The Federal Trade Commission is no longer sending warning letters; they are levying fines. The updated Endorsement Guides make it clear that disclosures must be "unavoidable".
Visual and Audible Disclosures
For TikTok and Reels, a text overlay that is hidden by the UI buttons is considered non-compliant. The disclosure must be superimposed over the video itself and, crucially, if the endorsement is in the audio, the disclosure must be audible as well.
We are advising clients to implement a strict "Compliance Checklist" for all influencer activations, requiring approval of the draft content before it goes live to ensure these standards are met.