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Rights, disclosure and AI

Do UGC ads need to be disclosed?

Yes, when there's a paid relationship. Ads run from your ad account are already labelled as sponsored. If a creator posts about your product organically in exchange for payment or free product, they must clearly disclose it, and platforms provide branded-content or paid-partnership labels for this.

When disclosure is needed

The FTC's endorsement guidance says that if there's a connection between an endorser and a brand that viewers wouldn't expect, such as payment, free product, or being an employee or relative, it should be disclosed clearly and conspicuously.

SituationWhat to do
Ad run from your ad accountPlatform labels it "Sponsored"; keep claims honest
Creator posts on their own account for pay or free productClear disclosure in the post plus the platform's paid-partnership tool
Ad run from a creator's handleUse Meta partnership ads or TikTok Spark Ads, which show the relationship
Employee or family member on cameraMake the connection clear

Built-in tools may not be enough

The FTC's 2023 update to its Endorsement Guides noted that a platform's built-in disclosure tool might not, on its own, be an adequate disclosure. Clear words in the video or caption, like "paid partnership" or "ad", help.

AI content is a separate question

Labelling a video as an ad doesn't cover AI labelling. Platforms such as TikTok have separate rules for realistic AI-generated content.

General information, not legal advice.

Our own rules at ScrollStop Labs: AI presenters never pose as real customers, claims come from the label, and AI labels stay on.

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