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Social media agencies produce content, manage communities, buy paid social and run creator partnerships. Of all the marketing disciplines, this is the one with the most specific federal rulebook attached, because the FTC's Endorsement Guides speak directly to what happens when somebody is paid, gifted or incentivised to say something nice in public.

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The core rule is simple to state and easy to break: if there is a connection between an endorser and a brand that a significant minority of consumers would not expect, and it would affect how they weigh the endorsement, it has to be disclosed clearly and conspicuously. That covers payment, free product, affiliate commissions, family ties and employment. The Guides were revised in 2023, including a new definition of clear and conspicuous.

Responsibility is shared. Brands are expected to train and monitor the creators they pay, and the FTC's guidance says intermediaries who pay and direct influencers need reasonable programmes to do the same. The agency is not a shield, and neither is a platform's built-in paid partnership label.

Organic content, community management, paid social and creators

  • Content production: a calendar of posts, short video and graphics, usually with a monthly volume in the contract.
  • Community management: replying, moderating and escalating, which needs response-time commitments to be meaningful.
  • Paid social: audience buying and creative testing, billed separately from organic work.
  • Creator and influencer programmes: sourcing, briefing, contracting and monitoring people who post about you.
  • Employee advocacy: getting staff to post, which carries its own disclosure duties.
  • Social listening and reporting, including how complaints get routed to someone who can fix them.

FTC disclosure rules for sponsored posts and creators

A disclosure has to be where people will see it, in language they understand. The FTC's guidance for influencers says to put it at the start of a post rather than behind a more link, to superimpose text on video and say it aloud where the endorsement is both spoken and shown, and to repeat it periodically during a live stream. Plain words work: advertisement, ad, sponsored. Abbreviations like sp or vague terms like collab do not.

The Guides also rule out several things agencies are routinely asked to do. Hashtags buried in a block of other hashtags are not a disclosure. A brand tag on its own is not a disclosure. A bio or profile note is not a disclosure, because someone seeing a single post never sees the profile. And creators should not endorse products they have not used or make claims that would require evidence, such as health or treatment claims.

Who is responsible: brand, agency and creator

The FTC expects advertisers to give endorsers specific instructions on what they may claim and how to disclose, to pre-approve posts where practical, to monitor what is being published, and to act when something is wrong. Agencies that pay and direct creators are told to have reasonable training and monitoring programmes of their own. Creators carry their own responsibility for accuracy and disclosure, everywhere they endorse the product and not only on the platform that paid them.

Build that into the programme rather than the contract alone. A workable setup is a written brief listing the permitted claims, a required disclosure format, an approval step before posting, a monthly spot check of live posts, and a named person who takes posts down. Employees posting about their employer must disclose the relationship too, even when their job is listed on their profile.

Contests, sweepstakes and user-generated content

  • Entries posted by people in a contest should say so: the FTC's example is that a hashtag naming the sweepstakes is clearer than one that just praises the brand.
  • Full rules, eligibility and how a winner is chosen belong somewhere linkable, not only in the caption.
  • State laws differ on prize promotions, and some categories and states have registration or bonding requirements.
  • Reposting a customer's content needs their permission, and a comment asking to share is weak evidence of it.
  • If a prize or discount was given for a post, that connection is disclosable the same as any payment.
  • Anything aimed at children under 13 pulls COPPA into scope, including data collected through plug-ins and ad tools on a child-directed account.

Reviews, comments and what you cannot do with negative feedback

Social accounts collect reviews whether or not you ask for them, and the FTC's guidance on featuring customer reviews sets out what is off limits. Do not solicit reviews only from customers you expect to be happy. Do not condition an incentive, openly or by implication, on the review being positive. Do not discourage or block negative feedback, and do not treat negative and positive reviews differently when publishing them.

Asking an unhappy customer to change or delete a negative review after you resolve the problem can itself mislead readers. The safer path is to reply in public, fix the issue, and let the customer update the review if they choose to. If you display reviews on your own site, be transparent about how they are collected, moderated and averaged, and have a process for spotting fake ones.

