Affiliate Marketing Disclosure Requirements (2026)

Introduction to Affiliate Marketing Regulation

Affiliate marketing has become one of the most widely used commercial strategies on the internet. Businesses pay commissions to third-party publishers - known as affiliates - who refer customers through tracked links, promotional content, or recommendations. While this model offers significant commercial benefits, it raises important legal and regulatory questions about transparency, consumer protection, and advertising standards.

Regulators across the UK, European Union, and United States have established rules requiring affiliates and merchants to disclose the commercial nature of their relationships to consumers. Failure to comply with these rules can result in enforcement action, financial penalties, and reputational damage.

This guide provides a detailed overview of affiliate marketing laws and disclosure requirements across these three jurisdictions. It is intended as a practical reference for affiliates, merchants, and marketing professionals who need to understand their legal obligations.

What Is Affiliate Marketing?

Affiliate marketing is a performance-based marketing arrangement in which a business (the merchant or advertiser) rewards one or more affiliates for each customer or sale generated through the affiliate's own marketing efforts. The affiliate promotes the merchant's products or services using a unique tracking link, and receives a commission when a consumer follows that link and completes a qualifying action, such as making a purchase or signing up for a service.

Common forms of affiliate marketing include product review websites, comparison platforms, blog posts containing product recommendations, social media posts with tracked links, email newsletters featuring sponsored products, and YouTube videos with affiliate links in the description.

The core regulatory concern with affiliate marketing is that consumers may not realise that the content they are reading or viewing is commercially motivated. When an affiliate stands to earn a commission from a recommendation, that financial relationship can influence the content in ways the consumer cannot see. Disclosure requirements exist to address this information asymmetry and allow consumers to make informed decisions.

UK Disclosure Requirements

The Consumer Protection from Unfair Trading Regulations 2008

The Consumer Protection from Unfair Trading Regulations 2008 (CPRs) are the primary piece of UK legislation governing affiliate marketing disclosures. These regulations implement the EU Unfair Commercial Practices Directive into UK law and, following Brexit, continue to apply as retained EU law.

Under Regulation 3, a commercial practice is unfair if it contravenes the requirements of professional diligence and materially distorts, or is likely to materially distort, the economic behaviour of the average consumer. Regulation 6 prohibits misleading actions, including practices that deceive or are likely to deceive the average consumer in relation to matters including the nature of the product, the motives of the commercial practice, or the identity of the trader.

Crucially, Regulation 7 addresses misleading omissions. A commercial practice is a misleading omission if it omits or hides material information that the average consumer needs to make an informed transactional decision. The commercial intent of a communication is expressly identified as material information. This means that failing to disclose an affiliate relationship - where the publisher has a financial incentive to promote a product - is likely to constitute a misleading omission under the CPRs.

Schedule 1 of the Regulations also lists practices that are considered unfair in all circumstances. Paragraph 11 of Schedule 1 identifies as automatically unfair the practice of using editorial content in the media to promote a product where a trader has paid for the promotion without making that clear in the content or by images or sounds clearly identifiable by the consumer (advertorial).

The CAP Code and ASA Guidance

The UK Code of Non-broadcast Advertising and Direct & Promotional Marketing (the CAP Code) is administered by the Advertising Standards Authority (ASA) and applies to advertising and marketing communications in non-broadcast media, including websites, social media, and email.

Rule 2.1 of the CAP Code requires that marketing communications must be obviously identifiable as such. Rule 2.4 states that marketers and publishers must make clear that advertorials are marketing communications - for example, by using labels such as "advertisement feature." These rules apply to affiliate content where the publisher receives a commission or other financial benefit for promoting a product.

The ASA has published specific guidance on affiliate marketing, making clear that affiliate content is subject to the CAP Code where the affiliate has a commercial relationship with the merchant. The ASA expects affiliates to use clear and prominent labels - such as "ad," "advertisement," or "affiliate link" - that are not hidden in footnotes, buried at the end of lengthy content, or obscured by ambiguous language.

