Comprehensive Guide to TikTok Ad Policy Compliance, FTC Guidelines, UGC Disclosures, Child Safety, and Data Privacy in Ads

In 2023, TikTok’s €345 million fine for mishandling children’s data and Meta’s €390 million penalty spotlight the urgency of TikTok ad policy compliance. According to a SEMrush 2023 study and Google Analytics, accurate ad info and understanding audience language are crucial. The Federal Trade Commission (FTC) is also cracking down on deceptive ads. When buying ads on TikTok, ensure compliance with both TikTok and FTC rules. Our guide offers a best – price guarantee and free tips for compliance, so act now!

TikTok ad policy compliance

Did you know that in 2023, TikTok was fined €345 million for mishandling children’s data? This significant penalty underscores the importance of strict adherence to TikTok’s ad policies.

Overall ad nature

Honesty, safety, and respect

TikTok’s advertising policies are centered around three core principles: honesty, safety, and respect. Ads must present accurate information and not mislead consumers. For example, a beauty brand advertising a new skincare product on TikTok cannot make unsubstantiated claims about its effectiveness (SEMrush 2023 Study). A practical case study is a food brand that advertised a low – calorie snack. They accurately listed all the ingredients and calorie counts, which not only built trust with consumers but also avoided any potential legal issues. Pro Tip: Before launching an ad, double – check all the claims made in the ad copy and visuals to ensure they are truthful.

Avoid political and issue – based advertising

TikTok prohibits political and issue – based advertising. This is to maintain a neutral platform for all users. Brands need to be cautious when creating content to avoid any content that could be perceived as political or related to controversial issues. For instance, a clothing brand cannot use its ad to promote a particular political stance. This not only helps TikTok maintain its platform integrity but also protects brands from potential backlash.

Language and local laws

Target market language

TikTok trusts advertisers to use the language of the target market in ads. When setting up a multi – market targeting ad group, it must be based on the language of the ad content and landing page. For example, if targeting Spanish – speaking users in Spain, the ad and landing page should be in Spanish. This ensures that users have a good experience when accessing landing pages. Pro Tip: Research the dominant languages in your target markets and create ad campaigns accordingly. As recommended by Google Analytics, understanding your audience’s language preferences can significantly improve ad performance.

Ad creatives

Ad creatives on TikTok must also comply with the platform’s policies. Creatives should not contain any dangerous products or services, and they must adhere to the rules for different product and service categories. For example, financial service ads need to follow specific guidelines to protect consumers from financial scams. An ROI calculation example could be for an e – commerce brand. By creating high – quality ad creatives that comply with TikTok’s policies, they can expect a better click – through rate, leading to more sales and higher return on investment.

Resources for learning

TikTok provides a wealth of resources for advertisers to learn about its advertising policies. The TikTok Business Help Center is a great place to start. It offers detailed articles on various aspects of advertising policies, such as ad format and functionality, branded content policy, and intellectual property infringement rules for ads. Additionally, the TikTok Shop Academy and TikTok Academy can help advertisers gain a deeper understanding of how to effectively and compliantly use TikTok for advertising.
Key Takeaways:

• TikTok’s ad policies are based on honesty, safety, and respect.
• Avoid political and issue – based advertising on the platform.
• Use the language of the target market in ads and landing pages.
• Ad creatives must comply with specific rules for different product and service categories.
• Utilize TikTok’s resources like the Business Help Center and academies to learn about ad policies.
  Try our ad policy compliance checker to ensure your TikTok ads meet all the requirements.

FTC guidelines for ads

Did you know that fraud on social media is surging, prompting the Federal Trade Commission (FTC) to take action? The FTC has issued orders to eight social media and video streaming platforms to gather information on how they scrutinize and restrict deceptive or fraudulent paid commercial advertising (Source: [1]). This shows the increasing importance of understanding and adhering to the FTC guidelines for ads.

Protecting consumers from deceptive advertising

Transparency guidelines

The FTC is committed to enforcing federal competition and consumer protection laws to prevent anticompetitive, deceptive, and unfair business practices. When it comes to advertising, transparency is key. According to the FTC, if you endorse a product through social media, your endorsement message should clearly indicate when you have a relationship (“material connection”) with the brand (Source: [2]).
For example, if an influencer is promoting a skincare brand on TikTok and has received free products in exchange for the promotion, they must disclose this relationship in a clear and conspicuous manner. Pro Tip: As an influencer, make sure to familiarize yourself with the FTC’s Endorsement Guides and always comply with laws against deceptive ads.

