Will MrBeast’s sponsor disclosures (or lack thereof) get him in trouble with the FTC?

The Federal Trade Commission (FTC) has strict disclosure guidelines for creators who upload sponsored content. For channels that appeal to kids, the policies are even tighter. YouTube’s biggest star, MrBeast, certainly qualifies as a kid-friendly entertainer — but is he following the FTC’s rules?

That’s the question the Children’s Advertising Review Unit (CARU) is asking. The independent agency, which exists within the nonprofit BBB National Programs, issued a press release that accuses MrBeast of providing insufficient disclosures related to sponsorships and sweepstakes.

The CARU report offers numerous examples of MrBeast videos that seem to clash with the FTC’s rules. “CARU observed several MrBeast YouTube videos where the video descriptions and pinned comments contained advertising content unrelated to the videos,” reads the report. “This content was not clearly labeled or otherwise identifiable as advertising to children in the audience.”

MrBeast’s practices related to his Feastables brand also drew scrutiny. For a 2024 Halloween sweepstakes, the method of free entry (i.e. entries that did not require the purchase of Feastables products) was improperly disclosed. Since the contest targeted children, additional measures were required. “One of the rules was that minors can enter with parental consent, but the parental consent was not obtained before collecting personal information,” CARU reported.

The CARU press release includes a joint statement from the MrBeast and Feastables teams. The two entites expressed appreciation for “CARU’s mission,” but they also disagreed with some of the organization’s conclusions. “A variety of the issues raised by CARU relate to practices long since revised and/or discontinued,” reads the statement. “Notwithstanding, MrBeast and Feastables certainly will take CARU’s concerns under advisement as it develops future advertisements which appear in children’s media.”

Even if MrBeast has addressed CARU’s concerns, the creator’s team should still keep a lookout for the FTC. Franklin Graves, an attorney researching and writing about law and policy at Creator Economy Law, told Tubefilter that “it is not uncommon” for CARU investigations to lead to further action from the FTC. Despite the corrections in place, FTC probes and class action lawsuits could still be on the table.

“If the alleged violations are proven true after further investigation by the FTC, Feastables, Inc. could potentially carry fines, enforcement measures, and a future where the business ventures and activity of the various MrBeast brands are heavily audited and scrutinized,” Graves said. He added that the interconnectedness of MrBeast businesses (e.g. the presence of a Feastables sweepstakes on a MrBeast video) “can potentially open broader exposure across the MrBeast operations.” Even the United States Postal Service, which oversees rules for sweepstakes, could become involved.

This is the price MrBeast is paying as he attempts to build the biggest creator-led business we’ve ever seen. Such a big undertaking tends to bring increased vigilance from regulators — just as KSI and Logan Paul. The former boxing foes were riding high when they launched beverage brand Prime in 2022, but as sales increased, so did scrutiny. Prime has since been hit with numerous lawsuits that have hurt its bottom line. If MrBeast wants Feastables to avoid that fate, he should make sure that all of his disclosures are as meticulous as can be.