FTC Endorsement Guides for Amazon Sellers: Free Products, Material Connections and Disclosure

Under the FTC Endorsement Guides (16 CFR Part 255), a free or discounted product you send to a reviewer, creator or influencer counts as a material connection, whether or not you ask for a review in return. If a significant minority of the audience would not expect that connection, the endorser has to disclose it clearly and conspicuously, and the Guides say you as the seller should tell them to and monitor whether they do. This guide reads the Part 255 text (eCFR current as of 2026-10-07, data checked 2026-10-11) and maps its worked examples to how Amazon sellers hand out product.

The separate FTC rule on fake and incentivized reviews (16 CFR Part 465) is covered in our FTC Consumer Reviews and Testimonials Rule guide.

What the FTC Endorsement Guides (16 CFR 255) Cover

Part 255 is titled “Guides Concerning Use of Endorsements and Testimonials in Advertising”. The current text was published at 88 FR 48102 on July 26, 2023, according to the eCFR source note (checked 2026-10-11).

§ 255.0(a) describes the Guides as “administrative interpretations of laws enforced by the Federal Trade Commission” on how section 5 of the FTC Act applies to endorsements. Whether a particular endorsement is deceptive “will depend on the specific factual circumstances of the advertisement at issue”, so this page gives criteria, not verdicts on specific campaigns.

The definition of an endorsement is wide. § 255.0(b) defines it as “any advertising, marketing, or promotional message for a product that consumers are likely to believe reflects the opinions, beliefs, findings, or experiences of a party other than the sponsoring advertiser”. It lists “tags in social media posts” among things that can be endorsements. For an Amazon seller, that reaches:

• A creator’s TikTok, Instagram or YouTube video about your product, including one made through Amazon Creator Connections.
• A blogger’s review page with links to your listing, including Amazon Associates links (see the Amazon Associates program guide for Amazon’s own disclosure wording).
• A review posted by someone who received your product free or discounted, on a retail site or anywhere else.
• A post by an employee, a family member or a contractor that praises your brand.

The baseline is § 255.1(a): endorsements “must reflect the honest opinions, findings, beliefs, or experience of the endorser.”

When a Free Product Becomes a Material Connection

§ 255.5(a) is the core rule for this topic, in four parts.

1. What has to be disclosed. A connection “between the endorser and the seller of the advertised product that might materially affect the weight or credibility of the endorsement” and that “is not reasonably expected by the audience” must be “disclosed clearly and conspicuously.”

2. Free product is named directly. Material connections “can include monetary payment or the provision of free or discounted products (including products unrelated to the endorsed product) to an endorser, regardless of whether the advertiser requires an endorsement in return.” Sending product with no strings attached does not take it outside the rule, and a different product from your catalog still counts.

3. Other benefits count too, including “early access to a product” and the possibility “of winning a prize”, plus business, family and personal relationships.

4. The audience threshold. “A material connection needs to be disclosed when a significant minority of the audience for an endorsement does not understand or expect the connection.” The test is the audience’s expectation, not the dollar value.

The table sorts common seller arrangements by what § 255.5(a) names. Whether a given post needs a disclosure still turns on the audience test.

On detail, the disclosure “does not require the complete details of the connection, but it must clearly communicate the nature of the connection sufficiently for consumers to evaluate its significance.”

What “Clear and Conspicuous” Means for a Free-Product Disclosure

The FTC Endorsement Guides define the standard in § 255.0(f): a disclosure is clear and conspicuous when it is “difficult to miss (i.e., easily noticeable) and easily understandable by ordinary consumers.” The definition then adds specific conditions:

• Same channel as the claim. Visual claims need the disclosure “in at least the communication’s visual portion”; audible claims in the audible portion.
• Stand out. A visual disclosure should, “by its size, contrast, location, the length of time it appears, and other characteristics”, stand out so it is “easily noticed, read, and understood.”
• Unavoidable online. “In any communication using an interactive electronic medium, such as social media or the internet, the disclosure should be unavoidable.”
• No contradiction. The disclosure “should not be contradicted or mitigated by, or inconsistent with, anything else in the communication.”

The FTC staff FAQ, FTC’s Endorsement Guides: What People Are Asking (checked 2026-10-11), applies this to free products in plain terms:

• On wording: “The word ‘Gifted,’ by itself without a brand reference, is likely to be ambiguous.” The FAQ says “Gifted by” plus the brand name should be enough when a free product is all the endorser received.
• On placement: “A single disclosure on your home page won’t be sufficient”, because visitors may read an individual review without seeing it.
• On scope: someone who got a free or discounted product to review in one place should disclose the connection everywhere they endorse it.

§ 255.5(b)(13) adds a limit that matters when sellers combine product and cash: a reviewer who discloses only that an app was free implies “that the consumer did not receive anything else for the review”, so “If the app developer also gave the consumer $50 for the review, the mere disclosure that the app was free would be inadequate.”