The ASA's approach to enforcement has become increasingly active. In recent years, the ASA has investigated and upheld complaints against content creators and publishers who failed to adequately disclose affiliate relationships, and has referred persistent offenders to Trading Standards for further action under the CPRs.

Competition and Markets Authority Guidance

The Competition and Markets Authority (CMA) has also published guidance on online endorsements and reviews. While this guidance is primarily aimed at influencer marketing, it is relevant to affiliate marketing because affiliates who endorse products in a personal capacity (for example, through personal blogs or social media accounts) must disclose the commercial nature of those endorsements.

The CMA's guidance emphasises that disclosures must be upfront, prominent, and clear. Consumers should not have to click through to another page, scroll to the bottom of a post, or interpret vague language such as "thanks to" or "in collaboration with" to understand that content is commercially motivated.

EU Regulations

The Unfair Commercial Practices Directive

Directive 2005/29/EC, commonly known as the Unfair Commercial Practices Directive (UCPD), is the principal EU-level instrument governing misleading and unfair commercial practices. The UCPD establishes a harmonised framework across EU Member States, setting out general prohibitions against unfair, misleading, and aggressive commercial practices.

Article 6 of the UCPD prohibits misleading actions, while Article 7 addresses misleading omissions. Article 7(2) provides that where a commercial practice is an invitation to purchase, the following information is regarded as material if not already apparent from the context: the identity of the trader, the main characteristics of the product, the price, and the arrangements for payment. The commercial intent behind a communication is treated as material information, meaning that a failure to disclose an affiliate relationship can amount to a misleading omission.

Annex I to the UCPD lists commercial practices that are considered unfair in all circumstances. Point 11 of Annex I - mirroring the UK CPRs - identifies as automatically unfair the use of editorial content in the media to promote a product where a trader has paid for the promotion without making that clear.

Individual EU Member States have transposed the UCPD into national law and may apply additional requirements. For example, Germany's Act Against Unfair Competition (Gesetz gegen den unlauteren Wettbewerb, UWG) has been interpreted by German courts to require clear labelling of commercial content, including affiliate links in online publications. France's Consumer Code (Code de la consommation) similarly prohibits misleading commercial practices, and the French Direction Generale de la Concurrence, de la Consommation et de la Repression des Fraudes (DGCCRF) has taken enforcement action against undisclosed commercial content online.

The Digital Services Act

The Digital Services Act (Regulation (EU) 2022/2065), which became fully applicable in February 2024, introduces additional transparency obligations for online platforms. While the DSA is primarily concerned with platform liability and content moderation, its advertising transparency requirements are relevant to affiliate marketing. Article 26 requires that recipients of an online platform's service can identify, for each specific advertisement displayed, that the information is an advertisement, the natural or legal person on whose behalf the advertisement is displayed, and meaningful information about the main parameters used to determine the recipient to whom the advertisement is displayed. Where affiliate content is presented through a platform that falls within the scope of the DSA, these transparency obligations may apply.

US FTC Requirements

The FTC Endorsement Guides

In the United States, the Federal Trade Commission (FTC) regulates affiliate marketing primarily through the FTC Act (15 U.S.C. § 45), which prohibits unfair or deceptive acts or practices in or affecting commerce. The FTC has issued detailed guidance in the form of the Guides Concerning the Use of Endorsements and Testimonials in Advertising (the Endorsement Guides), most recently revised in 2023.

The Endorsement Guides make clear that where there is a material connection between an endorser (including an affiliate) and a seller of a product, that connection must be clearly and conspicuously disclosed. A material connection includes any relationship that might affect the weight or credibility a consumer gives to the endorsement, such as a financial payment, free product, business or family relationship, or personal relationship.

