#ad disclosure rules in Canada: what creators and brands must do

Who sets the rules in Canada?

Two bodies matter. The Competition Bureau is the federal agency that enforces the Competition Act, which bans misleading advertising and deceptive marketing. It has said plainly that influencer posts are covered and that influencers must clearly disclose their relationships with the brands they promote (Competition Bureau, 2019).

Ad Standards is the advertising industry's self-regulatory body. Its Influencer Marketing Disclosure Guidelines, last updated in fall 2025, are the most detailed practical guide to what a clear disclosure looks like. Ad Standards notes that breaching the Competition Act can lead to civil or criminal action, citing sections 52 and 74.01 of the Act (Ad Standards, 2025).

What counts as a "material connection"?

You must disclose any material connection: a link between you and a brand that could affect how much weight people give your post. Ad Standards lists:

• money or other compensation
• free products, with or without conditions attached
• discounts, gifts, and contest or sweepstakes entries
• an employment relationship
• a personal or family relationship with the brand

The Competition Bureau's own list is similar: money or commissions, free products or services, discounts, free trips or tickets to events, or a business or family connection with the brand. If any of these apply, the post needs a disclosure, even if the brand didn't ask you to post.

Which labels are clear enough?

Ad Standards lists these as clear and widely accepted:

Plain words also work. A sentence like "I'm working with XYZ on this video" or "Thanks XYZ for the free product" can be enough, as long as it makes the relationship obvious.

Which labels don't work?

Ad Standards calls these ambiguous, because viewers can't tell that there's a material connection: #Ambassador, #Partner, #Spon, #PR, #Promo, #PRHaul, #Brand and #Collab on their own.

Other common mistakes it flags:

• Only tagging the brand. Viewers can't tell whether a tag means you're paid, so the relationship has to be stated as well.
• Merging #ad into another word. "#coolstyllead" hides the "ad" at the end.
• Misspelling the disclosure or adding spaces inside it.
• Burying it at the end of a long list of hashtags, or in a tiny, faint overlay.

Where should the disclosure go?

The guidelines' short version is "Upfront is best" and "When in doubt, spell it out."

• Captions: put the disclosure in the main message, ideally at the beginning, and always before any block of hashtags or mentions. It should be visible without tapping "more".
• Videos (YouTube, TikTok, Reels): disclose in the video itself, said aloud or shown on screen at the beginning (within the first 30 seconds), and in the caption. A caption-only disclosure is not enough when the video itself promotes the brand. For longer videos, repeat it.
• Short posts (X, Threads): use #ad or #sponsored, and give every post in a series its own disclosure.
• Check on a phone. Make sure the disclosure is easy to see on mobile, where most people will see it.

Are built-in "Paid partnership" labels enough?

Use them when you have them. Ad Standards recommends the platforms' paid-partnership tools. Where the tool gives a prominent, clear and effective disclosure, nothing extra is required. However, it remains your responsibility as the creator to check that the label is actually visible on every device. The guidelines' video example shows the label used together with #ad and the brand's name.

If the brand helped shape what you said, say that too, for example: "Thanks to X for sponsoring and collaborating with me on this video."

Does the language matter?

Yes. Disclose in the language of the post. If your content and captions are in French, the disclosure should be in French. If they're in English, disclose in English.

What about AI, filters and young audiences?

The 2025 update adds three points:

• AI influencers still disclose. An AI-generated influencer must disclose material connections like anyone else. Best practice is to also say the spokesperson is virtual, for example #VirtualInfluencer or #AIcreated. It also shouldn't give a testimonial about things it can't experience, like how food tastes.
• AI-made or heavily edited images showing a product's results should be disclosed, for example #MadeWithAI. Filters and AI must not exaggerate what a product does, and a disclaimer can't fix a misleading image.
• Children are a special audience. If your audience includes kids, make disclosures noticeable and explained in age-appropriate language.

Are brands responsible too?

Yes. The Competition Bureau says businesses share responsibility with influencers and may be liable for false or misleading content in the posts they sponsor. Ad Standards puts the onus on everyone involved: the brand, any agency or PR firm that arranged the deal, and the creator.

In practice, brands should put disclosure requirements in every brief and contract, check posts before or soon after they go live, and ask for fixes when a disclosure is missing or buried.

Quick checklist for creators

• Any money, free product, discount, trip, affiliate link or personal tie? Disclose it.
• Use #ad (or #sponsored, #Gifted, #InvitedGuest, #affiliate, as fits).
• Put it first, before other hashtags, and visible without tapping "more".
• In videos, say or show it in the first 30 seconds and put it in the caption.
• Turn on the platform's Paid partnership label when available.
• Disclose in the language of the post.

Quick checklist for brands

• Write the disclosure rules into the brief and the agreement.
• Make sure creators can use the platform's paid-partnership tool, and approve it when asked.
• Review live posts, and ask for a correction if a disclosure is missing, unclear or hidden.
• Never ask a creator to hide or soften a disclosure.