Advertising & Marketing 2025

Last Updated October 14, 2025

UK

Law and Practice

Authors



Lee & Thompson LLP 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). The BCAP Code is written 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 Act for financial services and products, and the Medicines and Healthcare Products Regulatory Agency (MHRA) for medicines under the Medicines Act.

The use of personal information in marketing communications is regulated by the Information Commissioner’s Office (ICO). The Gambling Commission has regulatory oversight through the Gambling Act 2005 (regarding prize competitions).

Law

There is no codified “marketing and advertising” law in the UK. The applicable framework is a combination of statute and common law relating 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. However, the CPRs 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) and the Privacy in Electronic Communications Regulations (PECR).
  • 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 principal regulatory authority, being responsible for enforcing the Codes and handling complaints from consumers and competitors. It can request (but not compel) the removal or modification of non-compliant advertising and the withdrawal of certain privileges (eg, trading privileges on direct mail). ASA rulings are published weekly, with notable rulings re-published by national and trade press. In practice, the ASA’s principal “power” is the negative publicity associated with such adverse rulings, which can significantly impact brand reputation, especially in relation to misleading advertising or social responsibility.

The ASA publishes a list of repeat offenders and may refer egregious cases to the Competition and Markets Authority (CMA) or Trading Standards bodies, which can investigate and take action against parties that violate consumer protection law (including levying fines).

In April 2025, CAP and BCAP updated the Codes to align with new consumer protections introduced by the DMCCA.

CMA

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

Under the DMCCA, the CMA has additional enforcement powers, with the ability to take direct action and impose penalties of:

  • up to 10% of annual global turnover or up to GBP300,000 for breaches of consumer protection law;
  • up to 5% of turnover or GBP150,000 for breaches of binding undertakings or CMA directions; and
  • up to GBP30,000 for individuals who fail to comply with CMA investigations.

Additional penalties may be imposed for ongoing breaches and for providing misleading information. The CMA may also award affected consumers compensation or rights to cancel.

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

Draft guidance on the new enforcement powers has been published by the government.

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 deceptive advertising published by them or on their behalf (including via affiliate marketing). Other entities involved in the creation or distribution of deceptive advertising may be held responsible, including creative agencies, publishers and affiliates.

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.

Consumer protection law may impose criminal liability on those engaged in misleading marketing practices, including trading companies and responsible directors if they commit or allow a criminal offence to occur.

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. The remit includes online content (unless purely editorial) if it is “directly connected with the supply or transfer of goods, services, opportunities and gifts … solicitations of donations etc”. 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 focuses primarily 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.

Television ads require clearance by Clearcast, which screens scripts and final cuts for compliance with the BCAP Code. Approval is not a guarantee of compliance, meaning advertisers may still be subject to investigation and an adverse ruling by the ASA if the ad is later found to breach the Code.

The Cinema Advertising Association pre-approves cinema ads, and certain categories of radio ads (including for gambling and alcohol products) require approval from Radiocentre before broadcast.

CAP operates a voluntary non-binding pre-publication clearance service.

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).

The BCAP Code requires consent to be obtained before an individual can be featured or referred to in advertising. This is not a strict requirement unless there is an unfair portrayal or implied approval of an advertiser’s product or service.

There are limited (and closed) fair dealing defences to copyright infringement that, 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.

The ASA responds to complaints from consumers and businesses and also acts of its own volition, often focusing on particular industries or practices in response to consumer protection concerns or wider societal issues.

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 to 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 or deceptive advertising. Failure by businesses to deliver on promises made in advertising can also lead to breach of contract claims by consumers. 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 deceptive practices.

Consumers can report breaches of the DMCCA to regulatory bodies like the CMA (see 1.2 Enforcement and Regulatory Authorities). For unfair commercial practices occurring prior to 6 April 2025, private action must be brought under the previous legal framework of the CPRs. New consumer rights of action under the DMCCA will be set out in secondary legislation; until then, consumers must also rely on the CPR regime to bring any claims for breach of the DMCCA. However, private legal action is limited under the CPRs and is difficult in practice, and there is currently no right to damages or compensation (other than through court action).

Consumers can also turn to various ombudsmen services for certain regulated industries. For example, for financial services disputes, 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 (OSA) in 2023, and the DMCCA has attempted to address harmful online choice architecture (see 3.3 Dark Patterns) and other deceptive practices. 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.

