FTC Disclosure Compliance Rules
The Federal Trade Commission (FTC) requires websites to disclose any material connections with third-party companies, including those that provide compensation for referrals. This includes affiliate links, sponsored content, and other forms of advertising.
What Are Affiliate Links?
Affiliate links are a type of referral link. When a customer clicks on the link and makes a purchase, the website owner receives a commission for the referral. For example, if you have an affiliate link for a product on Amazon, Amazon will pay you a commission for any sales that result from that link.
What about sponsored content?
Sponsored content is content that has been sponsored by a third-party company. This content typically includes links to the company's website or products. Websites must disclose any sponsored content, as well as the fact that it has been sponsored, in order to comply with FTC regulations.