If a brand pays you, sends you product, or gives you a commission for a UGC video, the FTC expects you to say so in a way viewers cannot miss: inside the video, in words and on screen, near the start, and next to any link or code. This page collects what the FTC’s own pages say and where it bites in commission deals. It is a summary, not legal advice.
“It’s a commission deal, not a sponsorship. Do I still say #ad?”
Yes. Commission is a financial relationship, and the FTC’s rule is about relationships, not about the word “sponsored.” The same goes for free product, a share of ad spend, and a per-view payment. Every way a brand on HourlyUGC can pay you is a material connection, which is why the terms sit on the brief: you know what to disclose before you film.
Do UGC creators have to disclose commission deals?
The FTC’s guidance for influencers says to disclose any “financial, employment, personal, or family relationship” with a brand, and that money is not the only trigger: free or discounted products and other perks count (FTC, Disclosures 101, checked 2026-11-07).
Two points from the same page that catch creators out:
- Disclose even if you think your review is unbiased, and do not assume followers already know.
- Posts from outside the US can fall under US law if they will foreseeably affect US consumers.
The FTC also says it is “your responsibility” to make the disclosure. Do not rely on the brand to do it. The pay models themselves are in Commission-based UGC.
What counts as a material connection
The FTC’s FAQ describes a connection that should be disclosed when a significant minority of consumers would not expect it and it would affect how they weigh the endorsement (FTC, Endorsement Guides FAQ, checked 2026-11-07). In UGC terms:
| You received | Material connection? |
|---|---|
| A fee per video or per hour | Yes |
| A commission on sales through your link or code | Yes |
| A share of the brand’s ad spend | Yes |
| A CPM per 1,000 views | Yes |
| A free or discounted product | Yes |
| A product you bought yourself, no relationship with the brand | No disclosure needed |
On free product, the FAQ is explicit that it does not matter whether the company gives you a code, ships it to you, gives you money to buy it, or reimburses you afterwards.
How to disclose in a video
The FTC’s influencer page says to put the disclosure in the video itself, not only in the description, and ideally in both audio and visuals. The FAQ adds that when an endorsement is both visual and audible, “the disclosure should be made both visually and audibly,” and that viewers are “more likely to miss a disclosure at the end of the video,” so it belongs at the start.
In a 30-second UGC clip:
- Say it in the first line: “This is a paid partnership with Acme” or “I earn a commission if you buy through my link.”
- Put the same words on screen long enough to read.
- Repeat it at the top of the caption, not under a wall of hashtags.
- If the video runs as a partnership ad from your handle, the brand is named as sponsor on the ad (HourlyUGC blog, checked 2026-11-07). Keep the spoken and on-screen disclosure anyway, because the video also lives on your feed.
For live streams, the FTC says to repeat the disclosure periodically so viewers who join late still see it.
Wording that works, and wording that does not
From the FTC’s two pages (checked 2026-11-07):
| Works | Does not work on its own |
|---|---|
| “ad,” “advertisement,” “sponsored,” “#ad” at the start | “sp,” “spon,” “collab” |
| “Paid partnership with Acme” | “ambassador,” “#ambassador” |
| “Thanks to Acme for the free product” (when that is all you got) | “Thanks Acme” with no mention of what you got |
| “I get commissions for purchases made through links in this post” | “Affiliate link” alone; a “buy now” button |
| “Paid link” next to a link | “commissionable link” (the FAQ calls it probably not clear) |
| “Gifted,” “#client,” “#endorsement,” “#sweepstakes” alone |
Three more rules from the same pages: same language as the endorsement; not buried among hashtags or links; not behind a “more” link or in a bio.
Do platform tools count?
Use them, and do not stop there. The FTC’s 2023 update says a platform’s built-in disclosure tool “might not be an adequate disclosure” (FTC press release, 29 June 2023), and the influencer page says not to rely solely on it.
What the platforms require on top of the law:
- TikTok requires creators to “enable the commercial content disclosure toggle” for branded content and applies its label automatically; its policy says you are responsible for complying “with all applicable laws and regulations” (TikTok Branded Content Policy, checked 2026-11-07).
- YouTube asks you to tick “My video contains paid promotion like a product placement, sponsorship, or endorsement,” which adds a label at the start, and says creators are responsible for “complying with all applicable legal requirements” (YouTube Help, checked 2026-11-07).
- Instagram and Facebook have a paid partnership label for branded content; a partnership ad names the brand as sponsor on the ad.
Toggle the tool and say it in the video. Both.
Affiliate links and codes in captions
Commission-based UGC almost always comes with a link or a code. The FTC’s FAQ says to disclose the relationship clearly and near the link, and that affiliate disclosures apply to video reviews too. Put “I earn a commission if you buy through my link or code” in the first line of the caption, and say it in the video. A code with no disclosure is the most common miss. How those links and codes credit you is in How to get paid commission for UGC.
What happens if you do not disclose
The Endorsement Guides do not themselves have the force of law, but the FTC says practices inconsistent with them can lead to enforcement under the FTC Act, and that an endorser who is not an expert “may be liable” for misleading or unsubstantiated claims (FTC, Endorsement Guides FAQ, checked 2026-11-07). Brands are exposed as well: the FAQ says a company “is ultimately responsible for what others do on your behalf.” That is why a serious brand writes the disclosure into the brief, and why a brand that asks you to skip it is one to drop.
Two numbers and one rule:
- The maximum civil penalty for a knowing violation of an FTC rule is $53,088 per violation, effective 17 January 2025, and kept at the 2025 level for 2026.
- The FTC’s rule banning fake reviews and testimonials took effect in 2024 and lets the agency “seek civil penalties against knowing violators.” It bans, among other things, paying for reviews conditioned on a particular sentiment and undisclosed insider reviews (FTC press release, 14 Aug 2024).
- You cannot say you love a product you did not try, or make a claim the brand cannot back up.
A disclosure checklist for commission-based UGC
- Spoken in the first line of the video.
- On screen, readable, at the start.
- First line of the caption, not under hashtags.
- Next to every link and code: “I earn a commission.”
- Platform toggle on.
- Same language as the video.
- Repeated during a live.
Is this legal advice?
No. These are the FTC’s own published pages, summarized and dated. Rules outside the US differ. If you are unsure, ask a lawyer or read the FTC pages linked above in full.
Find campaigns on HourlyUGC
Campaigns on HourlyUGC state the pay before you accept, so you know what to disclose: hourly, per video, commission on sales, a share of Meta ad spend, CPM, or samples. Find campaigns on HourlyUGC.