Advertising and Marketing 2026

Last Updated October 13, 2026

UK

Law and Practice

Authors



Lee & Thompson is one of the UK’s leading law firms for the creative industries. Its dedicated advertising law group advises on campaign strategy, commercial contracts, dispute resolution, IP, media buying strategies, adtech, media sales representation, regulatory compliance, talent/content acquisition, employment/HR, data protection/privacy and investments/M&A. The firm advises national and international brands, global advertising groups (including two “big four” agencies), world-leading PR and communications groups, and some of the largest ad-funded publishers and advertising sales houses, as well as individual talent, start-ups and technology platforms. Its standing in the industry is reflected in its relationship with the Data and Marketing Association (DMA), for which Lee & Thompson runs a legal advice service, and the Alliance of Independent Agencies (AIA), for which it runs a legal advice and pitch protection service and numerous training initiatives for member agencies, including the legal module of their Diploma in Marketing Communications.

Marketing and advertising are subject to a combination of regulations (general and industry-specific), laws, codes of practice and guidelines.

The Regulatory System

The primary regulatory controls are set out in two regulatory codes of practice:

  • the CAP Code (for non-broadcast advertising); and
  • the BCAP Code (for broadcast advertising) (together: the “Codes”).

The Codes are self-regulatory codes, written by the Committee of Advertising Practice (CAP) and enforced by the Advertising Standards Authority (ASA) (in the case of the BCAP Code, partly under delegated authority from Ofcom (the communications regulator) in respect of television and radio advertising. Ofcom retains some regulatory oversight over television and radio advertising (including product placement).

Industry-specific regulators also restrict the advertising of products and services within their industries via applicable legislation. These include the Financial Conduct Authority (FCA) under the Financial Services and Markets Act 2000 for financial services and products, and the Medicines and Healthcare Products Regulatory Agency regulates medicines principally under the Human Medicines Regulations 2012 and medical devices under the Medical Devices Regulations 2002.

The use of personal information in marketing communications is regulated by the Information Commissioner’s Office (ICO). The Gambling Commission has regulatory oversight of the Gambling Act 2005 (regarding gambling, lotteries and prize competitions (if they fall within the definition of regulated gambling)).

Law

There is no codified “marketing and advertising” law in the UK. The applicable laws are a combination of statute and common law, which relate to different aspects of the industry, as follows.

  • Intellectual property laws protect creative content, particularly registered and unregistered trade marks/passing off, copyright and designs (especially on product packaging).
  • Until 6 April 2025, consumer protection was regulated by the Consumer Protection from Unfair Trading Regulations 2008 (CPRs) and the Consumer Rights Act 2015 (CRA). The Digital Markets, Competition and Consumers Act 2024 (DMCCA) has now replaced and enhanced the CPRs and introduced new and powerful enforcement measures including substantial fines. The CPRs, however, continue to apply to unfair commercial practices occurring prior to 6 April 2025.
  • The use of personal information, especially in electronic marketing, is governed by the UK General Data Protection Regulation (UK GDPR), the Data Protection Act 2018 (DPA), the Privacy in Electronic Communications Regulations (PECR) and the Data (Use and Access) Act 2025.
  • The Gambling Act regulates the legality of prize competitions.
  • The law of defamation and privacy may be relevant where advertising features recognisable individuals.

Best practice is set out in codes of practice published by industry associations to which member organisations agree to be bound.

ASA

The ASA is the UK’s independent advertising regulator. It enforces the Codes, handles complaints from consumers and competitors, and proactively monitors advertising. It can request (but not compel) the removal or modification of non-compliant advertising and the withdrawal of certain privileges (eg, trading privileges for direct mail). ASA rulings are published weekly. In practice, the ASA’s principal “power” is the negative publicity associated with such adverse rulings (when picked up by the press), which can significantly impact brand reputation.

The ASA publishes a list of repeat offenders and may refer egregious cases to Trading Standards, its principal statutory backstop. Broadcast matters may be referred to Ofcom, and sector-specific matters may be referred to the relevant statutory regulator. Those bodies can investigate and pursue statutory enforcement action. Separately, the CMA has direct enforcement and fining powers under the DMCCA in relation to infringements of consumer protection law.

CMA

In recent years, the CMA has taken particular interest in transparency in influencer marketing, deceptive online reviews, misleading pricing practices and greenwashing.

Since 6 April 2025, the DMCCA has enabled the CMA to determine directly whether specified consumer protection laws have been infringed, issue directions and impose financial penalties without first obtaining a court order. The maximum penalties include:

  • GBP300,000 or, if higher, 10% of annual global turnover for breach of consumer protection law;
  • GBP150,000 or, if higher, 5% of annual global turnover for breach of binding undertakings or CMA directions; and
  • for failure to comply with an information notice, £30,000 or, if higher, 1% of turnover, with additional daily penalties of £15,000 or, if higher, 5% of daily turnover.

Additional penalties may be imposed for ongoing breaches and for providing misleading information. The CMA may also direct a business to implement enhanced consumer measures. These can include requiring the business to offer compensation or other redress to affected consumers and, where the infringement concerns a contract, giving consumers the option to terminate it.

Where criminal liability arises, the CMA can pursue criminal action through the Magistrates Court, leading to fines and up to two years’ imprisonment.

Following consultation, the CMA published its Direct Consumer Enforcement Guidance (CMA200) on 14 March 2025. It subsequently published its Unfair Commercial Practices Guidance (CMA207) on 4 April 2025 and updated it on 18 November 2025 to reflect new guidance on price transparency.

ICO

The ICO has regulatory oversight of data protection law and electronic marketing (email, SMS etc). It generally encourages compliance through education and guidance but has the power to impose fines and enforce undertakings. The ICO cannot award damages to affected individuals or businesses, who must instead go through the courts to obtain damages).

Advertisers are primarily responsible for misleading or otherwise non-compliant advertising published by them or on their behalf (including via affiliate marketing). Other entities involved in the creation or distribution of the marketing communication, such as agencies and publishers, also accept an obligation to abide by the Codes.

In affiliate marketing, both the business and the affiliate marketer may be held responsible under the Codes, even where the affiliate created the advertising without input from the business.

Alongside brands themselves, influencers and endorsers (particularly on social media) may be liable if they fail to disclose commercial relationships or otherwise breach the Codes or break the law.

Some unfair commercial practices under the DMCCA are criminal offences. A company and an officer, such as a director or manager, may both be prosecuted where the officer consented to the offence, was involved in it, or the offence was attributable to their neglect.

Advertising is not defined in the Codes, which instead list the types of marketing communication that fall within the ASA’s remit, including marketing communications in television, radio, cinema, print, social media, email marketing, direct mail and promotional marketing. Certain communications fall outside the ASA’s remit, such as product packaging (unless part of a promotional offer), in-store displays, purely editorial content, press articles (except for paid advertorials), private classified ads and financial promotions (regulated by the FCA). However, other regulators like Ofcom, Trading Standards or industry-specific bodies may have authority over these communications.

Regulation 2 of the Business Protection from Misleading Marketing Regulations 2008 defines advertising as “any form of representation which is made in connection with a trade, business, craft or profession to promote the supply or transfer of a product”.

Section 9 of the Ofcom Broadcasting Code, which principally focuses on in-programming advertising, defines “commercial references” as “any visual or audio reference within programming to a product, service or trade mark (whether related to a commercial or non-commercial entity)”.

The Ofcom Code on the Scheduling of Television Advertising defines “television advertising” as “any form of announcement broadcast whether in return for payment or for similar consideration or broadcast for self-promotional purposes by a public or private undertaking or natural person in connection with a trade, business, craft or profession in order to promote the supply of goods or services, including immovable property rights and obligations, in return for payment”.

Generally, no pre-approvals are required from government authorities or self-regulatory bodies. Certain industries may require pre-approval, such as pharmaceuticals, financial services and gambling.

Televisionand certain categories of radio ads (eg, alcohol and gambling) require clearance by Clearcast and Radiocentre, respectively, which screen scripts and final cuts for compliance with the BCAP Code. The Cinema Advertising Association pre-approves cinema ads. Approval is not a guarantee of compliance, meaning advertisers may still be subject to investigation and an adverse ruling by the ASA.

