sponsorship disclosure
Sponsorship disclosure is a legal requirement that applies to radio, television, and social media, requiring clear identification of sponsored content and its source. In the United States, sponsored material includes any broadcast or post made in exchange for money, services, or other valuable consideration. Political content is also covered (even if no payment is made) to prevent hidden influence over public opinion. See: 47 CFR § 73.1212 - Sponsorship identification; list retention; related requirements.
47 U.S. Code § 317 requires broadcasters to obtain sponsorship details from all involved personnel, and the Federal Communications Commission (FCC) enforces compliance. Failure to disclose sponsorship, known as payola, is punishable by fines or imprisonment.
On social media, the Federal Trade Commission (FTC) requires disclosure when there is a “material connection” between the person posting and the brand, including payment, gifts, or employment ties. Influencers must clearly label sponsored posts using terms like #ad or #sponsored. Scrutiny of social media platforms like TikTok, have prompted the FTC and Congress to push for stricter enforcement of disclosure rules, especially in cases involving foreign influence, algorithmic promotion, and youth-targeted content.
See: FTC Guidance for Social Media Influencers, FTC’s Endorsement Guides: Being Up-Front With Consumers, 47 U.S. Code § 317 - Announcement of Payment for Broadcast, 16 CFR § 255.5 - Disclosure of Material Connections, 16 CFR § 437.4 - Earnings claims, 47 CFR § 73.1212 - Sponsorship Identification; List Retention; Related Requirements.
[Last reviewed in July of 2025 by the Wex Definitions Team]
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