On TikTok the setting appears in the posting flow as the content disclosure option: before publishing, the creator switches disclosure on and selects whether the post promotes a third party (branded content, labeled "Paid partnership") or their own business (labeled "Promotional content"). The label is shown on the video to every viewer.
Disclosure does not hurt reach. TikTok states that turning the setting on does not affect how a post is recommended. The reverse is not true: content that TikTok's systems flag as undisclosed branded content can be made ineligible for the For You feed, cutting its organic distribution, and violations of the Branded Content Policy — which also restricts certain industries entirely — can lead to removal.
The toggle is not the whole obligation. The label satisfies TikTok's platform rules, but advertising regulators (such as the FTC in the United States) require clear disclosure of any material connection regardless of platform features. Best practice is the toggle plus an explicit disclosure such as #ad in the caption.
Why it matters for brands
Brands are accountable for their creators' disclosures, not only the creators themselves. Building the toggle into campaign briefs and content review protects reach — undisclosed posts lose For You feed eligibility — and shields the brand from regulatory exposure.