Affiliate marketing is one of the best ways to earn passive income. However, if you promote products for a commission without properly instructing your audience, you are breaking the law.
The Federal Trade Commission (FTC) has tightened rules in 2026. Here is how to keep your online business legal.
1. Clear and Conspicuous
Your disclosure must be impossible to miss. Putting a tiny "Affiliate Links" text at the very bottom of your website footer is illegal. The disclosure must be placed before the consumer clicks the link, typically at the top of the blog post or right next to the link.
2. Simple Language is Required
Avoid legal jargon. The FTC requires disclosures to be easily understood by the average person.
Good Example: "If you buy through links on this page, I may earn a small commission at no extra cost to you."
3. Social Media Rules
If you post a TikTok or Instagram Reel, using the hashtag #ad or #sponsored is mandatory. Putting the hashtag in a sea of 30 other tags where it is hidden is a violation. It must be visible without the user having to click "Read More".