CAP operates a voluntary non-binding pre-publication clearance service for non-broadcast advertising. The advice does not constitute formal approval and does not bind CAP or the ASA.

Advertising content must comply with IP laws, particularly laws on trade marks and passing off, registered/unregistered designs and copyright.

The UK does not have a standalone “right of publicity” but unauthorised use of an individual’s name, image or likeness may lead to claims of trade mark infringement or passing off (false endorsement) or (depending on context) breach of an individual’s rights of privacy (where there is a reasonable expectation of privacy), or copyright infringement (where copyright in the underlying work is owned by a third party). Use may also infringe an individual’s rights under data protection legislation. Legal cases (for passing off) have involved famous sports people (Eddie Irvine) and popstars (Rihanna).

Under the BCAP Code, television and radio advertisements require permission before featuring, caricaturing or referring to a living person, with very limited exceptions. For non-broadcast advertisements, under the CAP Code, permission is recommended rather than strictly required, but an individual must not be portrayed offensively, adversely or defamatorily, or in a manner that interferes with their private or family life.

There are limited (and closed) fair dealing defences to copyright infringement which, although relatively untested in the English courts, may apply in certain circumstances, including “caricature, parody or pastiche” and “quotation”.

The law of defamation may be relevant if an individual is associated with a product or service that could damage their reputation and that association is likely to cause them serious harm.

Unauthorised use of third-party IP rights may lead to claims of infringement and liability for damages or an account of profits, and possibly an injunction to prevent ongoing use.

The Codes are administered by the ASA and require that all advertising is “legal, decent, honest and truthful”. They include general rules regarding misleading marketing, social responsibility, harm and offence, and specific rules on issues such as marketing to children, gambling and environmental claims.

Complaints are resolved informally (often following agreement to amend or withdraw the advertisement) or formally (through a complaints process leading to published rulings).

While the ASA cannot impose fines or compel particular action, it can refer offenders to other authorities and threaten adverse publicity through published rulings (see 1.2 Enforcement and Regulatory Authorities). It also works with media owners to prevent ongoing publication of non-compliant advertising or compel pre-clearance in future, with search engines to restrict paid-search advertising, and with social media platforms to disable access to non-compliant content.

Consumers have certain rights of private action regarding misleading advertising and may pursue legal action for misrepresentation if they are induced into entering into a contract by misleading advertising. Failure by businesses to deliver on promises made in advertising can also lead to breach of contract claims by consumers, if those statements formed part of the contract between the business and consumer. Potential remedies include damages (for financial losses), refunds and rescission, allowing consumers to cancel contracts based on misleading advertising. In some cases, injunctions may be obtained to stop ongoing misleading advertising.

Consumers may report potentially unfair commercial practices to the CMA where they believe the problem affects more than one person. However, the CMA does not provide advice or intervene in individual disputes. Consumers seeking help with an individual dispute should generally contact the relevant consumer advice organisation in their area. Complaints concerning advertisements or promotions may also be submitted to the ASA, where the matter falls within its remit.

The DMCCA’s unfair-commercial-practices provisions apply to commercial practices occurring on or after 6 April 2025. Conduct occurring before that date remains subject to the Consumer Protection from Unfair Trading Regulations 2008 (CPUTRs) under the applicable transitional arrangements.

Consumers can also turn to various ombudsmen services for certain regulated industries. For example, the Financial Ombudsman Service can award compensation and require businesses to correct their mistakes. This can offer a quicker and more accessible alternative for financial-related complaints.

There has been a continuing focus on health, online safety and transparency, environmental claims and greenwashing, and ongoing discussions regarding the regulation of AI. Online safety remains prominent following the enactment of the Online Safety Act in 2023 (OSA) and the DMCCA has attempted to address harmful online choice architecture (see 3.3 Dark Patterns) and other practices such as drip pricing and fake or misleading reviews. There has been regulatory action regarding deceptive financial promotions and crypto advertising, and concerns around brand safety within programmatic media buying. Regulatory attention has likewise focused on cookie compliance, the use of AI and ongoing issues around the disclosure of commercial relationships by influencers.

Under the OSA, Category 1 and Category 2A services are subject to additional duties to tackle paid-for fraudulent advertising. In July 2026, Ofcom published its consultation on proposed codes of practice and guidance, setting out what those services should do to comply with these duties. The consultation closes on 2 October 2026 and Ofcom plans to publish the final statement by mid-2027 at the latest.

The DMCCA, and the CMA’s enhanced powers in particular, represent a very significant shift in the enforcement of (and thus compliance with) consumer protection laws.

Advertisers must be sensitive to various cultural and taste concerns to avoid causing offence and breaching the Codes. These include the following.

Gender Representation

The ASA has continued its focus on gender representation and the avoidance of gender stereotypes in advertising. In August 2026, the ASA ruled that an ad for the Candy AI App objectified women and included a gender stereotype that was likely to cause harm.

Body Image and Beauty Standards

The ASA has reported an uptick in complaints regarding “unhealthily thin-looking body types”, and has upheld several complaints relating to misleading advertising for weight loss supplements and beauty products, including the misleading use of digital filters.

Gambling

Several gambling ads have been subject to adverse ASA rulings for failing to adhere to guidelines that require that such advertising should not appeal to those under the age of 18.

Broader Cultural Sensitivities

Advertisers should note the Obscene Publications Act 1959, which, subject to certain requirements, makes it illegal to publish or distribute material considered to “deprave or corrupt” those encountering it.

Other cultural concerns must also be considered, such as representations of race, age, religion and disability, all of which must be handled sensitively. Content perceived as offensive or reinforcing harmful stereotypes can lead to significant public backlash and regulatory scrutiny.

Whilst a new Prime Minister was appointed in July 2026, Labour remained in government, and its approach continues to balance stronger consumer protection with economic growth and proportionate regulation.

Enforcement has nevertheless intensified in 2026. The CMA is using its enhanced DMCC Act powers, while new restrictions on less healthy food and drink advertising took effect in January 2026. The government has also continued working with industry through the Online Advertising Taskforce on AI, fraudulent advertising, influencer marketing and platform accountability. In parallel, the Data (Use and Access) Act reforms strengthened the ICO’s enforcement powers, including substantially higher penalties for PECR breaches.

Under the DMCCA, an advertisement is considered misleading if it is likely to deceive consumers or cause the average consumer to make a transactional decision they would not otherwise make. This includes providing false information, omitting crucial facts or deceiving consumers regarding the nature, characteristics or price of a product or service. These principles are reflected in the Codes.

Claims that cannot be objectively measured, such as opinions or “puffery”, are typically not regulated unless likely to mislead. Otherwise, all advertising claims (express or implied) must comply with the Codes. Objective claims must be verifiable and substantiated with evidence. Regulators have paid particular attention to vague claims like “natural” or “sustainable”, “green” and “healthy”, increasingly demanding evidence to back up such assertions.

The CAP Code requires objective claims to be supported by sufficient documentary evidence; such evidence is to be held by the advertiser before the claim is published and provided upon request to the ASA. The ASA may regard a claim as misleading in the absence of adequate substantiation. The CMA will adopt a similar approach under the DMCCA.

The type of evidence required will depend on the claim and the product sector. For example, claims about product performance, environmental impact or health benefits would need to be supported by empirical evidence such as scientific studies, clinical trials or independent expert verification.

Product demonstrations must accurately reflect performance under normal usage conditions. Misleading demonstrations, where products are shown to perform better than they do in real-world settings, are prohibited. Advertisers must ensure that demonstrations do not give consumers an unrealistic impression of the product’s capabilities.

Endorsements and testimonials must be genuine and reflect the honest opinions or experiences of the individuals featured. Advertisers must hold documentary evidence that a testimonial or endorsement is genuine and hold contact details for the person who gives it. Signed and dated proof is likely to be considered acceptable evidence. Advertisers should seek permission before using a testimonial from a customer or consumer. Paid-for endorsements or testimonials must clearly disclose the nature of the commercial relationship (see 5.5 Influencer Campaigns and Online Reviews).