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 been vigilant on gender representation following its 2019 ban on harmful gender stereotypes in advertising. In March 2025, the ASA ruled that a Diesel ad breached rules on social responsibility and harm and offence for “sexualising” a celebrity. This continues to be a focus for the ASA, with many complaints upheld in the past year, including in relation to in-game advertising.

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 requiring that such advertising should not appeal to those under the age of 18.

High Fat, Salt and Sugar (HFSS) Foods

In light of concerns regarding obesity, ads promoting HFSS or “less healthy” foods face ongoing scrutiny. Brands have been penalised for placing HFSS ads in content likely to appeal to younger audiences. From 5 January 2026, “junk” food advertising will be banned in paid-for online advertising and on television before the 9pm watershed under changes to the Communications Act 2003. There are some exemptions for small businesses and brand advertising. Much of the industry has agreed to voluntarily implement the ban from 1 October 2025.

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, 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.

The current Labour government has outlined a number of measures it intends to implement in the marketing sphere, particularly relating to public health and safety, including the following:

  • restrictions on “junk” food advertising (see 1.10 Taste and Cultural Concerns);
  • although not yet enacted (and therefore not yet enforceable), the Tobacco and Vapes Bill intends to ban the advertising of any vaping or nicotine products, and is currently expected to come into force in 2027; and
  • an intention to expand regulation of digital advertising, for example by extending the tenure of the Online Advertising Taskforce for a further 12 months in December 2024.

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 they are 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, Trading Standards or the CMA. If a claim cannot be sufficiently substantiated by appropriate evidence, it is likely to be deemed misleading (and therefore a breach of the CAP Code or 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 must 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 (“greener”, “cleaner”, “carbon neutral”, etc) 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 the main message, rather than contradict it.

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 issued rulings against several companies for making unverified claims about their products being “free from” certain ingredients or produced under specific ethical standards.

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 that 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. Guidance sets out that reinforcing these stereotypes may be problematic for advertisers. 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 products are subject to timing and media restrictions, ensuring they are not targeted at or likely to be seen by children (see 1.10 Taste and Cultural Concerns regarding pending tighter restrictions). 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”.

Data protection legislation treats anyone under the age of 13 as a child, and requires processing to:

  • be fair and clear;
  • have a lawful basis; and
  • not exploit children’s vulnerability.

Dark patterns (ie, 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 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), as being 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, where 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 advertising 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 refers specifically to the use of appropriate labels for “advertorial” content, such as “Advertisement Feature”, “Ad”, “Advert”, “Advertising” or “Ad Feature”. Failure to identify or properly disclose an advertorial or piece of native advertising as such would also be automatically unfair under the DMCCA.

Comparative advertising must comply with the Business Protection from Misleading Marketing Regulations 2008 (BPRs), which are reflected in the Codes. 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, mislead 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 unlawful interference.

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).

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, restrictions or key terms that could influence a consumer’s engagement with or understanding of such promotion or claim, with a link to the 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 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”, but consider that tags such as “#spon”, “#sponsored”, “#gifted” and “#in association with” 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) and the UK GDPR. The rules differ depending on whether the communication is business-to-consumer (B2C) or business-to-business (B2B).

B2C Marketing

  • Consent: marketers must obtain explicit opt-in consent before sending emails, except where the so-called “soft opt-in” applies, which allows businesses to email existing customers about similar products or services without new consent, 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.
  • 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: generally, consent is not required for B2B emails, but emails should be relevant to the recipient’s professional role.
  • Opt-out: as with B2C, businesses must provide a simple opt-out mechanism.
  • 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 must 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 of up to GBP17.5 million or 4% of global turnover. With effect from the implementation of the Data (Use and Access) Act in June 2025, 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 the 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 under PECR and the UK GDPR, including live and automated calls.

Outbound Telemarketing (Live Calls)

Live calls must not be made without consent to:

  • anyone who has opted out under PECR;
  • individuals registered with the Telephone Preference Service (TPS); or
  • entities listed on the Corporate Telephone Preference Service (Corporate TPS).

Only authorised firms or trustees may make pension scheme-related calls if strict criteria are met, such as prior consent.

Automated Calls

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

For both live and automated calls, the caller’s number must be displayed to the person being called. The caller must also provide their identity and offer an address or a freephone number for contact purposes if requested.