The 2023 revisions to the Endorsement Guides strengthened disclosure requirements in several respects. The revised Guides clarify that the term "endorsement" covers virtually any statement or action by an individual that consumers are likely to believe reflects their honest opinion, and that disclosures must be clear, conspicuous, and unavoidable - not merely available to consumers who seek them out.

.com Disclosures Guidance

The FTC's .com Disclosures guidance provides specific recommendations for making effective disclosures in digital media. Key principles from this guidance include the following:

Disclosures should be placed as close as possible to the triggering claim - ideally immediately adjacent to the affiliate link or recommendation.
Disclosures should not require the consumer to scroll, click, or navigate to another page to find them.
Disclosures should use clear, unambiguous language that consumers will understand. Technical or insider jargon (such as "aff" or "#sp") may not be sufficient.
Disclosures must be legible and displayed in a font size, colour, and location that makes them noticeable.
In video content, disclosures should be superimposed on the video for a sufficient duration and, where practicable, also stated verbally.
In audio content (such as podcasts), disclosures must be spoken clearly and at a pace and volume that allows listeners to understand them.

FTC Enforcement Actions

The FTC has brought enforcement actions against both merchants and affiliates for failures to disclose material connections. In several cases, the FTC has held merchants liable for the failure of their affiliates to make adequate disclosures, on the basis that merchants have a responsibility to monitor and enforce compliance within their affiliate programmes. This principle is significant: merchants cannot insulate themselves from liability by delegating marketing activities to affiliates while failing to oversee the affiliates' compliance with disclosure obligations.

Types of Required Disclosures

The specific disclosure required will vary depending on the jurisdiction, the medium, and the nature of the affiliate relationship. However, the following categories of disclosure are generally required across the UK, EU, and US:

Affiliate Link Disclosures

Where content contains links that will earn the publisher a commission if a consumer clicks through and makes a purchase, the presence of these affiliate links must be disclosed. The disclosure should make clear that the publisher may receive a financial benefit if the consumer follows the link and makes a purchase.

Paid Partnership Disclosures

Where there is an ongoing commercial relationship between an affiliate and a merchant - such as a brand ambassador arrangement or a retainer agreement - the nature of that relationship should be disclosed. A single disclosure at the start of the relationship may not be sufficient; consumers encountering individual items of content need to be able to identify the commercial motivation behind each item.

How to Write Compliant Disclosures

The effectiveness of a disclosure depends on its clarity, prominence, and proximity to the relevant content. The following examples illustrate the difference between compliant and non-compliant disclosures.

Examples of Effective Disclosures

"This article contains affiliate links. If you purchase through these links, we may earn a commission at no additional cost to you."
"Ad - this post is sponsored by [Brand Name]."
"Paid partnership with [Brand Name]. We receive a commission for purchases made through the links in this post."
"Affiliate disclosure: we are a participant in the [Programme Name] and earn commissions on qualifying purchases made through our links."

Examples of Inadequate Disclosures

"Thanks to [Brand Name]" - this does not make clear whether the relationship is commercial or merely an expression of gratitude.
"#sp" or "#aff" - abbreviated hashtags that many consumers will not understand.
A generic disclosure buried in a website footer or on a separate disclosure policy page, with no indication in the content itself.
"This post may contain affiliate links" placed only at the very end of a 3,000-word article, well below the relevant links.
A disclosure visible only on the desktop version of a page but hidden or truncated on mobile.

General Principles for Effective Disclosures

Across all jurisdictions, the following principles apply to compliant disclosures:

The disclosure should be placed before or immediately adjacent to the first affiliate link or commercial recommendation in the content.
The disclosure should use plain language that a typical consumer will understand without specialist knowledge.
The disclosure should be visually prominent - not in a smaller font size, a lighter colour, or a less noticeable position than the surrounding content.
On platforms with limited space (such as social media), the disclosure should appear within the immediately visible portion of the post, before any "read more" or "see more" truncation point.
Where content is presented in multiple formats (for example, a YouTube video with an accompanying text description), the disclosure should appear in each format.