Environmental claims such as “greener”, “cleaner”, and carbon neutral” are heavily regulated under the Codes and other legislation, including the DMCCA. Such claims must not mislead, must be substantiated with credible evidence, and must not make vague or unverified “green” claims. In recent years, several high-profile companies have been sanctioned for making unsubstantiated claims about sustainability, recycling or carbon neutrality. The CMA has issued a “Green Claims Code” to ensure that environmental claims are clear, accurate and not misleading. Product claims must take into account the whole product lifecycle, and claims regarding a business must take account of all aspects of that business (including, for example, its investment strategy).

The ASA is expected to continue issuing rulings in this area and the CMA can also employ its new enforcement powers under the DMCCA against advertisers making misleading environmental claims.

Under the CAP Code, ads “must be obviously identifiable as such”. Consumers should be able to recognise that something is an ad, without having to click or otherwise interact with the content. Disclosures must be clear, unambiguous and prominently placed. Disclosures are required to ensure transparency in claims and pricing, and their effectiveness can determine if a message would be deemed misleading or otherwise non-compliant. Where legal lines are used (linked-to via an asterisk in the body copy), they should qualify and support, rather than contradict, the main message.

There are particular rules around advertorials, where disclosures such as “Advertisement Feature” or “Advertisement Promotion” should be used, according to guidance from both the ASA and the CMA.

Other regulated claims, such as “natural”, “organic”," or “made in [country]“, are subject to specific rules under the Codes. As always, claims must be accurate and properly substantiated with evidence. Misleading claims about a product’s origin or natural ingredients can lead to regulatory action, especially if they create a false impression of quality or ethical production standards. Over the last year, the ASA has upheld several rulings concerning misleading or inadequately substantiated claims about products’ ingredients, composition, sourcing or production methods.

Rules and related guidance to restrict ads that reinforce harmful gender stereotypes have been in place for several years, aiming to prevent ads from perpetuating negative or harmful stereotypes based on gender, race, age or other protected characteristics.

Recent rulings have targeted ads portraying outdated gender roles or offensive racial depictions. In 2023, the ASA published guidance on avoiding racial and ethnic stereotypes after several adjudications against ads which it found mocked or insensitively depicted particular ethnic groups. Similarly, research by the ASA in 2025 into the portrayal of older people in advertising found that whilst older people were generally relatively positive about ageing, in advertising they were often shown to be frail, inactive and isolated. In July 2026, the Committee of Advertising Practice published updated Offence Age Guidance showing that age offence is an area of key focus for the ASA. The ASA continues to address complaints regarding all forms of representation, ensuring ads promote inclusion and avoid discriminatory content.

Advertising to children is subject to stricter regulations under the Codes, which see a child as anyone under the age of 16. The Codes require that ads aimed at children do not exploit their credulity and vulnerability, nor encourage poor nutritional habits, lifestyles or “pester power”. Advertisements for HFSS food and drink products are subject to timing and media restrictions, ensuring they are not targeted at or likely to be seen by children (see 10.1 Regulated Products). The past year has seen significant political and regulatory focus on protecting children, with more robust enforcement actions by the ASA and additional protections under the OSA. The OSA requires that online platforms prevent children from accessing age-inappropriate and harmful content, including some advertising. The DMCCA also restricts certain marketing to children, including an automatic prohibition on encouraging “pester power”.

UK data protection law affords specific protection to anyone under 18. Processing children’s personal data must be lawful, fair and transparent, and privacy information must be presented in clear, age-appropriate language. Organisations must take account of children’s particular vulnerability and must not use their data in ways that unfairly exploit their age, developmental stage or limited understanding. Where an online service relies on consent, a child aged 13 or over may generally consent independently; for a child under 13, parental authorisation is usually required. Under the Data (Use and Access) Act 2025, online services likely to be accessed by children must build children’s age-specific data protection needs into their design.

Dark patterns – techniques designed to manipulate consumers into taking actions they may not otherwise take – are increasingly being scrutinised in the UK. They often appear as deceptive design elements in digital advertising or service functionality intended to mislead, pressure or confuse consumers into making purchases or signing up for services. Such techniques often fall within the remit of the ASA as “misleading claims” – eg, false price reductions, countdown timers, drip-pricing and subscription traps.

Dark patterns likely also implicate consumer protection regulation, including the DMCCA, the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 (CCR) and the CRA. The CMA has published several open letters and has taken action against businesses using such tactics. As of 6 April 2025, the DMCCA has designated certain dark patterns, such as fake reviews and “drip pricing” (omitting material information including hidden fees), automatically unfair and illegal.

Sponsored and branded content must be clearly identified as such. Advertisers must make it clear when content is paid for or sponsored, using clear and prominent disclosures to avoid misleading consumers. This is a significant issue in social media marketing (see 5. Social/Digital Media).

There are particular rules around advertorials. If it is not apparent from the context, then disclosures such as “Advertisement Feature” or “Advertisement Promotion” should be used. Failure to appropriately identify an advertorial is both a breach of the CAP Code and an automatically unfair practice under the DMCCA.

Product placement is regulated on Ofcom-regulated television channels with signalling requirements (via a recognised logo) before and after the show and briefly in the ad break, in relation to commissioned programming.

Native advertising must be clearly recognisable as promotional material, and advertorials must be clearly distinguishable from editorial content. Section 2 of the CAP Code requires that native ads be clearly disclosed, so that viewers are not misled into believing they are viewing organic content.

The CAP Code specifically refers to the use of appropriate labels for “advertorial” content, such as “Advertisement Feature”. CAP Guidance also indicates that labels such as “Ad”, “Advert”, “Advertising” or “Ad Feature” are likely to be acceptable. A trader paying for editorial content in the media to promote a product without making the commercial nature of that content clear equates to an unfair commercial practice in all circumstances under Schedule 20 to the DMCCA.

Comparative advertising must comply with the Business Protection from Misleading Marketing Regulations 2008 (BPRs), which are reflected in the Codes. Consumer facing comparative advertising must also comply with the DMCCA. A comparative claim is one that explicitly or by implication identifies a competitor or their goods and services. Claims such as “the best” might amount to a comparison with all relevant competitors.

To be lawful, such a claim must:

  • not mislead in a way that is likely to affect the economic behaviour of consumers or injure the competitor (eg, misleading regarding the characteristics of the goods or services or how prices are calculated);
  • compare like with like – ie, compare goods or services meeting the same needs;
  • be an objective comparison of one or more material, relevant and verifiable features of the goods or service; and
  • not denigrate or discredit the competitor, nor take unfair advantage of the reputation of the competitor’s brand.

Comparative claims must also comply with IP laws (particularly trade mark law) and other laws, including defamation, malicious falsehood and potentially economic torts such as inducing breach of contract or causing loss by unlawful means.

Use of a trade mark in a comparative claim will expose the advertiser to liability for trade mark infringement, unless the advertiser complies with the BPRs, which will provide a defence to such a claim. Unauthorised use of a competitor’s logo and packaging could give rise to claims for copyright infringement. Fair dealing defences such as “caricature, parody or pastiche” and “quotation” are unlikely to be available for comparative claims. Copycat products and services have been the subject of several recent court decisions, most notably Thatchers’ Cider’s successful claim against Aldi (Court of Appeal January 2025). The Supreme Court refused Aldi permission to appeal, leaving the judgment in Thatchers’ favour.

Under the Codes, advertisers may challenge advertising claims made by competitors, subject to compliance with the ASA guidance on inter-party resolution of complaints.

Before making a complaint to the ASA, complainants must first attempt “in good faith” to resolve the issues directly with the competitor. The competitor should respond within five days; if they do not, or if the complainant considers that any response inadequately addresses the complaint, the complainant may then complain to the ASA. The complaint to the ASA should not raise issues that are not raised with the competitor, and the complainant must confirm that they are not also taking legal action in relation to the same issues. Competitors should not circumvent these rules by posing as consumers.

In applicable sectors, challenges can be raised with industry regulators such as the FCA and MHRA, each of which may have greater powers than the ASA to enforce compliance.

