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Instagram Adds “Paid Partnership” Tags to Placate FTC

Celebrity endorsements are a clear-cut way to ensure a product’s increase in traffic, but Instagram has been in some hot water after the Federal Trade Commission (FTC) warned Instagram users last month about disclosing sponsorships of products. Now, the social media platform makes it easier for influencers to establish a partnership with a brand or company.

Instagram announced it will roll out a new “Paid Partnership” sub-header on paid sponsorships’ posts and stories in an effort to increase transparency between businesses, influencers and followers.

The new feature will also allow the creator of the post to easily and quickly tag the business in the subheader. As an added bonus for businesses, when the tool is used both parties have access to the post’s insights.

As of now, the “Paid Partnership” tool will only be available to select companies and influencers, as Instagram learns how the community interacts with the tool. The tool will be widely available in the coming months along with an official policy and enforcement guidelines.