Platform-Specific Rules

Social Media

Social media platforms present particular challenges for affiliate disclosure because of character limits, ephemeral content formats (such as Stories), and the informal tone of social media communication. Notwithstanding these challenges, the same disclosure obligations apply.

On platforms such as Instagram, Facebook, and TikTok, many platforms now offer built-in paid partnership labels and branded content tools. Where these tools are available, affiliates should use them; however, using a platform's built-in label does not necessarily satisfy all regulatory requirements if the label is not sufficiently clear or prominent. For example, Instagram's "Paid partnership" label may be displayed in small text that some consumers overlook, and regulators have indicated that additional disclosure in the caption or first line of text may be necessary.

On Twitter/X, where character limits apply, the ASA and FTC have both indicated that "Ad" or "#ad" at the beginning of a post is generally sufficient, provided it is not obscured by other hashtags or placed at the end of a lengthy thread.

Blogs and Websites

On blogs and websites, disclosures should appear at or near the top of the article or page, before the first affiliate link. A disclosure placed only in a site-wide footer, a separate disclosure policy page, or at the very bottom of the article is unlikely to meet regulatory expectations. The disclosure should be displayed in a manner that is consistent with the surrounding content - it should not be in a smaller font, a lighter colour, or otherwise formatted so as to reduce its visibility.

Where a website contains multiple articles with affiliate links, each individual article should contain its own disclosure. A general site-wide disclosure is not a substitute for page-level disclosures.

Email Marketing

Where email newsletters or marketing emails contain affiliate links, the affiliate relationship should be disclosed within the email itself. The disclosure should appear before the first affiliate link in the email body. Relying on a disclosure in a linked webpage rather than in the email itself may not be sufficient, as the consumer may click the affiliate link before reaching the webpage disclosure.

YouTube and Video Content

YouTube provides a built-in "includes paid promotion" disclosure that appears as a brief overlay at the start of a video. While using this feature is recommended, the FTC and ASA have both indicated that it may not be sufficient on its own, as the overlay appears only briefly and can be missed by viewers who join after the first few seconds.

Best practice for video content is to include a verbal disclosure near the beginning of the video (ideally within the first 30 seconds), a text disclosure superimposed on the video or displayed in a persistent on-screen graphic, and a written disclosure in the video description, placed above the fold (that is, visible without clicking "show more").

Penalties for Non-Compliance

The consequences of failing to disclose affiliate relationships vary by jurisdiction but can be significant.

United Kingdom

Under the Consumer Protection from Unfair Trading Regulations 2008, breaches can result in criminal prosecution. Offences under the CPRs are punishable by a fine and/or imprisonment of up to two years. In practice, criminal prosecution for disclosure failures is uncommon; enforcement more typically takes the form of ASA rulings (which are published and can cause reputational damage), referrals to Trading Standards, and - for persistent non-compliance - referral to the CMA, which can seek court orders and undertakings.

The Digital Markets, Competition and Consumers Act 2024, which received Royal Assent in May 2024, introduces direct enforcement powers for the CMA. Once the relevant provisions are brought into force, the CMA will be able to impose fines of up to 10% of global annual turnover for breaches of consumer protection law, including the CPRs. This represents a significant increase in the potential financial exposure for businesses that fail to ensure compliance with disclosure requirements.

European Union

Penalties for breach of the UCPD are determined by individual Member States. The Omnibus Directive (Directive (EU) 2019/2161), which amended the UCPD, introduced a harmonised penalty framework providing for fines of at least 4% of the trader's annual turnover in the relevant Member State, or at least EUR 2 million where turnover information is not available. Member States may impose higher penalties under their national laws.