There are no special rules related to ambush marketing. Event owners will seek to protect themselves (and the rights of their commercial partners) against ambush marketing through registered trade mark rights and the law of passing off (false endorsement) and other IP rights. High-profile national events may be the subject of event-specific legislation, as was the case for the London Olympic and Paralympic Games in 2012 and the Commonwealth Games in 2022. There is specific legislation protecting the Olympic indicia, and the Royal Insignia.

Online and social media advertisements fall under the ASA’s remit where communications are “directly connected with the supply or transfer of goods, services, opportunities and gifts … solicitations of donations etc”. This may include a brand’s own website, social channels, “affiliated” or “advertorial” posts published by influencers, and online review sites where content has been adopted by the brand. Rules on transparency and disclosure are particularly important in social media advertising; advertisers must clearly indicate when a post is a “paid promotion” and where there is any kind of commercial relationship.

Advertisers must also comply with the platform’s own terms of use.

Advertisers will be responsible for third-party content appearing on their own channels where they have invited, adopted or promoted such content, or have moderated such content (eg, by filtering out negative feedback) other than for removing harmful or offensive content. This may also apply where the advertiser has interacted with or adopted content on third-party platforms (eg, online review sites). In that case, the advertiser must ensure that the content complies with the Codes and other relevant laws as if it were its own content

Where an advertiser uses third-party content without permission, the owner may take action against the advertiser for copyright or trade mark infringement and/or passing off.

The CAP Code requires that any paid promotion or endorsement on social media must be clearly and prominently disclosed and must not mislead consumers. Appropriate labels are required even in space-constrained advertisements like those on X, TikTok or Instagram. Labels such as #ad must be positioned so that they are visible to consumers before they engage with the content.

Where a brand is running a sales or prize promotion online or in social media, or making a pricing or other claim, the ASA will still require the disclosure of exclusions, and restrictions or key terms that could influence a consumer’s engagement with or understanding of such promotion or claim, with links provided to full T&Cs.

Unlike some jurisdictions, there are no laws prohibiting access to any of the major social media platforms in the UK. However, social media platforms themselves are subject to certain rules and requirements that aim to prevent the spreading of harmful speech and disinformation online and the abuse of market power by large online platforms, including obligations under the OSA.

Advertisers must ensure that their use of social media platforms complies with the law and the CAP Code in the usual way and with the platforms’ own terms of use.

Influencer/creator campaigns are subject to the same advertising rules and consumer protection laws as traditional media advertisements. Influencers and Brands are responsible for disclosing where there is a commercial relationship with the brand (ie, they have received payment or other incentive in return for promoting its products). Where the influencer/creator is employed by or owns (in full or in part) the brand being promoted, this must be clearly labelled so that consumers understand the nature of the relationship.

ASA and CMA guidance recommends the use of “#ad”, and considers that tags such as “#spon”, “#sponsored” and #gifted” do not sufficiently indicate a commercial relationship. Labelling must be prominent and clearly visible to the consumer before engagement with content, not hidden in the content or at the end of a long list of hashtags. The ASA publishes a “Non-Compliant Social Media Influencers” list to publicly shame influencers who repeatedly breach the rules, and the CMA has conducted investigations and required binding undertakings from repeat offenders.

Both advertisers and influencers/creators may be liable for content posted on the advertiser’s behalf. The ASA has made it clear that advertisers have a duty to monitor influencer/creator content to ensure compliance, and brands cannot avoid liability by claiming that influencers/creators acted independently.

Consumer testimonials and endorsements in advertising are regulated under the DMCCA and the CAP Code.

Ads must not feature testimonials without the author’s permission, and. advertisers must disclose where an incentive has been given. Consumers should not be incentivised to provide positive reviews and marketers are prohibited from suppressing genuine negative reviews. The CMA has cracked down on businesses that manipulate online reviews, to ensure transparency. Under the Codes certain categories of products should not be endorsed by celebrities or health professionals (eg, medicines). Advertisers can be liable for misleading consumer reviews if the advertiser adopts, promotes, solicits or moderates that content (other than filtering out offensive/harmful content).

Fake reviews are deemed automatically unfair and illegal under the DMCCA: advertisers must not falsely claim or imply that they are a consumer or outside of their profession.

There are specific rules for email marketing in the UK, mainly governed by the Privacy and Electronic Communications Regulations (PECR) where personal data is processed, the UK GDPR and Data Protection Act 2018, as amended by the Data (Use and Access) Act 2025. The rules differ depending on whether the recipient is an individual or a corporate subscriber.

B2C Marketing

  • Consent: marketers must obtain valid prior consent before sending unsolicited marketing emails to individual subscribers. Consent must be freely given, specific, informed and unambiguous and involve a clear affirmative action.
  • Soft opt-in: where a “soft opt-in” applies, businesses may email existing customers about similar products or services without new consent, provided that the sender obtained the recipient’s details directly during a sale or negotiations for a sale and as long as an easy opt-out (unsubscribe) option is provided in every communication, and customers were given the opportunity to opt out when their details were first collected.
  • Charitable-purpose soft opt-in: Since 5 February 2026, charities may also rely on a separate soft opt-in for marketing that solely furthers their charitable purposes, subject to specified conditions. It applies only where the charity obtained the recipient’s details on or after that date.
  • Opt-out: each marketing email must provide an easy way for recipients to unsubscribe from future emails and ensure they can withdraw consent at any time, usually provided by a simple unsubscribe link.
  • Identification: the sender’s identity must be clear, and contact information must be provided in each email, allowing recipients to know who is contacting them.

B2B Marketing

  • Consent: unsolicited marketing emails may generally be sent to corporate subscribers without consent or reliance on a soft opt-in. However, sole traders and certain partnerships are treated as individual subscribers and are subject to the individual-subscriber rules. Emails should be relevant to the recipient’s professional role.
  • Opt-out: as with B2C, businesses must provide a simple opt-out mechanism. Marketing must stop where an individual exercises their right to object.
  • Identification: the sender must clearly identify themselves and provide contact details.

In addition to compliance with PECR, the processing of personal data must comply with the UK GDPR: data controllers must have a “lawful basis” for processing the data, and comply with approved mechanisms for transferring data outside the UK to countries that are not recognised as approved jurisdictions by the ICO.

Breaches of the UK GDPR can result in fines up to a maximum of GBP17.5 million or 4% of global turnover. From 5 February 2026, the maximum penalties for a breach of PECR were increased from GBP500,000 to the greater of GBP17.5 million or 4% of global turnover (ie, the same as under UK GDPR). Repeated non-compliance can damage a company’s reputation and customer trust, and lead to further legal action or restrictions on communication activities.

Specific rules apply to inbound and outbound telemarketing including live and automated calls under PECR and the UK GDPR. The UK GDPR and Data Protection Act 2018 also apply where personal data is processed. These laws have been amended by the Data (Use and Access) Act 2025.

Outbound Telemarketing (Live Calls)

Unsolicited live marketing calls must not be made to anyone who has opted out under PECR, to individuals registered with the Telephone Preference Service (TPS), or to entities listed on the Corporate Telephone Preference Service (Corporate TPS) without consent. Only authorised firms, trustees or managers of a pension scheme may make pension scheme-related calls if strict criteria are met, such as prior consent.

Automated Calls

Automated marketing calls that play a recorded message can only be made if the individual has specifically consented to receiving automated calls from that caller.

For both live and automated calls, the caller’s number must be displayed to the person being called. During a live call, the caller must identify themselves and, if requested, provide a contact address or freephone number. An automated message must include the caller’s name and a contact address or freephone number.

Inbound Telemarketing

If personal data is collected during an inbound call, businesses must inform individuals of how their data will be used.

Violating these rules can lead to fines by the ICO (see 6.1 Email Marketing). This applies particularly to unauthorised automated calls or calling individuals who have opted out via the TPS. In January 2024, the ICO fined two home improvement companies GBP250,000 (combined) for calling individuals registered with the TPS and concealing their identity.

Since the term “electronic mail” is defined broadly in PECR and encompasses various forms of electronic communication, including text/SMS messaging, the information outlined in 6.1 Email Marketing applies equally to text/SMS messaging.

