X introduces new rules for paid promotion disclosures—strengthening transparency to build trust

X has finalized plans to gradually introduce new disclosure rules to address issues surrounding transparency in the advertising market. This includes stricter display regulations for paid promotional advertisements on prediction market platforms like Kalshi and Polymarket. Behind this move is a demand from both users and the advertising industry for increased transparency.

Pressure from the Market for Advertising Transparency

The digital advertising market has become increasingly complex, with the line between paid promotions and organic content blurring. In particular, there have been repeated concerns that ads from financial platforms can mislead users. To prevent a decline in industry trust, X has prioritized strengthening disclosure features as a key initiative.

Mandatory Disclosure of Paid Promotions and Penalties for Violations

The core of the new rules is the mandatory clear labeling of paid promotions. According to Nikitabier, accounts that fail to meet disclosure requirements will face suspension. The platform will enforce the display of a “Paid Promotion” label on each ad post, making it easier for users to identify the nature of the advertisement.

X’s Strategy for Compliance and Trust Maintenance

These measures are part of X’s comprehensive strategy to unify advertising standards and rebuild user trust. An environment of transparent advertising will also enhance the platform’s long-term value. Moving forward, X plans to further strengthen these standards and set a benchmark for the industry.