What are the FTC rules for affiliate marketing?
Disclosure Requirements
The FTC's Endorsement Guides say that if you have a financial relationship with a product or brand, you must disclose it. This includes earning commissions, receiving free products, or being paid to post. The disclosure must be clear and conspicuous—meaning it's hard to miss and easy to understand.
The disclosure should appear before the affiliate link, not after. On a blog, that means near the top of the post. In a video, say it early and also put it in the description. On social media, use a clear tag like #ad or #affiliate at the beginning of the caption.
Truth in Claims
You cannot make false or misleading claims about a product, even if the manufacturer does. If you say a supplement cures a disease, you need scientific evidence. If you claim a tool is the 'best,' you should have a reasonable basis for that opinion, like comparing it to others.
The FTC also prohibits fake reviews and testimonials. Don't invent success stories or use someone else's experience as your own. If you received a free product to review, disclose that too—it's a material connection.
- Disclose free products or discounts received
- Don't claim results you haven't achieved
- Avoid fake urgency or misleading scarcity
- Substantiate health, income, or performance claims
- Use real testimonials with permission
Enforcement and Penalties
The FTC can investigate and fine violators. In recent years, they've sent warning letters to influencers and brands. While small affiliates are less likely to be targeted, the rules apply to everyone. Platforms like Amazon Associates also have their own disclosure policies.
To stay compliant, treat every affiliate post as if a regulator will read it. Put yourself in the reader's shoes: would they clearly know you might get paid? If not, adjust your disclosure. When in doubt, over-disclose.
Common mistakes
- Believing that only big companies need to follow FTC rules.
- Assuming a disclosure on a separate 'disclosure' page is sufficient.
- Thinking that using #affiliate without explanation is clear enough.