Worked Examples From the Guides That Map to Amazon Sellers

§ 255.5(b) contains 14 examples. The ones below involve free product, incentives or reposting; each row paraphrases the example.

Two examples show where no disclosure is needed, which helps calibrate the test. In (2), a film star’s paid TV commercial needs no payment disclosure because such payments “likely are ordinarily expected by viewers.” In (10), a fee paid to a certification body for a seal of approval is expected by consumers, so using the seal without disclosing the fee “would not be deceptive.”

Example (6)(ii) adds that even with disclosures on every incentivized review, the practice “could still be deceptive” if those star ratings materially raise the average rating.

Who Is Responsible: the Seller or the Creator?

Both, under different paragraphs.

The advertiser (you). § 255.1(d) says advertisers “are subject to liability for misleading or unsubstantiated statements made through endorsements or for failing to disclose unexpected material connections between themselves and their endorsers”, and “may be liable for a deceptive endorsement even when the endorser is not liable.” Advertisers should:

1. “Provide guidance to their endorsers on the need to ensure that their statements are not misleading and to disclose unexpected material connections”;
2. “Monitor their endorsers’ compliance”; and
3. “Take action sufficient to remedy non-compliance and prevent future non-compliance.”

These steps are “not a safe harbor”, but should “reduce an advertiser’s odds of facing a Commission enforcement action.” The FTC staff FAQ adds that delegating the program to an outside company does not remove your responsibility.

The endorser. § 255.1(e) says endorsers “may also be liable for failing to disclose unexpected material connections between themselves and an advertiser”.

Claims about results. § 255.2(a) says “Consumer endorsements themselves are not competent and reliable scientific evidence.” A creator saying your supplement or gadget fixed their problem does not substantiate that claim for you.

Amazon’s own programs add terms on top of Part 255, not in place of it: Creator Connections has a creator message field where Amazon lists required disclosures among the contents (see Amazon Creator Connections); Vine is covered in Amazon Vine enrollment.

Checklist Before You Send Free Product

We run this list before any unit ships to a reviewer or creator.

• Write down every benefit. Product, discount code, fee, commission, early access, giveaway entry (§ 255.5(a)).
• Tell the endorser in writing, at the time you send it, that the connection should be disclosed (§ 255.5(b)(7), § 255.1(d)(1)).
• Give wording that names your brand and the benefit. “Gifted by [Brand]” for product only; mention the fee too if one was paid (FTC staff FAQ; § 255.5(b)(13)).
• Ask for the disclosure in the content itself: on screen for video, spoken for audio, at the start of the caption rather than only on a profile (§ 255.0(f)).
• Do not require positive content. Under (6)(ii), required positive reviews make a disclosure insufficient.
• Check the posts. Keep a record of what you reviewed and when (§ 255.1(d)(2)).
• Fix or stop. If a post lacks a disclosure, ask for an edit; stop working with endorsers who will not comply (§ 255.1(d)(3)).
• Add your own disclosure when you repost creator content on brand channels (§ 255.5(b)(3)(iii)).

For how this fits with requesting reviews from ordinary buyers on Amazon, see the Amazon product reviews guide and review request software compared.

Frequently Asked Questions

Do I need a disclosure if I send free product and do not ask for a review?

Yes, the connection still exists. § 255.5(a) covers free products “regardless of whether the advertiser requires an endorsement in return”; a disclosure is needed if a significant minority of the audience would not expect it.

Is “#gifted” enough?

The FTC staff FAQ says “Gifted” without a brand reference is likely ambiguous; “Gifted by” plus the brand should be enough when free product is the only benefit. If a fee was also paid, § 255.5(b)(13) says that is inadequate.

Can a disclosure in the creator’s bio cover all their posts?

The FTC staff FAQ says a single disclosure on a home page is not sufficient, because readers can land on an individual review without seeing it. § 255.0(f) says disclosures on social media “should be unavoidable.”

Do the FTC Endorsement Guides apply when my brand reposts a creator?

Yes. Under § 255.5(b)(3)(iii), when an advertiser reposts an endorsement whose disclosure is missing or not visible in the repost, the advertiser “should clearly and conspicuously disclose its relationship” in its repost.

Conclusion

For Amazon sellers, Part 255 comes down to three points. A free or discounted unit is a material connection under § 255.5(a) whether or not you ask for a post. When a significant minority of the audience would not expect it, the endorser must disclose it in a way that is hard to miss and names the actual benefit. And under § 255.1(d), you brief endorsers, check their posts and act on gaps.

Sources: 16 CFR Part 255 on eCFR (current as of 2026-10-07, checked 2026-10-11); FTC’s Endorsement Guides: What People Are Asking (FTC staff, checked 2026-10-11).