Usage rights and disclosure
Usage rights and disclosureHow we handle them
This page explains which usage rights you get from FNLY Social, how we obtain model releases, and how we produce UGC with the FTC Endorsement Guides and the Consumer Review Rule in mind. It is not legal advice.
Usage rights by package
Every FNLY Social package comes with fixed usage rights, and we put them in writing in your quote.
| UGC single video | organic use unlimited, paid ads 12 months |
| UGC Starter | organic use unlimited, paid ads 12 months |
| UGC Ads | organic use unlimited, paid ads 12 months |
| UGC Monthly | organic use unlimited, paid ads 12 months, raw footage included |
| Photo packages | organic and paid use unlimited |
| Unlimited paid usage | $75 per video |
| Whitelisting or Spark Ads | $150 per creator per month |
| Industry exclusivity | 3 months, +30% |
| Logo | copyright assigned to you, with the right to edit and register as a trademark |
Organic means posting on your own channels and website without paid reach. Paid ads means use in paid advertising, and the 12 months run from delivery of the videos. Rights pass to you once paid in full. A trademark search is not included with logos. Prices net in USD.
Why we put usage rights in writing
A written license tells you exactly where, how long and in which media you may use each video. Under US copyright law the creator of a work is its owner unless the rights are transferred, for example by contract.
At FNLY Social the copyright stays with the creator. You get a license that names medium, territory and term, and you can extend it at fixed prices, for example to unlimited paid usage or whitelisting.
Model releases and right of publicity
Every person who appears in our videos or photos signs a written model release before the shoot. The release names purpose, media and term and covers the scope you buy with your package.
In the US, the right of publicity, meaning the right to control commercial use of one's name and likeness, is governed by state law and differs from state to state. A written release for commercial use is the common way to cover it. If you extend your usage later, we extend the releases too.
If your own employees or other people appear, they need a written release as well. The quote states who obtains it.
FTC disclosure
When there is a material connection between a brand and the person promoting it, the FTC expects that connection to be disclosed clearly and conspicuously. This follows from the FTC Endorsement Guides (16 CFR Part 255), revised in 2023.
When you run our videos as ads from your own account, the platform's ad label shows that the content is advertising. When a video appears on a creator's own account, for example through Spark Ads on TikTok or partnership ads on Meta, the creator discloses the paid relationship, for example with “#ad” or “Paid partnership”. The FTC points out that a platform's built-in disclosure tool alone might not be enough, so check each placement.
You approve all product claims before production. Claims about your product must be truthful and substantiated, and that responsibility stays with you as the advertiser.
No fake reviews
UGC from FNLY Social is advertising content and is never presented as a customer review. The FTC Rule on the Use of Consumer Reviews and Testimonials (16 CFR Part 465) has been in force since October 21, 2024, and bans fake reviews and testimonials, including those from people without real experience with the product.
That is why our creators actually use your product, our scripts never invent experiences, and you should not post our videos in review sections or label them as customer reviews. Courts can impose civil penalties for knowing violations of the rule.
Updated:
Sources
- FTC, FTC's Endorsement Guides: What People Are Asking
- FTC, Disclosures 101 for Social Media Influencers
- FTC, Updated Advertising Guides to Combat Deceptive Reviews and Endorsements, June 29, 2023
- FTC, The Consumer Reviews and Testimonials Rule: Questions and Answers
- FTC, Final Rule Banning Fake Reviews and Testimonials, August 14, 2024
- U.S. Copyright Office, What is Copyright?
FAQ
Frequently asked questions
Do UGC videos include usage rights?
Yes. Every FNLY Social UGC package and the single video include unlimited organic use and paid ads for 12 months. Photo packages include organic and paid use with no time limit. We put the exact scope in writing in your quote.
Can I extend paid usage later?
Yes. Unlimited paid usage costs $75 per video, net. FNLY Social then extends the model releases of the people on camera as well.
What is whitelisting?
Whitelisting means you run ads through a creator's account, for example as Spark Ads on TikTok or partnership ads on Meta, so the ad shows the creator's name instead of your brand. At FNLY Social it costs $150 per creator per month.
Who owns the copyright in the videos?
The copyright stays with the creator. You get a written license that defines medium, territory and term. Logos are different: once paid, we assign you the copyright in the chosen logo, including the right to register it as a trademark.
What is a model release?
A model release is a written permission from a person that photos or videos of them may be used for a defined purpose, in defined media and for a defined term. In the US, the right of publicity is state law, so a written release is the common safeguard. FNLY Social gets one from every person on camera.
What are the FTC rules for UGC?
Under the FTC Endorsement Guides, a material connection between a brand and the person in the video must be disclosed clearly and conspicuously. In your own ads the platform's ad label applies, and when a creator posts on their own account, the creator discloses with “#ad” or “Paid partnership”. Please have your specific case checked by counsel.
Can I use UGC as a customer testimonial or review?
No. Under the FTC Consumer Review Rule, in force since October 21, 2024, you must not present advertising content as a customer review. FNLY Social creators actually use your product and our scripts never invent experiences, but the videos remain advertising.
Is this page legal advice?
No. We describe how FNLY Social handles rights and disclosure and name the official sources. For your specific case, please talk to a US advertising lawyer.
Usage rights and disclosure
Do you have a question about rights?
Tell us how you want to use the content. We tell you which package and which rights fit.