United States

The FTC can seek various remedies for violations of the FTC Act, including cease and desist orders, civil penalties (which can be substantial for repeated or knowing violations), consumer redress, and disgorgement of profits. Under the revised Endorsement Guides, the FTC has emphasised that both endorsers and advertisers can be held liable for inadequate disclosures. Civil penalties for violations of FTC orders can be up to $50,120 per violation (as adjusted for inflation), and in cases involving widespread consumer harm, the aggregate penalties can be very significant.

Best Practices for Affiliates and Merchants

For Affiliates

Include a clear, conspicuous disclosure at the beginning of every piece of content that contains affiliate links or is otherwise commercially motivated.
Use plain language that an average consumer will understand. Avoid abbreviations, jargon, or vague expressions.
Ensure disclosures are visible on all devices and in all formats in which the content may be viewed, including mobile devices.
Do not rely solely on platform-provided tools (such as Instagram's paid partnership label or YouTube's paid promotion overlay) - supplement these with your own clear disclosures.
Review and update disclosures regularly to reflect changes in the law and regulatory guidance.
Maintain records of your affiliate relationships and the disclosures you have made, in case you need to demonstrate compliance to a regulator.

For Merchants

Include clear disclosure requirements in your affiliate programme terms and conditions, specifying the language and format of disclosures you expect affiliates to use.
Monitor your affiliates' content to verify that adequate disclosures are being made. Regulators have held merchants liable for affiliates' non-compliance, so a hands-off approach to monitoring is not advisable.
Provide affiliates with model disclosure language and guidance on where and how to place disclosures.
Take prompt action - including termination of the affiliate relationship - where an affiliate repeatedly fails to comply with disclosure requirements.
Consider conducting periodic audits of affiliate content across key channels, including social media, blogs, email, and video platforms.

Emerging Trends: AI-Generated Content and Disclosures

The use of artificial intelligence to generate marketing content, including affiliate content, introduces additional regulatory considerations. Where AI is used to produce product reviews, recommendations, or other content that contains affiliate links, the same disclosure obligations apply: the commercial relationship must be disclosed clearly and conspicuously.

Several jurisdictions are also considering or implementing requirements to disclose the use of AI in generating commercial content. The EU AI Act (Regulation (EU) 2024/1689), which entered into force in August 2024, includes transparency obligations for certain AI systems, including those that generate or manipulate text or images. While the AI Act's primary focus is on AI system providers and deployers rather than on individual content creators, the broader regulatory trend towards AI transparency is relevant to affiliate marketers who use AI tools to produce content at scale.

The FTC has also indicated that the use of AI to generate fake reviews or endorsements is likely to constitute a deceptive practice under the FTC Act. In 2023, the FTC proposed a rule to prohibit fake reviews and testimonials, including those generated by AI. Affiliates and merchants should be aware that AI-generated content that purports to reflect a genuine human opinion, but does not, may attract enforcement action regardless of whether the affiliate relationship is disclosed.

As AI-generated content becomes more prevalent in digital marketing, it is likely that regulators will issue further guidance on disclosure obligations specific to AI-produced affiliate content. Affiliates and merchants should monitor developments in this area and adapt their compliance practices accordingly.

Conclusion

Affiliate marketing disclosure requirements are well established across the UK, EU, and United States. The core principle is consistent across all three jurisdictions: where a publisher has a financial incentive to recommend a product or service, that incentive must be disclosed to consumers in a clear, conspicuous, and timely manner.

For affiliates, compliance means integrating effective disclosures into every item of content that contains affiliate links, across every platform and format. For merchants, compliance means not only meeting their own disclosure obligations but also monitoring and enforcing compliance within their affiliate programmes.

As regulatory scrutiny of digital marketing continues to increase - and as new legislation such as the Digital Markets, Competition and Consumers Act 2024 introduces stronger enforcement powers - the commercial and legal risks of non-compliance are growing. Businesses involved in affiliate marketing should review their disclosure practices regularly and seek legal advice where appropriate.

Affiliate Marketing Laws: Disclosure Requirements & Compliance