# AI influencer brand deals: how to disclose a paid post

AI influencer brand deals need an ad label and an AI label. What the FTC, the UK's ASA, EU consumer law and France want from you, and where each label goes.

- Canonical: https://aiofmcity.com/blog/ai-influencer-brand-deals-disclosure
- Topic: EU compliance (https://aiofmcity.com/topics/eu-compliance)
- Author: Gus
- Published: 2026-10-27

---
## Key points

- A sponsored post by an AI persona needs two labels: one that says it is advertising, and one that says it is AI-generated.
- The UK's ASA counts a virtually produced persona as an influencer and prefers an "Ad" label at the start of the post.
- In the US you must disclose a paid or gifted connection clearly and conspicuously. Since 9 June 2026, a New York ad must also say that it shows a synthetic performer.
- France requires "Images virtuelles" on AI-generated images of a face or silhouette in influencer content.
- Gifts and affiliate commissions count as paid. It does not have to be cash.

---
A brand deal done by an AI influencer needs two labels. The AI label tells people how the content was made. The ad label tells them someone paid for it. Every rule below treats these as two separate questions. If your persona has the AI label but no ad label, the job is only half done.

[Are AI influencers legal](https://aiofmcity.com/blog/are-ai-influencers-legal) covers whether you may run a persona and how to label it in each country. This article is about what you have to do when the persona gets paid.

## Ad label rules by market

| Where | The ad disclosure | Where it goes | What AI adds |
| --- | --- | --- | --- |
| United Kingdom (ASA) | "Ad" preferred; a platform tool may be enough | Upfront, at the beginning | The persona counts as an influencer |
| United States (FTC) | Clear and conspicuous; no set wording | With the endorsement | Nothing specific in the Guides |
| New York (GBL § 396-b) | The FTC rule applies | In the ad itself | A conspicuous note that the ad has a synthetic performer, since 9 June 2026 |
| European Union | Advertising must be disclosed | Set by each country's rules | The EU AI Act label, separately |
| France | The EU rule applies | Set by the influencer law | « Images virtuelles » on AI images of a face or silhouette |
| YouTube | The paid promotion setting | A label at the start of the video | The altered or synthetic setting, separately |

The source for each row is below.

## United Kingdom: the ASA counts a virtual persona as an influencer

> The ASA's definition of an influencer includes a "virtually produced persona". "The ASA (and the CMA) prefer labels that explicitly call out the content as 'advertising' e.g., 'Ad'", and "at a minimum, the ASA is likely to expect such content to include a prominent 'ad' label upfront (which usually means 'at the beginning')". A platform tool that labels branded content "may be sufficient if the label is upfront, clear, and prominent"; if in doubt, an additional "Ad" label is advised. Influencers using affiliate links "are acting as an advertiser since they are earning commission based on the interest they generate."
>
> — Source: ASA — Recognising ads: social media and influencer marketing, read 2026-09-15 — https://www.asa.org.uk/advice-online/recognising-ads-social-media.html

These are the most specific rules for a persona, and they answer the question people ask most. A generated persona still has to follow the advertising rules for influencers. The rules also end a common habit: putting "#ad" at the end of a block of hashtags. That is not upfront.

## United States: the FTC rules for paid posts

> "An 'endorsement' means any advertising, marketing, or promotional message for a product that consumers are likely to believe reflects the opinions, beliefs, findings, or experiences of a party other than the sponsoring advertiser". The party whose opinions the message appears to reflect is the endorser and "could be or appear to be an individual, group, or institution."
>
> — Source: Cornell LII — 16 CFR 255.0, read 2026-09-15 — https://www.law.cornell.edu/cfr/text/16/255.0

> "When there exists a connection between the endorser and the seller of the advertised product that might materially affect the weight or credibility of the endorsement, and that connection is not reasonably expected by the audience, such connection must be disclosed clearly and conspicuously." In one of the section's examples, an influencer sent a free product "should clearly and conspicuously disclose receiving it for free, a fact that could affect the credibility that viewers attach to the endorsements."
>
> — Source: Cornell LII — 16 CFR 255.5, read 2026-09-15 — https://www.law.cornell.edu/cfr/text/16/255.5