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. Advertisers must be transparent about the data they collect and how it is used, and must give consumers the option to opt-out of targeted ads. The use of cookies and tracking technologies requires explicit consent. Failure to comply with these requirements can lead to ICO enforcement action.

The industry currently relies heavily on the Interactive Advertising Bureau’s (IAB) Transparency & Consent Framework (TCF) v2.2 – a voluntary tool seeking to facilitate compliance with the GDPR and PECR, particularly by allowing user consents to be passed down the chain via the publishers’ consent management platforms to the various vendors and intermediaries engaged in ad serving, measurement, targeting and media supply.

The IAB was itself deemed to be in breach of the GDPR by the Belgian Data Protection Authority (APD) in 2022. The case was referred to the Court of Justice of the European Union and sent back to the Belgian Court of Appeal, which determined that TC Strings are personal data when they can be connected (directly or indirectly) to identifiers (eg, via IP address or otherwise) in such a way as to allow identification, and that IAB Europe is a joint controller in relation to the creation and use of TC Strings by publishers and vendors. Crucially, the Court rejected the APD’s view that IAB Europe is a joint controller for all downstream processing in the Real-Time Bidding (OpenRTB) ecosystem (eg, when third parties use the TC String or preferences for targeted advertising). It determined that, for processing operations entirely contained within the OpenRTB protocol, IAB Europe has insufficient control (over purposes/means) to be deemed a joint controller. The result is that the TCF continues to serve as the industry’s compliance framework.

The ICO is consulting on a risk-based approach to enforcing PECR in relation to online advertising, particularly the use of low-risk advertising cookies (which do not benefit from any of the current exemptions to Regulation 6) as a potential driver of sector innovation and economic growth.

Special rules apply to the collection and use of personal information from children, primarily under the UK GDPR and PECR. These regulations require businesses to obtain parental consent when collecting data from children under the age of 13. Information must be processed transparently, using age-appropriate language, and data should be used for specified legitimate purposes only. Profiling or targeted marketing to children requires careful consideration to ensure it is appropriate and lawful.

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).

In 2023, the ICO fined TikTok GBP12.7 million for breaching the UK GDPR and misusing children’s data. TikTok failed to take sufficient steps to identify and remove underage children using its platform.

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

In January 2025, having already reviewed the top 200 websites in the UK, the ICO announced its intention to extend its review of cookie usage and compliance to the top 1,000 UK websites to ensure that online tracking gives users clear choices and confidence in relation to how their information is used. The ICO confirmed that it had already communicated concerns to 134 organisations. At the same time, it published guidance on implementing “consent or pay” models where users are given the choice between consenting to personalised ad-tracking or paying in some way (or otherwise a non-tracking alternative). The ICO confirmed that such models need to ensure that the choice is genuine, fairly priced and not coercive.

CAP has completed its consultation on the rules regarding the collection and use of data for marketing, including Online Behavioural Advertising (OBA). As a result, it has introduced updated rules into the CAP Code, including replacing the former Section 10 (“Database Practice”) with a revised Section 10 that also includes the former Appendix 3 on OBA, now in force and renamed “Use of Data in Marketing”. These changes bring the Code into line with the UK GDPR, modernising the regulatory framework for data-driven marketing, strengthening requirements around transparency, valid consent and consumer opt-out mechanisms, and clarifying marketers’ responsibilities for lawfully processing personal data (including through OBA).

A sweepstake (prize competition) must comply with the provisions of the Gambling Act 2005 so as not to be an unlawful lottery. To be a lawful prize competition, it must either:

  • be free to enter or have a free entry route; or
  • involve an element of skill, judgement or knowledge.

If neither criteria apply, the competition will be deemed a lottery and must be licensed.

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.

Pay-to-enter competitions may be lawful 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.

If a competition is deemed to be a lottery, a lottery licence must be obtained. Most prize competitions will not be “lotteries”, in which case there is no requirement for prior approval or registration. Lotteries in the UK must be run for good causes, such as charity, sports or cultural purposes.

Price promotions are an important part of the marketing mix, and this is often a contentious area. Such promotions are regulated under the DMCCA and are 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 accurate and not misleading. The product must have been sold at the higher price for a significant period before the promotion. 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?

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

Businesses must clearly present “key” information to consumers prior to entry into a contract, including the frequency of any payments via auto-renewal mechanisms and the cancellation process. Timely reminders prior to any renewal date clearly stating the amount due upon renewal, any difference from the previous payment and how to cancel are also required. When marketing subscription contracts, businesses must state whether a subscription auto-renews and, if so, under what terms, clarify any post-trial period price increases and articulate how easy the cancellation process is.