Targeted or interest-based advertising, particularly through the use of consumer data, is regulated by the UK GDPR and PECR (as amended by the Data Use and Access Act 2005). Advertisers must be transparent about the data they collect and how it is used, and give consumers the option to opt-out of targeted ads. The use of cookies and tracking technologies generally requires prior, valid consent under PECR unless a statutory exception applies. Failure to comply with these requirements can lead to ICO enforcement action.

The industry widely uses IAB Europe’s voluntary TCF v2.3 (TFC) to communicate transparency, consent and objection signals across the advertising supply chain. It facilitates, but does not guarantee, compliance. In May 2026, the ICO recommended tightly defined legislative exceptions for certain privacy-preserving advertising activities. These are not currently in force. The ICO considers that behavioural advertising involving tracking and profiling should continue to require consent under PECR, and that it is also likely to require consent under the UK GDPR.

Special rules apply to the collection and use of personal information from children, primarily under the UK GDPR and PECR. Where an online service is offered directly to a child under 13 and consent is relied upon, that consent must be given or authorised by a person with parental responsibility and reasonable efforts must be made to verify it.

Children’s data must be processed transparently, using age-appropriate language, and data should be used for specified legitimate purposes only. Under the ICO’s Children’s Code, profiling must generally be off by default unless there is a compelling reason, taking account of the child’s best interests. Any profiling or targeted advertising must be lawful and include appropriate safeguards.

The ASA rules reflect the UK GDPR (see Section 10 of the CAP Code). The usual ASA and ICO sanctions apply (see 6.1 Email Marketing). Section 10 is currently under review following the Data (Use and Access) Act 2025.

In 2023, the ICO fined TikTok GBP12.7 million for breaching the UK GDPR and misusing children’s data including processing the personal data of children under 13 without parental consent and failing to provide information in a sufficiently clear, intelligible and accessible form. The ICO also found that TikTok had failed to make adequate checks to identify and remove underage users or otherwise prevent them from accessing the platform. As at 1 September 2026, TikTok’s substantive appeal against the penalty remained outstanding.

The Data Protection Act 2018 supplements the UK GDPR to ensure that personal data collected during advertising activities is processed lawfully and transparently.

Online tracking remained an ICO priority in 2026. Following its review of the UK’s top 1,000 websites, the ICO reported in April 2026 that 992 (99%) met its cookie-banner compliance checks at the time of their most recent test. The ICO also finalised guidance explaining how PECR and, where relevant, the UK GDPR, apply to cookies, tracking pixels, device fingerprinting and other storage and access technologies, incorporating changes introduced by the DUAA.

The ICO’s guidance on “consent or pay” models also remains relevant. Such models are not prohibited and can comply with data protection law, but organisations must be able to demonstrate that users can freely consent to personalised advertising and that the model otherwise complies with the UK GDPR and PECR. The ICO identifies four factors to be considered in the round: any power imbalance; whether the fee is appropriate; whether the core services offered under the consent and payment options are broadly equivalent; and whether the choices are presented in accordance with privacy-by-design requirements. CAP revised Section 10 of the CAP Code, “Use of data for marketing”, in 2018 to align its marketing-related data rules with the GDPR. In 2026, CAP confirmed that Section 10 was under review to consider the implications of the DUAA. Pending this review, the existing rules remain applicable, but marketers should also comply with the DUAA, and the ASA will have regard to it when applying Section 10.

A chance-based prize draw or sweepstake must comply with certain requirements to not be deemed an illegal lottery under the Gambling Act 2005 (Gambling Act). It must either:

  • be free to enter or have a free entry route; or
  • involve an element of skill, judgement or knowledge which can reasonably be expected to deter a significant proportion of potential entrants or prevent a significant proportion of entrants from winning.

If neither criteria apply, the competition will likely be deemed a lottery and would therefore require a licence. In the absence of such licence, it would be deemed illegal.

Assuming that the promotion is lawful, marketers must also ensure that the competition terms and mechanics comply with CAP Code rules for prize promotions. These require that all significant conditions and restrictions are made clear upfront, that promotions are run fairly (eg, regarding rules changes, entry route and availability of prizes) and that the selection of winners is subject to independent supervision (unless randomly generated by computer). Marketers must not overstate the chances of winning and must anticipate the likely demand for prizes.

There is a voluntary Code of Good Practice for Prize Draw Operators (published in 2025 and updated in 2026). This sets standards for British prize draws covering age and spending controls, consumer protection, responsible advertising, accessible free-entry routes, transparency and fair winner selection. It does not replace existing law, but provides a government-backed benchmark for responsible operation.

Pay-to-enter competitions may fall outside of the lottery regulation if they provide an easily accessible free entry route or if they involve an element of skill, judgement or knowledge. The skill, judgement or knowledge element must be sufficiently demanding to deter a “significant proportion” of entrants from entering the competition at all, or from winning a prize. It is a relatively low bar and there are limited instances of the Gambling Commission taking enforcement action under the Gambling Act.

There is no requirement to register games of chance or contests of skill with any regulatory body. However, should such an arrangement be deemed a lottery, a lottery licence would need to be obtained.

Price promotions are an important part of the marketing mix and often a contentious area. They are regulated under the DMCCA and subject to the CAP Code. Additional guidance is provided by the Guidance for Traders on Pricing Practices issued by the Chartered Trading Standards Institute.

Free Offers

If a product or service is offered as “free”, there should not be any hidden charges or any reduction in the usual quality of the product or service. If consumers must pay for anything above the unavoidable cost of responding and collection/delivery, then it should not be offered as “free”. The DMCCA also regulates “subscription traps”, including those offering free trial periods (see 7.5 Automatic Renewal/Continuous Service Offers).

Reduced Price Offers

Reference pricing (eg, “50% “off” or “25% bigger for the same price”) must be genuine, accurate and not misleading. Relevant factors include how long and how recently the higher price was offered, whether significant sales were made at that price, or whether it was otherwise a realistic selling price. CMA guidance published in August 2024 states that the higher price needs to have applied for at least as long as the promotion period and that there must have been a sufficient number of sales at that higher price before the discount period. This guidance relates to particular products but may have more general application.

The CMA has also issued guidance on time-limited (“act now”) and other offers that instil a sense of urgency (“only five left at this price”). Again, generally, all such offers must be genuine and not misleading (and should also not fall foul of rules on social responsibility by, for example, rushing people into making serious decisions with undue haste – eg, laser eye surgery).

Pricing promotions have been the subject of considerable scrutiny by the CMA and action by consumer rights groups such as Which? Marketers planning a price promotion should consult the Chartered Trading Standards Institute, April 2026 Guidance for Traders on Pricing Practices and CAP’s guidance on promotional savings claims. The CMA’s price-transparency guidance should also be considered, particularly where the offer involves mandatory charges or periodic pricing.

Contract renewal practices must comply with the DMCCA and the CAP Code, and are subject to specific laws under the CCR.

Businesses must already provide clear pre-contract information about matters including pricing, billing periods, contract duration, automatic renewal and termination conditions. Marketing must not omit material information such as automatic renewal, the price payable after a free or discounted trial, or significant cancellation restrictions.

The DMCCA contains a dedicated subscription-contract regime which is expected to come into force in January 2027. Once implemented, it will introduce mandatory pre-contract information, renewal reminders, straightforward cancellation – including online cancellation where the consumer subscribed online – and additional 14-day cooling-off rights following certain renewals, including after free or discounted trials.

There are currently no specific laws regarding the use of AI in the development of advertising content. However, existing advertising, consumer-protection, intellectual-property, confidentiality, data protection, privacy and defamation rules apply. Risks may arise from using protected, confidential or personal information to train or prompt AI systems, and from outputs that infringe rights, misuse a person’s likeness or mislead consumers.

CAP has confirmed that the existing advertising rules apply regardless of whether content is created by humans or AI. Advertisers remain responsible for AI-generated or automatically distributed ads, including their accuracy, social responsibility and targeting. There is no blanket requirement to label AI-generated advertising, but disclosure may be necessary where its omission would mislead consumers, and disclosure cannot cure an otherwise misleading advertisement. CAP published guidance in June 2026 advising advertisers on the use of AI generated content.