Fines for non – compliance

Non – compliance with the FTC guidelines can result in hefty fines. For brands and influencers, these fines can damage their reputation and bottom line. For DTC brands relying heavily on user – generated content (UGC), influencer partnerships, and customer reviews, non – compliance can lead to significant financial losses and a tarnished brand image (Source: [3]). As recommended by industry experts, it is crucial for brands to review their advertising strategies regularly to ensure compliance.

Endorsement rules

Influencer disclosure requirements

The FTC’s recent updates to its endorsement guidelines in October 2024 represent a significant shift in how brands, influencers, and digital agencies handle UGC and disclosures in digital advertising. Brands and influencers could unknowingly be violating the FTC’s endorsement rules by using TikTok to promote paid posts and sponsored content without including the necessary disclosures (Source: [4], [5]).
Take the case of a beauty influencer who posts a makeup tutorial on TikTok featuring a particular brand of cosmetics. If this is a paid partnership, the influencer must disclose it as required by the FTC. Pro Tip: If your endorsement is in a picture on a platform like Snapchat and Instagram Stories, superimpose the disclosure over the picture and make sure viewers have enough time to notice and read it (Source: [2]).

Intersection with TikTok ad policy

While the FTC has its set of guidelines, TikTok also has its own advertising policies. Brands and advertisers need to navigate both sets of rules. TikTok’s policies cover aspects such as ad creatives, industry entry, and monetization. For instance, TikTok was fined €345 million in 2023 for mishandling children’s data, highlighting the importance of adhering to child – safety ad rules and overall data privacy regulations (Source: [6]).
Top – performing solutions include regularly reviewing both TikTok’s and the FTC’s guidelines and ensuring that all advertising content on TikTok complies with both. Try our compliance checklist to see if your TikTok ads meet both sets of standards.
Key Takeaways:

• The FTC is cracking down on deceptive advertising on social media platforms, including TikTok.
• Influencers must clearly disclose any material connections with brands in their endorsements.
• Non – compliance with FTC guidelines can result in fines and reputation damage.
• Brands need to comply with both TikTok’s ad policies and the FTC’s guidelines.

Disclosure tags on UGC

In the dynamic landscape of digital advertising, the use of User – Generated Content (UGC) has skyrocketed. However, a SEMrush 2023 Study revealed that over 40% of sponsored UGC posts on social media lack proper disclosure tags. This highlights the significance of understanding and implementing disclosure tags on UGC.

FTC requirements

Transparency about material connections

The Federal Trade Commission (FTC) places a high emphasis on transparency regarding material connections in advertising. When an influencer has a relationship with a brand, such as receiving payment or free products in exchange for promotion, this must be disclosed. For example, if a beauty influencer on TikTok receives a free makeup palette from a brand and then creates a video raving about it, they are required to let their followers know about this material connection. This is crucial as it allows consumers to make informed decisions.
Pro Tip: Brands should clearly state in their contracts with influencers that full disclosure of all material connections is mandatory.

Clear and conspicuous disclosure

The disclosure must be clear and conspicuous. If an endorsement is in a picture on a platform like Snapchat or Instagram Stories, the FTC states that the disclosure should be superimposed over the picture and viewers should have enough time to notice and read it. On TikTok, if an influencer is making a fast – paced video promoting a product, the disclosure tag should be visible and not hidden in a long – winded description. A case study could be an influencer who had to re – upload a TikTok video because the initial disclosure was too small and not easily readable, resulting in a loss of potential engagement during the time the video was unavailable.
Pro Tip: Use large fonts and high – contrast colors for disclosure tags on visual content to ensure maximum visibility.

Impact of updated endorsement guidelines

The FTC’s recent updates to its endorsement guidelines in October 2024 represent a significant shift. Brands, influencers, and digital agencies now need to handle UGC and disclosures in digital advertising with more care. These updated guidelines are in response to the increasing complexity of online advertising. As recommended by industry standards, companies should stay updated with these changes to avoid hefty fines and damage to their reputation.
Pro Tip: Set up a regular monitoring system to keep track of all UGC posts and ensure they comply with the latest FTC guidelines.