There are currently no specific rules or guidance regarding the use of AI in the development of advertising content. Creative concerns relate to inputs (AI models being trained on confidential or IP-protected input data and personal information) and outputs (potential infringement issues). Getty Images’ legal action against Stability AI for use of its images in training its AI model continues.

CAP has stressed that existing advertising rules apply regardless of whether the content was created by humans or machines, and the ASA has issued guidance on the responsible use of AI in advertising, focusing on transparency and the potential for AI-generated content to mislead consumers.

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. EU legislation (the EU AI Act) has established a broad regulatory framework for the development, deployment and use of AI systems to ensure that AI is used safely, in accordance with ethical principles, and in ways that protect fundamental rights and freedoms. A key obligation is transparency: consumers should know when they are interacting with AI systems and if content is generated using AI, which must be clearly stated. Post-Brexit, EU legislation does not have direct effect in the UK, but those principles may be reflected in UK AI legislation. The government has indicated its desire to create an AI-friendly business environment and has received considerable criticism from content owner rights bodies. Debate is ongoing.

There are no special rules or guidance related to the use of chatbots in advertising, but the general principles of transparency and fairness under the CAP Code apply. Advertisers must ensure that consumers understand they are interacting with a chatbot rather than a human, particularly when the chatbot is used for promotional purposes. Chatbots that collect personal data must comply with the UK GDPR, ensuring that users are informed about how their data will be used and stored.

The advertising, marketing and sale of cryptocurrency and NFTs in the UK are 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 in order to make an informed decision, nor present it in an unclear, unintelligible, ambiguous or untimely manner, and the ASA has adjudicated against companies that 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 regarding the 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.

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. Most of these regulations emanate from EU legislation, and since Brexit the UK has generally adopted its own versions of EU legislation. For example, since 1 January 2021, post-Brexit, only authorised health and nutrition claims listed in the Great Britain Nutrition and Health Claims Register may be used in the UK (the EU Register previously applied). The phased ban on paid-for HFSS advertising online and on TV before 9pm is confirmed to start on 5 January 2026, but many in the industry have voluntarily agreed to enact the ban from 1 October 2025.

Advertisements for medicinal products are regulated by the MHRA under the Medicines Act 1968. 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 government’s proposed Tobacco and Vapes Bill would create a “smoke-free generation” by banning tobacco sales to anyone born on or after 1 January 2009 and give powers to restrict vape flavours, packaging and point-of-sale displays. Cannabis products, particularly those containing CBD, must comply with both the Medicines Act 1968 and the Misuse of Drugs Act 1971.

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

Product placement rules derive from the Audiovisual Media Services Directive (2013/10/EU) (AVMS Directive) and are implemented by the UK through amendment to the Communications Act 2003 and the Ofcom Broadcasting Code, setting out rules for how products can be placed in entertainment content on television, radio and “on-demand programme services”. The Ofcom Broadcasting Code ensures that product placement is transparent and does not mislead viewers. Products cannot be placed in certain types of programming, such as children’s, news and current affairs programmes, and must not promote harmful or inappropriate products.

Viewers must be informed about product placement and, accordingly, the “product placement logo” must be shown for three seconds at the beginning and end of the programme, and also shown briefly in the ad break during the programme.

Ofcom has updated and consolidated its guidance to reflect the UK’s post-Brexit position and the 2024 revisions to the AVMS framework, confirming that the Ofcom Broadcasting Code applies to new forms of on-demand and streaming services, and clarifying how product placement rules apply to hybrid and online-only services such as FAST channels and large streaming platforms. Ofcom has also highlighted the need for clear disclosure of commercial arrangements in influencer-led and user-generated content that qualifies as an on-demand programme service, reinforcing that CAP Code rules on paid promotions will continue to apply alongside the Ofcom Broadcasting Code.

The CAP Code contains additional requirements for advertisers in certain sectors, including financial products, gambling services and cosmetic treatments. Financial promotions are regulated by the FCA, while advertisements for gambling services are regulated by the Gambling Commission. 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 under the Medicines Act 1968. Food advertising in the UK must be in line with the Nutrition and Health Claims (Amendment) (EU Exit) Regulations 2020, which limit possible health and nutrition claims to those listed in the Great Britain Nutrition and Health Claims Register.