Advertisers in the UK looking to advertise in the EU will need to be mindful of, and take into account, the EU AI Act which does have transparency obligations in certain situations.

There are no specific regulations regarding claims that a product is developed through the use of AI, powered by AI or has AI-related capabilities.

These claims are governed principally by the ordinary rules against misleading advertising and unfair commercial practices. The ASA has expressly confirmed that, unless and until AI-specific legislation is introduced, it will apply the existing CAP and BCAP Codes to advertisements for AI products.

The CMA’s 2026 guidance states that businesses must not overstate either the role of AI in providing a service or what the AI can and cannot do. Businesses should also clearly identify an AI agent where consumers might otherwise believe that they are interacting with a real person and that distinction could affect their decisions.

The EU AI Act does not form part of UK domestic law, although it may apply directly to UK businesses operating in the EU. Its transparency requirements include informing individuals when they are interacting with certain AI systems and identifying specified AI-generated or manipulated content; they do not impose a blanket requirement to label all AI-generated content and would need to be considered on a case-by-case basis.

There are no special rules or guidance related to the use of chatbots in advertising, but the general requirements and principles of transparency and fairness under the CAP and BCAP Codes and consumer-protection law apply, and the ASA/CAP and CMA have published relevant guidance on AI assistants and agents. Advertisers should ensure that consumers understand they are interacting with a chatbot rather than a human, particularly when the chatbot is used for promotional purposes and where failing to do so could mislead them or materially affect their decisions. Chatbots that collect personal data must comply with the UK GDPR and the Data Protection Act 2018, ensuring that, among other things, users are informed about how their data will be used and stored.

The advertising, marketing and sale of cryptocurrency and NFTs in the UK is subject to regulation by both the FCA and the ASA. Most fungible crypto-assets now fall within the FCA’s financial promotion regime pursuant to the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (FPO), with strict requirements on prominent risk warnings, a 24-hour cooling-off period for first time investors and bans on incentives such as “refer-a-friend”, as these products are often considered high-risk investments. The CAP Code continues to apply alongside FCA oversight, especially to brand presentation and non-qualifying crypto-assets. NFT advertising remains primarily within the ASA’s remit unless the NFT is itself a regulated investment.

CAP Code Rule 3.3 requires that ads must not omit or hide material information that the consumer needs to make an informed decision, nor present it in an unclear, unintelligible, ambiguous or untimely manner, and the ASA has adjudicated against companies which fail to meet these requirements.

There are currently no specific regulations governing advertising within the metaverse, but general advertising rules under the CAP Code remain the primary framework. All the usual standards – truthfulness, transparency and clear labelling of ads therefore apply whether an ad appears on a VR headset, inside a 3D game world or on a traditional screen. The DMCCA, UK data protection laws and Online Safety Act may also apply, depending on the circumstances.

Whilst the initial metaverse buzz may have cooled since its peak in 2022, immersive tech is increasingly being adopted for brand activations and shopping experiences. The ASA has indicated that it will continue to monitor how ads are presented in this virtual space, to ensure they meet the same standards with special attention to targeting ads to children or misleading consumers with virtual promotions. For now, however, there are no proposals to supplement the existing codes with specific metaverse provisions.

Certain products are subject to stricter advertising regulations in the UK, such as food, drugs, medical devices, alcohol, vaping/tobacco products and cannabis.

Food advertising must comply with applicable food-information and nutrition and health-claims legislation. In Great Britain, only authorised nutrition and health claims listed in the Great Britain Nutrition and Health Claims Register (including its relevant annex) may be used, subject to applicable conditions and limited exceptions; EU rules continue to apply in Northern Ireland.

Food and drink determined to be high in fat, salt or sugar (HFSS) using the Government’s nutrient profile test are subject to restrictions under the advertising Codes and should not be targeted at or appeal to children. Since 5th January 2026, advertising “less-healthy” HFSS products (those which are both HFSS and fall within one of 13 specific categories) has been banned in paid-for online advertising (including influencer marketing) and on television and Ofcom-regulated, on-demand services between 5.30am and 9pm. There are some exemptions for small businesses (broadly, an enterprise employing fewer than 250 people), and for brand advertising that does not depict an identifiable, specific less-healthy product, but the existing HFSS regime is still applicable to all advertisers in all media covered by the advertising Codes.

Advertisements for medicinal products are regulated by the MHRA under the Human Medicines Regulations 2012 as well as the CAP and BCAP Codes (as applicable).

Vaping and tobacco products are subject to strict legislated advertising restrictions under the Tobacco and Related Products Regulations 2016, as well as under the CAP Code, particularly in relation to protecting children. The Regulations prohibit the advertising of nicotine-containing electronic cigarettes (e-cigarettes), which are not licensed as medicines, in some media channels. The Tobacco and Vapes Act 2026 received Royal Assent on 29 April 2026, but its comprehensive restrictions on advertising and sponsorship of vaping and other nicotine products have not yet commenced; the Government intends to bring them into force on 1 June 2027 through secondary legislation.

Alcohol advertising is subject to the Codes and the Portman Group Code (enforced against its members), with renewed emphasis on digital influencer marketing and age-verification.

Product placement on UK television and on-demand programme services is regulated by the Communications Act 2003 and the Ofcom Broadcasting Code (Section 9). These rules were originally derived from the EU Audiovisual Media Services Directive (Directive 2010/13/EU, as amended), but, since Brexit, the UK’s product placement regime is governed entirely by domestic legislation and the Ofcom Broadcasting Code. The rules set out how products may be placed in television and on-demand programming. Product placement must be transparent and must not mislead viewers. Products cannot be placed in certain types of programming, such as children’s programmes and news and current affairs programmes, and must not promote harmful or inappropriate products.

Viewers must be informed about product placement through the universal product placement logo (“P” logo). The logo must be displayed for a minimum of three seconds at the beginning and end of any programme containing product placement, and for a minimum of three seconds when the programme resumes after each advertising break.

Since Brexit, Ofcom has updated its guidance to confirm that the product placement rules in the Ofcom Broadcasting Code apply to regulated on-demand programme services. 

The CAP Code contains additional requirements for advertisers in certain sectors, including financial products, gambling services and cosmetic treatments. Financial promotions are governed by the Financial Services and Markets Act 2000, the Financial Promotion Order 2005 and applicable FCA rules, including the requirement that promotions be fair, clear and not misleading. Advertisements for gambling services are governed by the Gambling Act 2005, Gambling Commission licence conditions and the CAP and BCAP Codes. Cosmetic treatments that involve surgical procedures must comply with the CAP Code and ASA guidance, which require advertisers to ensure that claims about the effectiveness and safety of treatments are not harmful or misleading and are socially responsible. Advertising prescription-only medicines is prohibited to the general public (CAP Code Section 12).

Lee & Thompson LLP

80 Charlotte Street
London
W1T 4DR
UK

+44 203 073 7600

dominicbray@leeandthompson.com www.leeandthompson.com
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Lee & Thompson is one of the UK’s leading law firms for the creative industries. Its dedicated advertising law group advises on campaign strategy, commercial contracts, dispute resolution, IP, media buying strategies, adtech, media sales representation, regulatory compliance, talent/content acquisition, employment/HR, data protection/privacy and investments/M&A. The firm advises national and international brands, global advertising groups (including two “big four” agencies), world-leading PR and communications groups, and some of the largest ad-funded publishers and advertising sales houses, as well as individual talent, start-ups and technology platforms. Its standing in the industry is reflected in its relationship with the Data and Marketing Association (DMA), for which Lee & Thompson runs a legal advice service, and the Alliance of Independent Agencies (AIA), for which it runs a legal advice and pitch protection service and numerous training initiatives for member agencies, including the legal module of their Diploma in Marketing Communications.

