Two lawsuits are now aimed at how prediction market Polymarket used creators. In June, the National Association of Consumer Advocates sued Polymarket's operators in D.C. Superior Court. Its complaint alleges they "used secretive and undisclosed paid endorser posts on social media to raise their profile online." A second, proposed class action, Moeller v. Blockratize, filed in D.C. Superior Court on July 2, was removed to federal court in D.C. on September 2, 2026. On October 8, the judge set a schedule: an amended complaint by October 23 and a renewed motion to dismiss or compel arbitration by November 23. Whatever happens in court, the FTC's Endorsement Guides already say what a creator must disclose.
These are allegations. Polymarket hasn't been found liable for anything. But the rule they lean on applies to every creator who takes money, product or equity, so let's read it.
Takeaway #1: Pay is only the start
FROM THE RULE
"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. Material connections can include a business, family, or personal relationship."
What it means for you. Two tests: would the connection affect how much your audience trusts the post, and would they not expect it? If both, disclose it clearly. The same paragraph says material connections can include "monetary payment or the provision of free or discounted products," even when the brand doesn't require a post in return. It adds "other benefits to the endorser, such as early access to a product."
The NACA complaint shows why this matters in a lawsuit. It alleges that "individual influencers with hundreds of thousands of followers have secretly received thousands of dollars" to post "without disclosing their affiliation with the brand." It also alleges that Polymarket's chief marketing officer "reportedly used a personal PayPal account to send at least $350,000 to content creators between January 2025 and February 2026." None of that has been tested in court. The claims run under D.C.'s consumer-protection statute, which tells courts to give weight to how the FTC reads "unfair or deceptive." The complaint is explicit about its focus: "This case is about deceptive and unfair advertising practices." It says the case "is not focused on whether gambling and gaming laws apply." That's the part creators should notice: a disclosure fight doesn't depend on whether the product itself is legal.
Your move. Creators: put the disclosure where the audience sees it before they hit "more," in the video and the caption. A platform's "paid partnership" tag is a platform tool, not the FTC rule; use it, and still say it in your own words. If a brand asks you not to disclose, that tells you what you need to know about the brand.
Takeaway #2: Equity and commissions count too
FROM THE RULE
"Consumers are unlikely, however, to expect that an expert endorser like the physician receives a percentage of gross product sales or owns part of the company, and either of these facts would likely materially affect the credibility that consumers attach to the endorsement."
What it means for you. The example is about a doctor in a TV ad, but the point travels. If you own part of the brand, or take a cut of sales, your audience probably doesn't assume it, and it changes how they hear you. Founder-creators: that's you. Affiliate-link creators: that's you too.
The devil is in the details. A creator with a brand stake who posts "obsessed with this" and nothing else has the same problem as one who was paid in cash. The NACA complaint also takes aim at "clipping," where clippers are allegedly paid by views to repost short cuts of influencer content. If you're paid to amplify, you're in the connection business too.
Your move. Agencies and brands: write the disclosure duty into the contract, with the exact words and placement, and keep proof of review. Creators: ask what the brand's disclosure policy is before you sign, not after a reporter asks.
Sample wording (our illustration): "Paid partnership with [Brand]. I also own a stake in the company."
And always remember, don't sign it till you read it, my friends.
General information, not legal advice. Reading this doesn't create an attorney-client relationship. Talk to a lawyer about your own sponsorships.
Sources
- National Association of Consumer Advocates, Inc. v. Blockratize, Inc. et al., D.C. Super. Ct. No. 2026-CAB-004388, Complaint (June 26, 2026), as filed in Moeller v. Blockratize, D.D.C. No. 1:26-cv-03083, ECF No. 1-1 at 53–93
- Moeller v. Blockratize, Inc. et al., D.D.C. No. 1:26-cv-03083, docket (CourtListener)
- 16 C.F.R. §255.5, Disclosure of material connections (eCFR)
