Turning Trust to Transactions: Tracking Affiliate Marketing and FTC Compliance in YouTube's Influencer Economy
This study quantifies the extent of non-compliance with FTC affiliate marketing disclosure guidelines on YouTube, highlighting a persistent problem for consumers and regulators in the influencer economy.
This paper examines the prevalence of affiliate marketing and compliance with FTC disclosure guidelines on YouTube using a 10-year dataset of 2 million videos from nearly 540,000 creators. It found that while affiliate links are widespread, most videos fail to meet FTC disclosure standards, and platform-standardized disclosure features are highly associated with improved compliance.
YouTube has evolved into a powerful platform that where creators monetize their influence through affiliate marketing, raising concerns about transparency and ethics, especially when creators fail to disclose their affiliate relationships. Although regulatory agencies like the US Federal Trade Commission (FTC) have issued guidelines to address these issues, non-compliance and consumer harm persist, and the extent of these problems remains unclear. In this paper, we introduce tools, developed with insights from recent advances in Web measurement and NLP research, to examine the state of the affiliate marketing ecosystem on YouTube. We apply these tools to a 10-year dataset of 2 million videos from nearly 540,000 creators, analyzing the prevalence of affiliate marketing on YouTube and the rates of non-compliant behavior. Our findings reveal that affiliate links are widespread, yet dis- closure compliance remains low, with most videos failing to meet FTC standards. Furthermore, we analyze the effects of different stakeholders in improving disclosure behavior. Our study suggests that the platform is highly associated with improved compliance through standardized disclosure features. We recommend that regulators and affiliate partners collaborate with platforms to enhance transparency, accountability, and trust in the influencer economy.