For the UK advertising and marketing industry, 2026 has seen regulatory reform start to translate into operational reality. New restrictions on advertising less healthy food and drink that is high in fat, salt, and sugar came into force and the ASA has published several rulings illustrating the scope and effect of the new rules; the ICO clarified the limited circumstances in which cookies and similar tracking technologies may be used without consent under the Data (Use and Access) Act 2025; and the CMA took enforcement action against drip pricing as a result of the new powers granted to it under the Digital Markets, Competition and Consumers Act 2024 (DMCCA).

Attention is now turning to 2027, when continued proactive enforcement action by the ASA and the CMA is likely. With increased government focus on cost-of-living pressures, the DMCCA’s new subscription-contract regime will come into force earlier than anticipated, introducing stricter requirements around pre-contract information, renewal reminders, cooling-off rights and cancellation.

The CMA’s Focus on Fake Reviews

Since 6 April 2025, it has been illegal for online platforms to: (i) host, commission or incentivise fake reviews; (ii) conceal incentivised reviews; and (iii) publish consumer reviews with without taking reasonable and proportionate steps to prevent and remove fake or misleading content.

In 2026, as part of its crackdown on fake and misleading reviews, the CMA launched new investigations into five companies: Autotrader, Feefo, Dignity, Just Eat and Pasta Evangelists. These investigations follow earlier action requiring Google and Amazon to strengthen their systems for detecting and removing fake reviews, and are a reminder to brands, agencies, retailers and online platforms that review campaigns and review-moderation systems should be treated as a core consumer-law compliance issue rather than simply matters of marketing practice.

The CMA’s Focus on Illegal Drip-Pricing Activities

The CMA has remained true to its word that it would treat the rules on drip pricing as an early enforcement issue. In 2025, it launched investigations into eight companies, and, in 2026, it took its first enforcement actions against the AA and StubHub UK. It fined the AA GBP4.2 million, as well as ordering it to refund more than GBP760,000 to learner drivers after a mandatory GBP3 booking fee was not included in upfront prices. The CMA fined StubHub UK almost GBP900,000 and required it to repay more than GBP590,000 to ticket buyers after it found that the company did not show fans the total price upfront when purchasing tickets. Both companies acted quickly and engaged constructively with the CMA throughout the investigations and, as a result, received a 40% reduction in their respective fines.

These decisions send clear messages to advertisers and retailers that unavoidable charges must be incorporated into headline prices from the beginning of the consumer purchasing journey.

To help businesses comply with these laws, the CMA has issued a Clear Pricing Campaign and published Guidance.

Subscription Traps

The new subscription-contract regime under the Digital Markets, Competition and Consumers Act 2024 (DMCCA) will now come into force in January 2027, some months earlier than originally tabled. The earlier implementation was announced by the Prime Minister on 10 August 2026 as part of his roll-out of “everyday fixes” to ease cost-of-living pressures.

The DMCCA provides new rights for consumers so that they have clear information before they sign up to a subscription and receive regular reminders, particularly before trials or auto-renewal of 12-month-plus contracts. Traders must also ensure that it is straightforward for subscribers to exit contracts, with the right to exit online if they signed up online, and must provide a 14-day cooling-off period after a trial or a 12-month-plus contract auto-renewal (during which the consumer can cancel without penalty).

Non-compliance may expose traders to consumer claims and enforcement under the DMCCA, including penalties of up to 10% of worldwide annual turnover.

Advertising Rules for Less Healthy Food

In January 2026, amendments to the Communications Act 2003 came into force, banning the advertisement of “less healthy” products on TV between 5.30am and 9pm and online at any time, if targeted at UK users and supported by ad spend. “Less healthy” products are those which fall within one of the 13 statutory product categories and are classified as high fat, salt or sugar (“HFSS”) items under the Government’s nutrient profiling model.

The rules have been incorporated into the CAP and BCAP Codes, and there has been a steady stream of rulings from the ASA since April 2026 with complaints against Lidl, Iceland, Amazon Fresh, Mars, Morley’s, Domino’s, and YO! Sushi, upheld or partially upheld for featuring identifiable less healthy products in their campaigns. The rulings confirm that a product may be identified through its name, appearance, colours, shape or brand characters.

Secondary legislation in the form of the Advertising (Less Healthy Food and Drink (Brand Advertising Exemption) Regulations 2025 continue to provide workarounds for brands, although advertisers relying on the brand exemption will need to assess the overall impression of the creative carefully. Generic brand imagery may lose the exemption if consumers can reasonably identify it as depicting a specific less healthy product.

While the rules will not apply to advertising by or for smaller businesses with less than 250 employees, the existing CAP and BCAP regulations prohibiting, among other things, HFSS advertising targeted, or appealing, to children will still apply to all businesses regardless of size.

Clamping Down on the Advertisement of Weight-Loss Prescription-Only Medicines

In April 2026, the ASA published new consumer research alongside a CAP Enforcement Report on how weight-loss prescription-only medicines are being promoted to the public and the steps the ASA is taking to protect consumers. Using its AI-driven Active Ad Monitoring system, the ASA captured and assessed tens of thousands of weight-loss ads and identified around 900 ads likely to breach the rules, with the most common problems including: naming a prescription-only medicine – eg, Wegovy, Mounjaro or Ozempic; advertisers using descriptors clearly understood as references to prescription-only medicine such as “weight-loss injection”, “pen”, “jab” or “GLP1”; and ads featuring images of branded injection pens.

A series of 2026 rulings also confirms the ASA’s continued focus in this area. In February, the ASA upheld challenges against two influencer/affiliate ads that expressly promoted Mounjaro. In July, it ruled against Phlo Technologies and Morrisons after an ad for Morrisons Clinic led, through a filtering page, to pages referring to injectable weight-loss pens Mounjaro and Wegovy – even though the initial ad did not name a medicine.

Disclosure of the Use of AI in Advertising

In May 2025, the Committee of Advertising Practice (CAP) published guidance on disclosing the use of AI in advertising, confirming that the CAP and BCAP Codes (Codes) do not contain AI-specific rules but apply regardless of how an advertisement is generated, edited or targeted. It considered that AI was not, at that stage, creating unique issues requiring changes to the Codes.

CAP noted that advertisers have long used CGI and other post-production techniques without routinely disclosing them. Similarly, using AI to make minor or non-material alterations will not necessarily make an ad misleading or require disclosure.

However, under existing rules, disclosure may be necessary where failing to reveal the use of AI would materially mislead consumers – eg, where a realistic virtual influencer might be mistaken for a real person, or a deepfake appears to show a genuine endorsement. However, it should be noted that disclosure alone cannot remedy an ad that is fundamentally misleading, such as an AI-generated image exaggerating a cosmetic product’s results.

CAP reaffirmed its position in June 2026, confirming that the Codes remain media-neutral, meaning that the rules apply regardless of how the content is created.

For UK advertisers looking to advertise in the EU, a significant development is the implementation of Article 50 EU AI Act on 2 August 2026. Where the Act applies, it introduces specific transparency requirements relating to AI-generated or manipulated content, including machine-readable marking by certain AI providers and disclosure by deployers of deepfakes and certain AI-generated public-interest text.

Green Claims – Misleading Green Claims Remain Firmly on the CMA and ASA Enforcement Agendas

Misleading green claims remain a priority for both the CMA and the ASA. In 2026, the ASA upheld environmental-claims investigations against Adidas for implying that its running shoes were made entirely from recycled materials, and against Eurowings and Qatar Airways for suggesting that consumers could fully offset the emissions from their flights.

To help businesses comply with the relevant Code rules, as of 30 July 2026 the ASA has updated its Guidance, setting out the key principles which advertisers should consider when making environmental claims, including how claims are likely to be understood, the evidence needed to support them, and the importance of presenting environmental information clearly and responsibly.

UK Brands advertising in the EU will also need to comply with European legislation, including the Directive on Empowering Consumers for the Green Transition (EmpCo) in force from 27 September 2026. EmpCo prohibits, among other things, unsupported generic environmental claims, unapproved sustainability labels, and claims that a product has a neutral, reduced or positive greenhouse-gas impact where that claim is based on carbon offsetting. Advertisers in the EU will need to substantiate claims, disclose them publicly, and clarify whether they rely on offsetting to support their environmental statements.