Calendars, approvals and who speaks in a crisis

  • A monthly calendar approved in advance, with a named approver and a deadline for feedback.
  • A tone and claims guide, so the person writing captions knows what is off limits.
  • Response time commitments for comments and direct messages, split by ordinary and urgent.
  • An escalation path naming who is called when a post goes wrong, and who can delete or pause.
  • A scheduled pause procedure for paid and scheduled posts during a public incident.
  • A record of published posts and their disclosures, kept where you can retrieve it.

Account ownership, roles and the handover problem

Social accounts are routinely created by whoever set them up first, which is how businesses end up locked out of their own audience. Pages and business profiles should sit in a business account owned by the company, with the agency added as a user at the lowest level that lets them work. Recovering an account from a former contractor is slow and sometimes impossible.

The same applies to what is produced. Photography, video, graphics and captions are copyrightable, and the agreement should assign them to you once paid, with any stock or music licences named. Creator agreements are separate: they should state where the content may be used, for how long, and whether you may run it as a paid ad, because reposting a creator's video as an advertisement without that right is a common and expensive mistake.

Social Media Agencies: frequently asked questions

Is a paid partnership label on the platform enough?

The FTC's position is that responsibility for a clear and conspicuous disclosure rests with the influencer and the brand, not the platform. Built-in tools can help, but they are placed and styled by the platform and can be easy to miss. The safer practice is a plain disclosure in the creator's own words at the start of the post, in addition to whatever tool the platform provides.

Do we have to disclose free product if we never asked for a post?

If someone receives a free or discounted product and then posts about it, the connection is the kind a reader would not expect and would care about, so it should be disclosed. That is true even where no post was requested. Tell recipients clearly, in writing, what you expect them to disclose when they gift product.

Do employees have to disclose when they post about us?

Yes. The FTC's guidance says an employment relationship should be disclosed even where a profile makes the employer obvious, because someone seeing a single post or review does not see the profile. This applies to review sites as much as to social feeds. Give staff a short, written rule they can follow.

Can we delete negative comments and reviews?

Moderating for abuse, spam or illegal content is ordinary housekeeping and should follow a written policy applied consistently. Removing criticism because it is criticism is the problem, and the FTC's guidance treats selectively suppressing or delaying negative feedback as misleading. Asking a customer to take down a negative review after you fix the issue falls in the same area.

What should a creator contract cover?

The required disclosure wording and placement, the claims the creator may and may not make, approval before posting, where else the content may be used, whether you can run it as paid advertising, how long those rights last, and what happens if a post breaches the brief. Add a right to require removal, because that is the remedy you will actually need.

Sources

  1. FTC — The FTC's Endorsement Guides: What People Are Asking
  2. FTC — Disclosures 101 for Social Media Influencers
  3. FTC — Featuring Online Customer Reviews: A Guide for Platforms
  4. FTC — Complying with COPPA: Frequently Asked Questions

Written by the LokalMatch editorial team. Last reviewed September 22, 2026. How we write and check our guides

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What affects the fees social media agencies charge

Fees depend on the work involved and how the professional bills. We only publish fee ranges when they’re backed by real LokalMatch data or reliable sources. Until then, here’s what usually changes the fee:

  • Scope and complexity of the work
  • How the firm bills: hourly, per project or on a monthly retainer
  • Experience of the team
  • Timeline and how urgent the work is
  • Ongoing support after the work is delivered

How to compare social media agencies before you hire

  • Ask for examples of similar work for clients like you.
  • Read reviews and ask for references you can contact.
  • Make sure the scope, deliverables and timeline are written down before work starts.
  • Ask who will do the work: an in-house team, freelancers or subcontractors.
  • Compare two or three proposals before you decide.

Questions to ask social media agencies before you hire

  • Have you done work like this before, and can I see examples?
  • Who will work on this, and who is my main contact?
  • How do you charge: hourly, per project or monthly?
  • What is included, and what costs extra?
  • How long is the contract, and how can either side end it?
  • How will you report on progress?
  • Who owns the work, files and accounts you set up for me?

Licences and registration

This kind of work is often limited to licensed or registered professionals, and the rules depend on where you are. Ask which body they’re registered with, and check their status on that body’s public register before you hire.

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