Lee & Thompson LLP

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Trends and Developments


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Lee & Thompson LLP 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.

Advertising and Marketing in the UK: An Introduction

This year has proven that the regulatory landscape for advertising and marketing (and digital in particular) shows no sign of slowing down, driven by new legislation, enforcement powers and the increased scrutiny of advertising practices by UK and EU authorities. As we look ahead to 2026, many of these key trends will shape the industry, from the growing use of generative AI in advertising, to the clampdown on unfair advertising practices such as drip-pricing and restrictions on certain consumer goods. As new and existing legislative provisions commence, advertisers and marketers will need to be well advised and fleet of foot in relation to compliance.

Relaxations of cookie consent requirements, but PECR likely to remain a regulatory focus

The Data (Use and Access) Act 2025 (DUAA) has introduced new exceptions to the cookie consent requirements under the Privacy and Electronic Communications Regulations (PECR). Further relaxations may follow, but PECR is expected to remain a regulatory focus for the UK’s Information Commissioner’s Office (ICO).

Regulation 6 of PECR prohibits the use of cookies (and similar technologies) without the individual’s consent, unless they are strictly necessary for the operation of a website. Since the DUAA received Royal Assent on 19 June 2025, the ICO has updated its guidance to reflect three new exceptions, which are themselves unlikely to be significant in relation to advertising (statistical website use, website appearance and geographical data for emergency assistance).

However, the ICO has also called for views on its risk-based approach to enforcing PECR in relation to online advertising, particularly the use of low-risk advertising cookies (which do not benefit from any of the current exemptions to Regulation 6) as a potential driver of sector innovation and economic growth.

At the same time as looking at a potential new exception for online advertising, the ICO has signalled that it is taking PECR compliance seriously, issuing cookie compliance warnings to organisations in 2025. Brands should therefore remain cautious, particularly as the DUAA has increased the maximum fines for breaches of PECR from GBP500,000 to GBP17.5 million or 4% of annual global turnover (in line with the GDPR).

Enforcement of DMCCA’s subscription provisions

The Digital Markets, Competition and Consumers Act 2024 (DMCCA) will fundamentally reshape subscription advertising, with its main provisions expected by April 2026. Businesses must now conspicuously present “key” pre-contract information, separate from other content, covering payment frequency, auto-renewal terms, trial conditions and clear cancellation processes. Full pre-contract details must also be in a durable format. Promotional messaging and ads must explicitly state auto-renewal, post-trial price increases and easy cancellation, as “subscribe now, worry later” tactics are no longer viable. Timely reminder notices are mandatory before trial expiry or renewal, detailing charges and simple exit instructions. Critically, cancelling a subscription must be as easy as signing up, and the DMCCA will ban “dark patterns” that obstruct this.

In April 2025, the Competition and Markets Authority (CMA) gained direct powers relating to unfair commercial practices, to investigate and levy substantial fines without courts. Penalties can reach GBP300,000 or 10% of annual global turnover, signalling a significant increase in regulatory risk and the need for proactive compliance.

Drip pricing and fake review practices to be abolished

From 6 April 2025, the DMCCA also prohibits fake reviews and drip pricing. Online platforms are now banned from hosting, commissioning or incentivising fake reviews, and must take reasonable steps to verify the authenticity of those they publish. Similarly, drip pricing practices – where consumers are enticed by a low headline figure only to face unavoidable additional charges at checkout – are unlawful. Businesses must present the total cost upfront, including all taxes, fees and mandatory charges.

As with subscriptions, these prohibitions fall under the CMA’s new direct enforcement powers for consumer protection law, allowing the regulator to act without recourse to the courts. Penalties mirror those set out above, with fines of up to GBP300,000 or 10% of global turnover for infringements. The CMA has already signalled that hidden fees and fake reviews will be early enforcement priorities. For advertisers and platforms, this raises the stakes considerably, requiring proactive review management and pricing transparency. The initial period of guidance and adjustment has now passed, and enforcement will intensify through 2026, making compliance a pressing concern across the sector.

High fat, salt and sugar (HFSS) advertising restrictions

New legislation banning HFSS advertising on TV (5.30am–9pm) and online, if targeted at UK users, has been delayed, allowing time for further government consultation. Originally intended to come into force from 1 October 2025, the restrictions will now apply from 5 January 2026. Businesses are asked to comply voluntarily with the ban in the interim, and many online platforms, advertisers and broadcasters have announced that they intend to comply in good faith with the restrictions from 1 October 2025. The financial penalties for non-compliance (from January 2026) will be the greater of 5% of turnover (of the relevant brand) or GBP250,000.

