A paid partnership is Instagram’s native disclosure tool that allows creators to transparently tag brand partnerships on their posts and stories. When you add a Paid Partnership label, a notice appears at the top of the post stating “Paid partnership with [brand name],” making it immediately clear to viewers that the content is sponsored. This feature helps creators comply with FTC disclosure requirements and builds trust with their audience by being upfront about brand relationships.
The Paid Partnership label serves two critical purposes: legal compliance and audience transparency. The FTC requires creators to disclose any material relationship with a brand—whether that’s payment, free products, or other compensation. Using this label makes that disclosure obvious and hard to miss. It also signals professionalism and legitimacy; audiences expect influencers to have sponsored partnerships, but they appreciate when those partnerships are clearly marked.
To add a Paid Partnership label, you tag the brand partner when creating your post or story. Instagram then automatically displays the disclosure label at the top of the post. The feature is available to creators who meet Instagram’s eligibility requirements, which typically include having a business or creator account and being in good standing. Once you’ve tagged the brand, the label appears for all viewers, making the sponsored nature of the content immediately visible.
Not entirely. While the label is a strong visual disclosure and Instagram’s recommended tool, the FTC suggests that creators should also use additional clear language in captions or video content. Simple terms like “#ad,” “#sponsored,” or “This is a paid partnership with [brand]” help reinforce the disclosure, especially for viewers who might miss the label or watch without sound. The Paid Partnership label is an excellent first step, but pairing it with explicit text makes your disclosure bulletproof.
The Paid Partnership label is Instagram’s official tool, whereas hashtags like #ad, #sponsored, or #partner are creator-written disclosures. Some creators use both—the label plus hashtags or caption text—to ensure maximum clarity. The key distinction is that the Paid Partnership label is platform-native and tamper-proof; it can’t be hidden or minimized. Hashtags, while helpful, can be buried in a long caption or overlooked, which is why the FTC emphasizes making disclosures “hard to miss.”
Any creator posting sponsored content should use the Paid Partnership label if they’re promoting on Instagram. This includes influencers, content creators, small business owners, and even celebrities. If you’re receiving payment, free products, discounts, affiliate commissions, or any other benefit in exchange for content featuring a brand, you’re required to disclose that relationship. Skipping the disclosure—or using vague terms like “thanks” or “collab”—can result in FTC penalties for both you and the brand.
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