FTC Endorsement Guides and AI Disclosure Rules (2026)
Educational information, not legal advice. Facts checked against the official text linked below, current as of July 2026.
The FTC's Endorsement Guides require disclosure of both paid relationships and AI involvement in content. Under this guidance, when substantive content is generated with AI, creators must inform their audience. The 2026 guidance update is now being enforced across all account sizes, regardless of follower count.
Key facts
- Jurisdiction:
- United States, federal
- Effective:
- Updated guidance May 2026; enforcement active
- Penalty:
- Civil penalties up to $53,088 per violation (2026 amount, adjusted annually). Each non-compliant post can count separately.
- Official text:
- FTC Endorsement Guides
Who this law covers
This law applies to any creator, influencer, or business publishing sponsored content, ads, endorsements, or reviews that involved meaningful AI help. It covers YouTube videos, Instagram posts, TikTok content, blog reviews, email newsletters, and any other channel where content reaches an audience.
The law does not cover routine tool use. Spell-checkers, grammar tools, autocomplete suggestions, and basic image resizing are not considered substantive content generation.
Account size does not create an exemption. The FTC applies the same disclosure rules to small accounts as to large brands, and the same penalties apply regardless of follower count.
The law applies to creators in the United States and to content that reaches U.S. audiences under FTC jurisdiction.
What the law requires
The FTC requires two separate disclosures. First, the paid or sponsored relationship must be disclosed (that payment or product was received). Second, AI involvement must be disclosed when AI generated substantive content for that post or video.
Substantive content is generally understood as material that shapes the endorsement message. When AI wrote a product review, created a caption, generated an image, or produced video content, the FTC considers this substantive. When AI only proofread or formatted content created by the human, this is typically considered routine tool use and does not require disclosure.
The disclosure must be clear and conspicuous. Readers must see the disclosure without clicking, scrolling, or expanding hidden text, and the disclosure must be easy to understand in plain language.
For video content, the disclosure must appear on screen within the first few seconds. Placing it only at the end or in a description does not meet this requirement.
Direct language is required. Examples include 'This review was written with AI help,' 'AI generated the copy for this post,' or 'Made with AI.' Vague phrases like 'created with technology' do not satisfy the requirement.
Deadlines and penalties
The updated AI disclosure guidance was issued in May 2026, and enforcement is currently active.
Civil penalties can reach $53,088 per violation, adjusted annually for inflation. Each non-compliant post can count as a separate violation, so exposure adds up quickly across a campaign.
The FTC enforces these rules through civil action. Violations can be reported, and the FTC may investigate, demand corrective action, or pursue settlements and fines.
How to comply in practice
Before posting sponsored or endorsed content, the question to assess is whether AI generated substantive content. If yes, disclosure is required. If no, the paid-relationship disclosure is still required, but not an AI-specific disclosure.
The paid-relationship disclosure should be placed near the beginning of the post or video. On Instagram or TikTok, the platform's built-in paid-partnership labels should be used if available. For blog posts, a note at the top is appropriate. For videos, the disclosure should appear on screen within the first few seconds.
The AI disclosure should appear immediately after or alongside the paid-relationship disclosure. Both must be clear and visible, though they can appear in the same sentence.
Examples of disclosure wordings that comply with the standard: 'Sponsored: [Company name]. This review was written with AI help.' For video: on-screen text in the first few seconds stating 'Paid partnership with [Company]. Content written with AI assistance.' For a blog post: 'I received a free product from [Company] in exchange for this review, which was drafted with AI help.'
Documentation of the process is advisable. Records showing which posts used AI and how demonstrate good-faith compliance if questions arise.
Common misconceptions
Misconception: 'I only used AI for a small part, so I do not need to disclose.' The FTC requires disclosure if AI generated any substantive portion of the content. The size of the AI contribution does not affect the requirement.
Misconception: 'If I do not mention the sponsorship, I do not need to disclose AI use.' Both disclosures are required separately. Neither the sponsorship nor the AI involvement can be hidden. Both must be disclosed.
Misconception: 'My followers know I use AI, so I do not need to say it explicitly.' The law requires explicit disclosure. Assuming the audience already knows is not compliance. The requirement is to state it plainly in each post.
Misconception: 'The penalty only applies if the FTC sues me.' The FTC can enforce the rules against individual creators. Account size does not provide protection. Compliance is required regardless of visibility.
Frequently asked questions
Does using ChatGPT to write a product review require disclosure?
When AI-generated text becomes substantive content in a review, disclosure is required under the FTC rules. If ChatGPT drafted the review and was posted with minimal changes, the FTC requires disclosure of AI involvement. If AI was only used to check grammar on an existing review, this is typically considered routine tool use and does not require disclosure.
What if I use AI to create images but write my own caption?
In sponsored or endorsement content, AI-generated images count as substantive content, so the AI disclosure is required for them. A separate disclosure is not needed for a caption written without AI help. The paid-relationship disclosure is still required at the start of the post.
Do I need to disclose AI if it was not sponsored or paid?
The Endorsement Guides are about endorsements and advertising, so they turn on when there is a material connection: payment, free product, affiliate links, or a business relationship. A purely personal, unpaid post is generally outside their scope. Other laws can still apply to unpaid AI content, though. EU AI Act Article 50, for example, covers AI-generated content shown to EU audiences whether or not it is sponsored.
Where exactly should I put the disclosure on TikTok or Instagram?
The platform's built-in paid-partnership label should be used if applicable. For the AI disclosure, it should appear as text on screen in the first few seconds, or prominently in the caption above the fold, so viewers see it without scrolling. Both disclosures must be visible without tapping or clicking.
What happens if a post lacks proper AI disclosure?
Each non-compliant post can count as a separate violation under the FTC rules, with civil penalties of up to $53,088 per violation. The practical fix when a miss is discovered is to correct the post: edit it to add the proper disclosures, or take it down and repost it compliant.
Does this apply to private accounts or small local businesses?
The FTC does not formally exempt small accounts or local businesses. If content reaches an audience and AI generated substantive content in a sponsored post, the disclosure requirement applies under the rules.
Sources
Does this law apply to you?
The free checker asks eight yes-or-no questions and maps your answers to this law and four others, with sample disclosure wording for anything that needs action.
Run the free checkThis page is educational information, not legal advice. Laws change and your situation may differ. Verify against the official text linked above and consult a licensed attorney for advice about your specific situation.