The rules will not apply to advertising by or for smaller businesses with fewer than 250 employees, but existing CAP and BCAP regulations prohibiting HFSS advertising targeted at or appealing to children, amongst other things, will still apply to all businesses, regardless of size.

After much back and forth and confusion in the industry, on 10 September 2025 the UK government laid secondary legislation before parliament: the Advertising (Less Healthy Food and Drink) (Brand Advertising Exemption) Regulations 2025 (Exemptions), which exempt “brand advertising” from the HFSS advertising restrictions – a welcome confirmation.

The Exemptions come into force on 31 October 2025, relatively swiftly following the voluntary compliance date. The Exemptions define a “brand advertisement” and allow the promotion of a brand or range of products, provided they do not show specific unhealthy products or realistic images of them. Brand, company or product range names cannot be used in advertising if they are identical to an unhealthy product name, unless that brand, company or product range name was already established and in use before 16 July 2025.

The Influencer Marketing Code of Conduct and increased transparency on influencer advertising content

The Incorporated Society of British Advertisers (ISBA) and the Influencer Marketing Trade Body (IMTB) launched Version 4 of their Influencer Marketing Code of Conduct in November 2024 (Code). The updated Code sets out clear standards for brands, agencies and influencers, with guidance on diversity, equity and inclusion, accessibility, environmental sustainability, health and wellbeing, and the ethical use of virtual influencers and AI. It also addresses the prevention of harm, contracting, measurement and disclosure of advertising.

On 9 May 2025, the ASA published its second AI-led review of influencer content, analysing more than 50,000 Instagram and TikTok posts. The review found that around 57% of likely advertisements were clearly disclosed, compared with 35% in 2021, but still short of expectations. Fashion and travel were highlighted as problem sectors, with over half of posts inadequately labelled or undisclosed. In many cases, terms such as “gifted” were used, which regulators do not consider sufficient.

The ASA advises influencers, brands and agencies to use clear identifiers such as “Ad” or “#ad” prominently on every advertising post, and to make use of platform disclosure tools. Continued failure to comply will attract sanctions. The disclosure rules are reinforced by the DMCCA 2024, which gives the CMA direct enforcement powers for serious breaches. These powers carry more severe penalties than ASA sanctions and significantly increase compliance risk.

Several major brands have already pledged their support for the Code in 2025, including Sainsbury’s, John Lewis, Asda, Domino’s, Estée Lauder, Giffgaff and HSBC.

Clamping down on the advertisement of weight loss prescription-only medicines

The Advertising Standards Authority’s (ASA) Enforcement Notice, released on 11 April 2025, confirmed a firm stance on advertising prescription-only medicines (POMs) for weight loss. A POM must be prescribed by a doctor or other authorised health professional, and it must be dispensed from a pharmacy or from another specifically licensed place.

The ASA’s rulings make it clear that even indirect references, such as “weight loss jab” or “slimming pen”, or visuals of injection devices, constitute a breach of the CAP Code. Brand compliance with the explicit naming of POMs in advertising is improving, with the ASA finding a 99% compliance rate, but it also observed widespread indirect advertising – companies using imagery or wording to market POMs without explicitly naming the product.

However, POMs have different regulations applied to them compared to ordinary over-the-counter medicines, which can be freely showcased to consumers, provided that the advertising is accurate and not deceptive.

In 2026, the ASA is likely to continue to see this as a priority focus, particularly regarding repeat offenders, and will place increased focus on social media and influencer-led marketing. Advertisers should note that, under the current rules, there is an absolute ban on advertising POMs to the public.

CAP publishes advice on disclosing AI in advertising

In May 2025, the Committee of Advertising Practices (CAP) published advice on disclosing the use of AI in advertising, in which it says that AI is not yet creating challenges or unique issues that require revisiting the CAP and BCAP Codes (Codes).

CAP notes that the existing Codes continue to apply to content, regardless of how the content is generated, edited or targeted, and points to the fact that advertisers have always engaged in post-production techniques without the need for disclosure and without producing materially misleading content.

