If you think the Federal Trade Commission (FTC) only targets large corporations, think again. Online creators, coaches, business owners and marketers are very much on their radar. Here’s exactly what the FTC expects from you and what can happen if you don’t comply.
Who should read this?
If you're promoting products, publishing content or testimonials, collecting emails, or running ads online, these rules apply to you whether you’re a solo creator or a six-figure business.
1. Disclose paid partnerships and free products
- If you're paid in money, products, discounts, or perks, you must disclose it in a place that's hard to miss.
- Example: You receive a free skincare set and post a positive review without mentioning that it was a gift. That’s a violation.
- Tip: Use clear language like “This post is sponsored by such and such company or #ad. Don’t bury disclosures in footnotes or swipe-through captions.
2. Avoid deceptive or unsupported claims
- All claims about income, health, or product performance must be truthful, not exaggerated, and backed by written evidence.
- Example: You post that your course helped someone “make $50K in 30 days” when it only happened once. That’s misleading unless you clarify that the result is not typical.
- Tip: Include disclaimers like “Results vary” and avoid guarantees unless you can prove they're common.
3. Handle customer data responsibly
- If you're collecting emails, names, or payment info, you’re responsible for protecting it and telling users how you’ll use it.
- Example: You run a lead magnet to collect emails but don’t mention how you'll use the info. That’s a compliance risk.
- Tip: Publish a Privacy Policy and secure your data collection system (especially if you use forms or checkout pages).
What happens if you ignore these rules?
- Influencers have been fined and banned from platforms.
- Companies have been ordered to refund customers and revise their ad practices.
- Repeat violations can trigger formal FTC investigations or legal action.
- Example: The FTC fined social media influencers who repeatedly failed to disclose sponsorships despite warnings.
How to stay compliant and protect your business.
- Add clear, visible disclosures to all paid content.
- Review your Privacy Policy and Terms of Service to reflect what you actually do.
- Get a legal review of your opt-ins, email funnels, and ad claims.
Disclaimer: This article is for general informational purposes only and does not constitute legal advice. For personalized compliance help, consult a qualified attorney.