> The Federal Trade Commission's updated Endorsement Guides changed the definition of "endorsements" to clarify the extent to which it includes fake reviews, virtual influencers, and tags in social media, and added specific guidance for influencers on when and how to disclose material connections.
>
> — Source: FTC — Updated Endorsement Guides (June 2023), read 2023-06-29 — https://www.ftc.gov/news-events/news/press-releases/2023/06/federal-trade-commission-announces-updated-advertising-guides-combat-deceptive-reviews-endorsements

A persona "appears to be an individual", and people read a paid post as that individual's opinion. That makes the persona an endorser. The payment or the free product is the connection, and you have to disclose it clearly and conspicuously. The Guides set a standard but do not give an exact word. For that reason the checklist below uses the UK's "Ad".

## New York: ads with a synthetic performer need their own label

Since 9 June 2026, an ad in New York that shows an AI-generated person has to say so. This is the first US law written for exactly what a persona is in a brand deal: a generated human who is not a real, recognisable performer.

> A "Synthetic performer" is "a digitally created asset created, reproduced, or modified by computer, using generative artificial intelligence or a software algorithm, that is intended to create the impression that the asset is engaging in an audiovisual and/or visual performance of a human performer who is not recognizable as any identifiable natural performer." "Any person engaged in the business of dealing in any property or service who for any commercial purpose produces or creates an advertisement respecting any such property or service, in any medium or media in which such advertisement appears, shall conspicuously disclose in such advertisement that a synthetic performer is in such advertisement, where such person has actual knowledge." The civil penalty is "one thousand dollars for a first violation, and five thousand dollars for any subsequent violation." Audio ads, AI used "solely" to translate a human performer, and ads for expressive works such as films and games are excluded, and the media that publish the ad are not liable.
>
> — Source: NY Senate — General Business Law § 396-b, read 2026-10-05 — https://www.nysenate.gov/legislation/laws/GBS/396-B

> The bill was signed by the Governor on December 11, 2025 as chapter 617. "This act shall take effect on the one hundred eightieth day after it shall have become a law."
>
> — Source: NY Senate — Bill S8420A (2025), read 2026-10-05 — https://www.nysenate.gov/legislation/bills/2025/S8420/amendment/A

The 180th day after 11 December 2025 is 9 June 2026. The definition fits an AI persona closely: generated, made to look like a human, and not a real person anyone could recognise. A deepfake of a real person is not a synthetic performer under this text. The section says it does not change the rights people have under sections 50, 50-f and 51 of New York's civil rights law, which protect a real person's name and likeness.

The duty sits with whoever "produces or creates" the ad for a business that sells the product. In a brand deal that can be the brand, and it can be you, because you made the post. The law also asks for "actual knowledge", and you always know your persona is generated. Agree in writing who adds the note, and add it yourself anyway.

Three points the law does not settle. It does not give a wording, only "conspicuously". It does not say whether an AI label set in the platform counts. And it does not say how far it reaches outside New York. Put a plain line in the ad itself, such as "This ad features an AI-generated person", next to "Ad". This describes the published text. It is not legal advice.

## European Union and France

> The Commission describes influencers who advertise or sell products regularly as traders under European law, and states that "European consumer law already states that advertising (including brand partnerships on social media, when you create content in exchange for products or services, or affiliate marketing) must be disclosed."
>
> — Source: European Commission — Influencer Legal Hub, read 2026-09-15 — https://commission.europa.eu/topics/consumers/consumer-rights-and-complaints/influencer-legal-hub_en

> Article 5 of France's influencer law of 9 June 2023 requires content that includes images produced "par tous procédés d'intelligence artificielle visant à représenter un visage ou une silhouette" to carry the mention « Images virtuelles », and in the version published in 2023 that mention had to be clear, legible and identifiable on the image or video throughout the viewing. The article was later amended by Ordonnance n° 2024-978 of 6 November 2024.
>
> — Source: Légifrance — Loi n° 2023-451, article 5, read 2026-09-15 — https://www.legifrance.gouv.fr/jorf/article_jo/JORFARTI000047663211

