The lawyer-founded startup that turned a 2009 FTC rule change into a patented system for disclosing paid posts, reviews and endorsements on social media.
CMP.LY's "front door" mark - the brand name doubled as its product, since CMP.ly was itself a working disclosure link. Founder Tom Chernaik launched it months after regulators rewrote the rules for online endorsements.
CMP.LY set out to answer a deceptively hard question: how do you put a complete legal disclosure inside a message that only allows 140 characters? In 2009, the Federal Trade Commission revised its guidelines on endorsements and testimonials, requiring anyone with a "material connection" to a brand to disclose it - even in a tweet. CMP.LY built the plumbing for that requirement.
The company's core idea was standardization. Rather than leave every marketer to invent their own wording, CMP.LY created a compact vocabulary of codes, icons and short URLs. A creator could append a single link - say, CMP.ly/3 - to signal a paid post. The short code carried the meaning; the link pointed back to a full, human-readable disclosure and, behind the scenes, to a documented audit trail that a compliance officer could produce on demand.
That combination - brevity on the surface, completeness underneath - is what made CMP.LY unusual. It treated disclosure not as boilerplate text but as infrastructure: scannable, linkable, measurable and auditable. For brands operating under FTC rules, and later FINRA, SEC and FDA requirements, that infrastructure was the difference between engaging on social media and staying off it entirely.
Over time the platform grew beyond disclosure into monitoring and measurement. By 2013 CMP.LY had launched a Monitoring, Measurement & Insights platform, and in 2014 it rebranded that product as CommandPost - a reflection of where its Fortune 100 clients were spending their attention.
CMP.LY's disclosure system read like a legend on a map. Each short URL encoded the exact nature of a relationship between a creator and a brand - making disclosure both machine-readable and instantly understandable to a reader.
Code definitions per CMP.LY's published disclosure standard. CMP.ly/5 details are approximate.
Before CMP.LY, social media disclosure was ad hoc. Some marketers wrote "#ad," others wrote nothing, and few kept records. Regulators were signaling that this would not hold. The risk was real but the tooling did not exist, especially for regulated industries where a single non-compliant post could trigger a FINRA or SEC review.
CMP.LY's differentiation was its focus. It was not a broad social-management suite that happened to mention compliance; it was built around disclosure from the first line of code. That narrow focus produced a patented system (US Patent No. 8,549,140) and a set of standards - iconography, codes and framework - meant to apply to any content on the internet.
It also came from an unusual place. Founder Tom Chernaik is a lawyer, holding a JD from Cardozo School of Law. CMP.LY was, in effect, a legal insight rendered as software - which gave it credibility with the compliance officers who ultimately had to sign off.
Where competitors optimized for reach, CMP.LY optimized for defensibility: could you prove, later, exactly what was disclosed and when? For a bank or a pharmaceutical marketer, that question mattered more than follower counts.
Counting likes, followers and other social activities are no longer strong enough metrics to prove success.- Tom Chernaik, CEO & Co-Founder
The patented core: short disclosure URLs, codes and icons that fit inside a social post while linking to full, audit-ready disclosures across Facebook, Twitter and blogs.
A disclosure and compliance solution tailored to financial services, addressing FINRA and SEC requirements so regulated firms could actually engage on social media.
A patented Monitoring, Measurement & Insights platform with cross-platform reporting, real-time insights and built-in compliance via branded URLs like rul.es and paid-po.st.
CMP.LY operated as a B2B SaaS business, selling subscription and managed-service compliance and measurement to large brands and their agencies - concentrated in regulated sectors where audit-ready disclosure carried genuine stakes.
The company raised over $3 million across two rounds, keeping a lean team focused on a specific, defensible problem.
Funding figures per public startup databases; investor names not publicly disclosed.
Seed round · Series A · Cumulative
CMP.LY's customers were Fortune 100 companies and the advertising, PR and social agencies that served them - clustered in financial services, automotive and consumer packaged goods. These were organizations for which a compliance slip was expensive, which made disclosure infrastructure an easy purchase to justify.
Within the broader martech landscape, CMP.LY occupied a narrow but strategic seam. On one side sat general social-management and measurement platforms - the Hootsuites and Sprinklrs of the world. On the other sat regulated-industry compliance tools like Actiance/Smarsh and Hearsay Systems. CMP.LY sat at the intersection: social-native, compliance-first.
That position let a three-person company punch above its size. It did not need to win the entire social-media market; it needed to own the disclosure standard, and for a stretch it did - being described as the first and only dedicated provider of commercial social media disclosure compliance.
The founder amplified that position through industry work, serving as Co-Chair of the Word of Mouth Marketing Association's Members Ethics Advisory Panel and becoming a frequent expert voice on social media ethics and disclosure.
Tom Chernaik launches the company months after the FTC issues new guidelines on endorsements and testimonials in social media.
Early funding expands the disclosure-compliance product, including work toward a financial-services solution.
A larger round broadens the compliance, intelligence and analytics offering.
The patented Monitoring, Measurement & Insights platform arrives for managed social communications.
CMP.LY formally rebrands, shifting emphasis from disclosure codes to social measurement and insights.
CMP.ly is a working short domain - so the brand itself doubled as the disclosure link a marketer pasted into a post.
US Patent No. 8,549,140 covers the system - essentially owning a standardized method for social media disclosure.
Branded disclosure URLs included rul.es, ter.ms and paid-po.st - compliance infrastructure disguised as clever wordplay.
The founder's JD from Cardozo wasn't a footnote - it was the moat. The product was a legal reading turned into software.
CMP.LY provides social media disclosure-compliance tools - patented codes, icons and short URLs that let brands and creators disclose paid posts, reviews and material connections in line with FTC, FINRA, SEC and FDA rules, plus later monitoring and measurement.
It was founded in 2009 in New York by Tom Chernaik, a lawyer (JD, Cardozo School of Law) who serves as CEO and Co-Founder.
The company raised over $3 million - roughly a $750K seed round in 2011 and a $2.4M Series A in 2012.
In June 2014 the company rebranded its platform as CommandPost, shifting focus from disclosure compliance to social media monitoring, measurement and insights.
A set of short URLs signaling relationship type - for example CMP.ly/0 (unpaid, own opinion), CMP.ly/1 (review copy), CMP.ly/2 (free sample), CMP.ly/3 (paid post) and CMP.ly/4 (employee or business relationship).
Compiled from public sources including Adweek, TechCrunch, PRNewswire, Crunchbase and the company's own pages. Details reflect the best available public information; some figures are approximate.