Guide: law
Ad disclosure for UGCWhen a label is required
Whether a post has to be labelled as advertising depends on which account it appears on and whether anything was given in return. This article explains the legal basis and the typical cases for UGC. It is not legal advice.
In short
Anyone who receives money, products or anything else in return for a post must label it as advertising, at the start and clearly visible (§ 5a (4) UWG, § 6 DDG, § 22 MStV). An ad that a company runs from its own account is usually already recognisable as advertising through the platform’s label. If a creator posts a paid UGC video on her own account, she has to label it herself.
The legal basis
The duty to label comes from three laws that apply side by side.
| § 5a (4) UWG | Acting unfairly means failing to disclose the commercial purpose of a business practice, unless it is obvious from the circumstances. Where a practice benefits another company and no payment or similar consideration is given, there is usually no commercial purpose. |
| § 6 DDG | Commercial communication in digital services must be clearly recognisable as such, and the party on whose behalf it is made must be clearly identifiable. |
| § 22 MStV | Advertising in telemedia must be clearly recognisable as such and clearly separated from the rest of the content. |
| BGH, 9 September 2021 | In three cases (I ZR 90/20, I ZR 125/20, I ZR 126/20) the Federal Court of Justice ruled: posts for which something was given in return must be labelled. Without anything in return, tagging products on your own account is not automatically advertising, as long as the post is not excessively promotional. |
The German media authorities and the Wettbewerbszentrale publish guides that show how the regulators apply the rules in practice.
Company account and creator account
For UGC, what matters is which account publishes the video.
| Ad from your company account | Post on the creator’s account | |
|---|---|---|
| Who publishes? | your company | the creator, on behalf of your company |
| Is the advertising purpose recognisable? | usually yes, through the sender and a platform label such as “Sponsored” | no, to followers it looks like a private post |
| Label needed? | an additional label is usually not needed | yes, for example “Werbung” or “Anzeige” at the start and the platform’s paid partnership feature |
| Who is liable? | your company | the creator and, in some cases, your company as the client |
| Examples | UGC as an ad on Meta or TikTok | paid post, story, Partnership Ad, Spark Ad via the creator account |
Organic posts with UGC on your company account are recognisable as your own communication. Whether a performer is perceived as a customer is a question of misleading advertising, not of labelling.
How to label correctly
A label only does its job if it is visible immediately and without a click.
- Use clear terms such as “Werbung” or “Anzeige” (German for advertisement), not just “ad” or “sponsored by” without context.
- Put the label at the start: in the video right at the beginning and in the caption before it is expanded.
- In videos, keep the label visible while the video plays, if possible.
- Also use the platform’s paid partnership feature.
- Hashtags at the end of a long text are not enough.
- Products given for free can also count as something in return.
What this means for you as the client
As the client, you should require labelling in the contract when a creator publishes a paid video on their own account.
Companies can be jointly liable for posts by people acting on their behalf. The OLG Köln (Higher Regional Court of Cologne) confirmed this in 2025 for paid partnerships in the health sector (case no. I-6 U 118/24). When FNLY Social produces UGC for your ads, the videos usually appear via your account. For posts on creator accounts, we make labelling a binding requirement in the briefing.
Note
This article gives a general overview of the legal situation and is not legal advice. Sectors with their own advertising rules, such as health or food, have additional requirements.
Updated:
Sources
- § 5a UWG (gesetze-im-internet.de)
- § 6 DDG (gesetze-im-internet.de)
- Medienstaatsvertrag (Interstate Media Treaty), die medienanstalten
- BGH (Federal Court of Justice), press release of 9 September 2021 on I ZR 90/20, 125/20, 126/20
- Guide by the German media authorities: ad labelling in online media
- Wettbewerbszentrale
- Ferner Alsdorf: OLG Köln 6 U 118/24, influencers as agents of a company
FAQ
Frequently asked questions
Does a UGC video have to be labelled as advertising?
If it runs as an ad from your company account, it is usually already recognisable as advertising through the platform’s label. If a creator publishes the paid video on her own account, she has to label it.
Is the hashtag #ad enough?
The German media authorities recommend clear German terms such as “Werbung” or “Anzeige” at the start of the post. A hashtag at the end of a long text that only becomes visible after expanding it is usually not enough.
What did the BGH rule in 2021?
On 9 September 2021, the Federal Court of Justice ruled in three cases that posts made in return for something must be labelled as advertising. Without anything in return, tagging products on your own account does not automatically require a label, as long as the post is not excessively promotional.
Is a product sent for free something in return?
It can be, especially for higher-value products or when a post is expected. If in doubt, it is safer to label the post.
Is the company liable if the creator does not label the post?
Companies can be jointly liable for posts by people acting on their behalf, as the OLG Köln held in 2025 for paid partnerships. That is why labelling should be a binding requirement in the contract and the briefing.
Do I have to label organic posts with UGC on my company account?
Usually not, because posts on a company account are recognisable as the company’s communication. But avoid giving the impression that a paid performer is an independent customer.
Which terms are suitable for labelling?
Clear terms such as “Werbung” or “Anzeige” are suitable, together with the platform’s paid partnership feature. Avoid unclear terms such as “Kooperation” (collaboration) without any further label.
Ad disclosure
UGC with clear rules
We produce UGC with rights settled in writing and make labelling a binding requirement in the briefing.