affect how consumers evaluate the endorsement. Material connections include payment, free products, affiliate commissions, employment, and family relationships. The FTC asks a simple question: would knowing about this relationship change how someone weighs the endorsement?

The connection doesn't have to be financial—a product gifted to a social media influencer, a job at a company, or any other relationship that isn't obvious to the audience counts as material. This applies to bloggers, influencers, employee endorsements, and paid reviews.

Clear and conspicuous: what the 2023 update requires

The FTC's definition of 'clear and conspicuous' disclosure evolved in the 2023 update to address digital marketing realities. A disclosure must now be 'difficult to miss (i.e., easily noticeable) and easily understandable by ordinary consumers.' More strictly, disclosures in online and social media contexts must be 'unavoidable'—consumers cannot have to click through or scroll to find material information.

Disclosures must also match the format of related claims. If an influencer makes claims about a product on camera, the disclosure must be audible and visible in the video—not just in the text description below. On social media, tools like Instagram's 'Paid partnership' label may not be sufficient if they're small or easy to miss. Hashtags like #ad can meet the standard if placed prominently, but combining them with other words or burying them at the end of a post is unlikely to be effective. The FTC specifically noted that using abbreviations or usernames to identify sponsoring entities can fail to adequately identify the organizations making the disclosure.

When earned editorial does not require disclosure

The FTC distinguishes between earned editorial and paid placement based on what audiences expect. A newspaper music critic who receives free concert tickets does not need to disclose the free attendance because readers understand that newspaper critics review events as part of their job. The FTC has stated it 'does not consider reviews published in traditional media to be sponsored advertising.' Readers already expect a professional reviewer's relationship to their publication, so the connection is transparent by context.

The boundary shifts the moment the relationship becomes non-obvious. An independent blogger who receives the same free concert tickets must disclose the gift because readers don't automatically assume the blogger receives free items. Similarly, a social media influencer whose endorsements are actually paid advertisements must disclose the payment, while a magazine columnist employed by the magazine does not. The distinction turns on whether the audience can reasonably infer the relationship from context alone.

Liability extends to agencies and intermediaries

The 2023 update expanded who the FTC holds accountable. Advertisers, endorsers, and intermediaries—including PR firms, agencies, and platforms—all bear responsibility for ensuring disclosures are clear and compliant. A PR agency cannot disclaim liability by claiming the brand or publication is responsible for the disclosure. If a placement lacks a proper disclosure, the brand, the publication, and any agency involved can face FTC enforcement.

FTC enforcement has included cases against companies and endorsers for undisclosed material connections. Penalties have included cease-and-desist orders, refunds to consumers, and civil penalties. Beyond FTC enforcement, inadequate disclosure damages the credibility the publication and brand are trying to build. If readers discover that an article was paid for but appeared to be independent editorial, the revelation erodes trust in the publication and raises questions about the brand's willingness to buy credibility rather than earn it.

Specific scenarios: contributor networks and affiliate links

Contributor networks—where publications accept paid articles from outside writers—require clear disclosure that the article is sponsored. The article may appear alongside earned editorial, but readers must know the difference. An author bio that mentions a company but doesn't disclose that the author is paid by that company is inadequate. The disclosure must be placed where readers will see it, likely at the top or bottom of the article, and stated clearly: 'This article is sponsored by [Company]' or 'Company paid for this article.'

Affiliate links—where a creator earns commission if readers click and buy—must also be disclosed. A fashion blogger linking to products in a social media post must disclose the affiliate relationship, even if the blog post itself is positive. The FTC's guidance emphasizes that disclosure should appear in the same medium as the endorsement. A video disclosure should be in the video, a social post disclosure should be in the post itself, not buried in a profile bio or linked external page.

Why the rules changed and what comes next

The previous endorsement guides dated from 2009 and did not address the scale of influencer marketing, fake reviews, or the suppression and boosting of consumer reviews on digital platforms. The FTC updated the guides to address modern advertising practices, including fake competitor reviews, virtual influencers, and the manipulation of review visibility. The Commission also updated its FAQ document with 40 additional questions in 2023 to clarify how the rules apply across different platforms and content types.

The updated guides gave advertisers and publishers clear notice of the FTC's enforcement priorities. For founders and executives, the practical takeaway is that earned editorial from traditional media reviewers requires no disclosure, while paid placements require disclosures that meet a stricter standard than many current practices satisfy. Vague or inconspicuous disclosures create legal risk and undermine credibility.