ASA Guidance on the Portrayal of Older and Vulnerable People

In June 2025, the ASA published research into the portrayal of older people in advertising. The research found widespread concern that older people are underrepresented or negatively stereotyped in advertising, particularly through portrayals of loneliness, helplessness and a lack of purpose, as well as via humour at their expense.

As a response to the ASA research, in July 2026, CAP published updated Offence Age Guidance. The advice outlines that ads which mock, humiliate or degrade older people, or reinforce offensive stereotypes, are likely to be considered problematic, and that advertisers should carefully consider the language and imagery used in their advertising.

Rightsholder Actions for Use of Unlicensed Music on Social Platforms

Due to the continued use of AI scanning tools, 2026 saw a significant increase in action taken by music rightsholders against brands for the use of music used in social posts without the correct licensing in place.

Most social platforms make music available to be added to non-commercial, personal posts, although brand marketing teams, influencers, content creators and agencies may not have realised that this music is not always available for commercial use.

Master rights – the rights in the original recording of the track – and publishing rights – the underlying copyright in the musical score and lyrics – must be cleared and licensed for synchronisation with the brand content. If it is found that these rights were not correctly secured, or that usage continued after the relevant licence had expired, rightsholders may look at all infringing usage occurring within the preceding six years and seek appropriate damages.

We expect this pattern of escalating claims to continue into 2027, and it underlines the importance for brands to carefully audit and monitor both historical and new online content to ensure that all music usage has been correctly cleared and licensed or that music attached to older posts is changed if the applicable licence has expired.

Fraudulent Advertising Duties Under the Osa Take Shape

On 10 July 2026, Ofcom published its register of categorised services under the Online Safety Act 2023 (OSA) and launched a consultation on draft Fraudulent Advertising Codes of Practice for Category 1 and Category 2A services. The consultation closes on 2 October 2026, with Ofcom aiming to publish final codes by mid-2027, after which enforcement will follow.

The categorisation thresholds, set by secondary legislation in early 2025, are based on UK user numbers and whether a service uses a content recommender system or allows users to share content. Eleven services have been designated Category 1 (including Facebook, Instagram, TikTok, Snapchat and X), and a small number as Category 2A (including Google Search and Bing).

Both Category 1 and 2A services will be subject to binding duties to tackle paid-for advertising that amounts to a specified fraud offence. Providers will have to implement proportionate systems and processes to prevent users from encountering fraudulent ads, minimise how long such ads remain live, and remove them swiftly once identified.

The draft codes propose nearly 40 measures, including stronger ad-account verification, robust reporting mechanisms, governance and compliance systems, and testing of AI ad-generation tools to reduce the risk of misuse. A further consultation on the use of proactive technology to filter fraudulent ads at source is expected in autumn 2026.

Advertisers should anticipate stricter onboarding checks from platforms and increased pressure to provide non-infringement warranties and indemnities. Non-compliance by regulated services could attract fines of up to GBP18 million or 10% of qualifying worldwide revenue, whichever is greater.

Practical Benefits for Brands of DUAA Reforms May Be Limited

All data protection provisions under the Data (Use and Access) Act 2025 (DUAA) are now in force. The principal reforms affecting the UK GDPR, the Data Protection Act 2018 and the Privacy and Electronic Communications Regulations (PECR) took effect on 5 February 2026, although the new requirements for controllers to operate data-protection complaints procedures commenced later, on 19 June 2026. Although the reforms provide greater flexibility in some areas, the practical benefits may be limited, particularly for brands operating in both the UK and EU.

The reforms include new exceptions allowing certain cookies and similar technologies to be used without consent. These include technologies used solely to collect statistical information about how a website or online service is used, with a view to improving it, and technologies used solely to improve or adapt the appearance or functionality of a service. These exceptions are subject to conditions, including providing clear and comprehensive information and a simple, free means of objecting. The statistical exception does not permit individual tracking or profiling and generally requires the resulting information to be aggregated statistical information.

In practice, their value may be limited: consent remains necessary for advertising cookies and analytics cookies that do not satisfy the conditions of the exception, while any benefit may be outweighed by the operational challenges of adopting different consent mechanisms across the UK and EU markets.

At the same time, the DUAA has brought PECR’s enforcement regime broadly into line with the UK GDPR. The maximum fine for serious PECR infringements has increased from GBP500,000 to UK GDPR levels (the higher of GBP17.5 million or 4% of the undertaking’s worldwide annual turnover). Brands should therefore remain cautious when using the new exceptions, particularly as cookies, online advertising and direct marketing remain areas of regulatory attention.

ICO Recommends New PECR Exceptions for Lower-Risk Online Advertising

The UK’s Information Commissioner’s Office (ICO) has recommended that the government introduce further exceptions to PECR’s consent requirements for certain lower-risk online advertising activities.

The ICO’s 2025 call for views on its approach to regulating online advertising considered whether a risk-based approach to enforcing Regulation 6 of PECR (which requires users to be given clear information about cookies and, unless an exception applies, to consent to their use) could allow certain low-risk advertising activities to take place without consent.

The responses received indicated that users considered that behavioural advertising, particularly advertising involving tracking across services, should require consent but that they were generally more comfortable with limited first-party advertising based on activity within the service being used, especially where information was not shared with third parties, although views varied according to the nature of the information and the safeguards applied.

In May 2026, the ICO reported its preferred approach to the Department for Science, Innovation and Technology, which would, if implemented in legislation, allow specified advertising functions to take place without Regulation 6 consent within a predominantly publisher-controlled, first-party framework. The proposal would restrict the information that could be used, the purposes for which it could be processed and the circumstances in which identifiable information could be made available to third parties. Limited third-party participation – including certain measurement, verification and technical functions – and restricted use of programmatic systems could remain possible. Behavioural advertising would continue to require consent.

While potentially a sign of things to come, the ICO’s recommendations do not themselves change the law. Existing PECR consent requirements therefore continue to apply.

Conclusion

As advertising regulation tightens, businesses must take a proactive approach to compliance. Increased CMA and ASA monitoring and enforcement, evolving rules on influencers, cookies, greenwashing and subscriptions, and growing UK-EU divergence mean brands must manage regulatory risks while remaining prepared for future changes. The music industry’s focus on unlicensed use of rights in social media campaigns is an area of concern for brands and agencies, who must now act quickly to avoid costly claims.

Lee & Thompson LLP

80 Charlotte Street
London
W1T 4DR
UK

+44 203 073 7600

dominicbray@leeandthompson.com www.leeandthompson.com
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Law and Practice

Authors



Lee & Thompson is one of the UK’s leading law firms for the creative industries. Its dedicated advertising law group advises on campaign strategy, commercial contracts, dispute resolution, IP, media buying strategies, adtech, media sales representation, regulatory compliance, talent/content acquisition, employment/HR, data protection/privacy and investments/M&A. The firm advises national and international brands, global advertising groups (including two “big four” agencies), world-leading PR and communications groups, and some of the largest ad-funded publishers and advertising sales houses, as well as individual talent, start-ups and technology platforms. Its standing in the industry is reflected in its relationship with the Data and Marketing Association (DMA), for which Lee & Thompson runs a legal advice service, and the Alliance of Independent Agencies (AIA), for which it runs a legal advice and pitch protection service and numerous training initiatives for member agencies, including the legal module of their Diploma in Marketing Communications.

Trends and Developments

Authors



Lee & Thompson is one of the UK’s leading law firms for the creative industries. Its dedicated advertising law group advises on campaign strategy, commercial contracts, dispute resolution, IP, media buying strategies, adtech, media sales representation, regulatory compliance, talent/content acquisition, employment/HR, data protection/privacy and investments/M&A. The firm advises national and international brands, global advertising groups (including two “big four” agencies), world-leading PR and communications groups, and some of the largest ad-funded publishers and advertising sales houses, as well as individual talent, start-ups and technology platforms. Its standing in the industry is reflected in its relationship with the Data and Marketing Association (DMA), for which Lee & Thompson runs a legal advice service, and the Alliance of Independent Agencies (AIA), for which it runs a legal advice and pitch protection service and numerous training initiatives for member agencies, including the legal module of their Diploma in Marketing Communications.

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