France is the only market in this article with a rule written for AI images in influencer content. New York's rule covers AI-generated people in any ad. A platform's AI label or an English caption does not meet it. Article 5 has been amended since it was published. Read the consolidated version on Légifrance for the current wording on placement before you build a template around it. The EU AI Act has its own labelling rule on top of all of this. [The EU compliance guide](https://aiofmcity.com/guides/eu-compliance-for-ai-personas) covers it.

## Platform settings for paid posts

> "If you feature branded content, sponsorships, endorsements, or other commercial relationships in your videos, you have to let YouTube know." Selecting the paid promotion setting "adds a disclosure label that appears at the beginning of your video."
>
> — Source: YouTube Help — Paid product placements, sponsorships & endorsements, read 2026-09-15 — https://support.google.com/youtube/answer/154235

This setting is separate from YouTube's AI setting, which [AI influencer YouTube channel](https://aiofmcity.com/blog/ai-influencer-youtube-channel) covers. Instagram works the same way: the paid partnership label and the AI-generated profile label are two different settings. Setting one does not set the other.

### What the sources do not say: Finding one label wording that works in every market

It would be easier if this article ended with one label you can copy. No such label exists.

The ASA prefers "Ad" and wants it at the beginning. The FTC requires a clear and conspicuous disclosure and does not set a word. France adds French wording that you must use for AI images of a face or silhouette. YouTube's setting adds its own label. A hashtag at the end of a caption fails the ASA's placement rule, and an English "Ad" does not replace the French wording.

You need several labels together. The checklist below lists them.

## Checklist for a paid post in every market listed here

1. **Turn on the platform's paid promotion or paid partnership setting.**
2. **Start the caption with "Ad"**, before anything that could be cut off behind "see more".
3. **Keep the AI label as well**: the AI-generated profile label on Instagram, the altered or synthetic setting on YouTube.
4. **Add « Images virtuelles » on the image** if your audience includes France.
5. **Say in the ad that it shows an AI-generated person** if it can reach New York.
6. **Treat gifts and affiliate commissions as paid.**
7. **Do not let the persona claim results the product cannot deliver.** An ad label does not fix a misleading claim about the product.

The ad label and the AI label are two separate settings, and a paid post needs both. On Instagram the AI label is [the AI-generated profile label](https://aiofmcity.com/blog/instagram-ai-generated-profile-label). If the brand's audience is in a market not listed above, start with [are AI influencers legal](https://aiofmcity.com/blog/are-ai-influencers-legal). It sets out the basic rules for the US, the EU, the UK and India.

## Frequently asked

### Do AI influencers have to disclose sponsored posts?

Yes, the same way human influencers do. The UK's ASA includes a virtually produced persona in its definition of an influencer. The FTC's Endorsement Guides cover any endorser whose opinions an ad appears to reflect. EU consumer law says brand partnerships and affiliate marketing must be disclosed.

### Is the AI label enough for a sponsored post?

No. An AI label says how the content was made. An ad label says someone paid for it. A paid post by a generated persona needs both.

### What label should an AI influencer use for an ad?

In the UK the ASA prefers "Ad" at the start. A platform's paid partnership tool may be enough if it is upfront, clear and prominent. In the US the disclosure has to be clear and conspicuous, but no exact word is set. France also requires the words "Images virtuelles" on AI images of a face or silhouette in influencer content.

### Do gifts and affiliate links count as advertising?

Yes. The FTC's Guides give a free product as a connection you have to disclose. The ASA treats an influencer who earns commission on affiliate links as acting as an advertiser.

### Does New York require a label on ads with an AI influencer?

Yes, since 9 June 2026. Section 396-b of New York's General Business Law says an ad must conspicuously disclose that it contains a synthetic performer, meaning a generated human who is not a recognisable real performer. The penalty is $1,000 for a first violation and $5,000 for each one after.