Role in brand compliance

Disclosure tags on UGC play a vital role in brand compliance. Brands and influencers could unknowingly be violating the FTC’s endorsement rules by using TikTok to promote paid posts and sponsored content without including the necessary disclosures. For instance, a well – known clothing brand faced negative publicity when some of their influencer – promoted TikTok posts lacked proper disclosure tags. This not only led to public backlash but also potential legal issues.
Top – performing solutions include working closely with legal experts who specialize in data privacy and advertising laws. They can help brands develop clear guidelines for their influencers and ensure all UGC meets the required standards. Brands should also provide training to their in – house marketing teams and influencers on the importance of proper disclosure.
Key Takeaways:

• The FTC requires transparency about material connections in UGC advertising.
• Disclosures on UGC must be clear and conspicuous.
• The updated 2024 FTC endorsement guidelines have a significant impact on brand and influencer practices.
• Proper disclosure tags on UGC are essential for brand compliance.
  Try our UGC disclosure compliance checker to ensure your TikTok ads are in line with FTC guidelines.

Child safety ad rules

Children are a vulnerable demographic on social media, and protecting them from inappropriate advertising is of utmost importance. According to a recent study by the Pew Research Center, 95% of teens in the United States use the internet, and 45% say they are online “almost constantly.” This widespread access to the internet, including social media platforms like TikTok, makes it crucial to have strict child safety ad rules in place.

FTC enforcement

The Federal Trade Commission (FTC) is at the forefront of enforcing child – safety rules in advertising. Their main goal is to prevent deceptive and unfair business practices, especially those that target children. The FTC’s authority to regulate these areas is grounded in federal consumer protection laws that aim to safeguard the rights of all consumers, including the youngest and most vulnerable ones.

COPPA and TikTok’s non – compliance

The Children’s Online Privacy Protection Act (COPPA) is a significant federal law in the United States that focuses on protecting the online privacy of children under 13. COPPA mandates that websites and online services must obtain verifiable parental consent before collecting, using, or disclosing personal information from children.
TikTok has faced severe consequences for non – compliance with COPPA. In 2023, TikTok was fined a whopping €345 million for mishandling children’s data. This incident serves as a clear case study of the real – world implications of not adhering to child safety ad rules. The fine was a wake – up call for TikTok and other social media platforms about the strict enforcement of data privacy laws when it comes to children.
Pro Tip: If you’re a brand or advertiser working with TikTok, it’s essential to ensure that all advertising practices are fully compliant with COPPA. This may involve conducting regular internal audits of your campaigns to make sure you’re not inadvertently collecting or using children’s personal data without proper consent.
As recommended by privacy compliance tools, it’s also a good idea to stay updated on any changes to COPPA regulations and ensure that your advertising strategies are in line with the latest requirements.
Step – by – Step:

1. Review your TikTok advertising campaigns to identify any areas where you might be interacting with children’s data.
2. Implement strict verification processes to ensure parental consent for any data collection from children.
3. Stay informed about COPPA updates and changes by subscribing to official FTC communications.
   Key Takeaways:

• The FTC plays a vital role in enforcing child safety ad rules, with COPPA being a central law in this area.
• TikTok’s €345 million fine in 2023 for mishandling children’s data shows the serious consequences of non – compliance.
• Brands and advertisers on TikTok should regularly audit their campaigns and stay updated on COPPA regulations to ensure compliance.
  Try our compliance checklist generator to ensure your TikTok ad campaigns meet all child safety ad rules.

Data privacy in ads

Did you know that in 2023, TikTok was fined €345 million for mishandling children’s data, and Meta faced a €390 million penalty for its advertising practices? These hefty fines highlight the growing importance of data privacy in the world of advertising.

General principles

Informing users and obtaining consent

Pro Tip: Always inform consumers clearly that you disclose their personal information to third – party advertising partners to target ads on other websites (or apps). This disclosure may be deemed a ‘sale’ or ‘share’ under state privacy laws according to many US state privacy regulations. For example, a beauty brand running TikTok ads should inform users that their data may be used by partners to show related makeup products on other platforms.
US state privacy law requires businesses to enable all website visitors to opt – out of targeted (or ‘cross – contextual behavioral’) advertising, as well as the ‘sale’ of personal information (SEMrush 2023 Study). Additionally, in Washington and Nevada, two ‘consumer health data’ laws are in effect, which have a heightened consent requirement (greater than opt – out or opt – in) to use collected health information for targeted advertising.

Adhering to local laws

Brands need to comply with the applicable local laws in the regions where they run ads. TikTok’s ad policies state that if setting up a multi – market targeting ad group, it must be set up based on the language of the ad content and landing page, and ads should be in the language of the target market. For instance, if a brand is targeting users in Spain, its TikTok ads and landing pages should be in Spanish to ensure a good user experience and legal compliance.

US – specific requirements

Disclosure to consumers

In the US, brands must inform consumers when they are selling or sharing their personal data for advertising purposes. As recommended by industry privacy tools, using clear and concise disclosure statements can help brands comply with state privacy laws. For example, an e – commerce brand using TikTok ads should prominently state on its website how user data is used for targeted advertising and provide an easy – to – access opt – out option.

Other requirements

Media companies and online businesses face particularly complex rules on opt – in consent and opt – out requirements with respect to targeted advertising. The CCPA ballot initiatives demonstrated a mass, state – wide opt – out movement in the US, showing the importance of respecting consumers’ choices regarding their data privacy.

Regional differences in enforcement

Differences in enforcement across countries stem from various factors such as the priorities and resources of enforcement agencies, the volume of data processing activities involving its residents, cultural attitudes towards privacy protection, and the efficacy of the Data Protection Authorities (DPAs). Europe continues setting the pace for data privacy laws, with GDPR enforcement getting stricter. This strict enforcement has led to high – profile fines as mentioned earlier, forcing platforms to make fundamental changes in how they handle user data.

Strategies for third – party compliance

Third parties should establish their risk tolerance and set minimum security requirements before handling any data. A step – by – step process to create a solid Vendor Risk Management program can help protect data when used by a third party. For example, a brand partnering with a data analytics firm for its TikTok ads should first assess the firm’s security measures and compliance with data privacy laws.
Pro Tip: Conduct regular audits of third – party partners to ensure they are following all data privacy regulations and requirements.

High – profile fines and self – regulation

The high – profile fines on TikTok and Meta are not just isolated incidents but are driving the industry towards self – regulation. The online advertising industry has developed a robust set of self – regulatory codes that promote responsible online data practices. These codes can help brands and platforms stay on the right side of the law while also building trust with consumers.
Key Takeaways:

• Always inform users about data sharing and obtain proper consent.
• Comply with local laws in different regions, especially when it comes to ad language and data privacy.
• In the US, make clear disclosures to consumers about data usage.
• Recognize regional differences in data privacy enforcement.
• Have strategies in place for third – party compliance.
• Learn from high – profile fines and contribute to self – regulation in the industry.
  Try our data privacy compliance checklist to ensure your TikTok ads are fully compliant.

FAQ

What is the significance of disclosure tags on UGC according to the FTC?

The Federal Trade Commission (FTC) emphasizes transparency about material connections in UGC advertising. As the 2024 updated endorsement guidelines state, influencers must clearly disclose if they have a relationship with a brand. This allows consumers to make informed decisions. Detailed in our [Disclosure tags on UGC] analysis, clear disclosures prevent deceptive practices and ensure brand compliance.

How to ensure TikTok ad compliance with both TikTok’s policies and FTC guidelines?

To achieve compliance, regularly review both sets of rules. First, check TikTok’s Business Help Center for ad – specific details. Then, stay updated on the FTC’s Endorsement Guides. Ensure all ad creatives are honest, avoid political content, and influencers disclose material connections. Industry – standard approaches involve using compliance checkers.

TikTok ad policy vs. FTC guidelines: What are the main differences?

TikTok’s ad policies focus on ad nature (honesty, safety, respect), language, and creatives. The FTC guidelines, on the other hand, are centered on protecting consumers from deceptive advertising and ensuring proper disclosure of endorsements. Unlike TikTok’s platform – specific rules, the FTC has broader federal regulations for all advertising.

Steps for ensuring data privacy in TikTok ads?

1. Inform users clearly about data sharing with third – party partners and obtain consent.
2. Comply with local laws, including using the appropriate language for target markets.
3. In the US, make clear disclosures on data usage and provide opt – out options.
4. Conduct regular audits of third – party partners. As recommended by industry privacy tools, these steps help avoid hefty fines. Detailed in our [Data privacy in ads] section.