While CAP says in its latest guidance that the use of AI in advertising will not necessarily mean that an ad is more misleading than traditional advertisements, it reserves its position in the ever-changing AI landscape.

As the world of AI continues to evolve, it will be interesting to see if CAP’s position holds throughout 2026. Rules in other countries and industry-led guidance and initiatives, such as the Institute of Practitioners in Advertising (IPA) and ISBA’s 12 guiding principles for the use of generative AI, encourage reflection on whether disclosure may be appropriate in certain circumstances.

To avoid misleading customers, CAP recommends that marketers consider two key questions when determining if disclosure is appropriate under the existing Codes.

  • Is the audience likely to be misled if the use of AI is not disclosed?
  • If there is a danger of the audience being misled, is disclosure clarifying the ad’s message or contradicting it?

Accordingly, in this respect, context is key.

Green claims – the UK maintains aggressive greenwashing enforcement

Both the CMA and ASA have prioritised addressing misleading green claims. The ASA is clamping down on misleading ads, while the CMA has developed the Green Claims Code to help businesses verify their environmental claims.

In 2026, the ASA is expected to continue issuing rulings in this area. Furthermore, the CMA can now issue fines of up to 10% of global turnover (under the DMCCA) for companies making misleading environmental claims. Companies engaging in such practices therefore risk reputational damage and substantial fines.

The EU will introduce two key pieces of legislation in respect of this: the Directive on Empowering Consumers for the Green Transition (EmpCo) and the Green Claims Directive. While these do not apply to campaigns in the UK, they impact UK advertisements in the EU and may indicate potential changes to the UK’s regulatory landscape.

EmpCo will ban generic, unsubstantiated claims, such as “environmentally friendly” or “eco-friendly”, and will prohibit environmental claims that refer to an entire product when only part of the product fulfils the claim. It will be in force across the EU by September 2026. The Green Claims Directive will work alongside EmpCo to set clear guidelines for verifying and substantiating environmental claims.

Advertisers in the EU will need to substantiate claims, disclose them publicly, and clarify whether or not they rely on offsetting to support their environmental statements.

ASA guidance on creative harm, representation and vulnerable groups in advertising

The ASA’s strategic priority to provide protection to vulnerable groups is set to crystallise in 2026. New guidance, supported by ASA-commissioned research, is expected to be published early in 2026 and will seek to address harmful portrayals of elderly individuals, such as the use of stereotypes illustrating them as frail, lonely and with a lack of relevance, to show that such stereotypes do not reflect the lived reality of ageing individuals. It also risks misleading impressions being formed, in addition to age discrimination. The ASA is expected to require advertisers to demonstrate a greater inclusivity towards vulnerable groups, ensuring the relevant content is respectful and authentic.

Whilst the ASA has made previous rulings about age discrimination, enforcement is said to commence from July 2026. Advertisers should review any campaign content ahead of this, particularly in areas where age, disability or mental health are core themes, to avoid any complaints once the ASA begins enforcement.

ASA continues to use AI for ad monitoring

The ASA itself is set to continue to ramp up its use of its own AI-powered systems, called “Active Ad Monitoring”, to identity non-compliant ads at scale. It uses its AI system to “identity and act against irresponsible online ads and to provide comprehensive reporting and compliance levels”.

The system captures ads online, uses machine learning to flag potential non-compliance, and directs potentially problematic ads to human experts for review. In 2024, 94% of the 33,903 ads the ASA had amended or withdrawn came out of its use of its Active Ad Monitoring system, and this figure is expected to be maintained or rise for 2025 and 2026.

2026 will see a marked shift toward pre-emptive interventions by the ASA, with its use of AI underpinning faster rulings, earlier interventions and broader market coverage.

Cannes Lions introduces Global Integrity Standards

From 2026, newly introduced “Global Integrity Standards” will be implemented across Cannes Lions and associated awards.

The move follows the high-profile rescission of the 2025 Creative Data Grand Prix after it was revealed that the winning entry, DM9’s “Efficient Way to Pay” campaign, had submitted a case film that included AI-manipulated content designed to mimic authentic news coverage and campaign outcomes.

The Global Integrity Standards are partly informed by OECD AI Principles, Partnership on AI – Synthetic Media Guidelines, and the UNESCO AI Ethics Recommendation, and consist of the following.

  • Ownership and authorship: the business leader of the entrant company and the senior marketer from the commissioning brand must approve of the submission and declare that any case films, written submissions, data and claims are factually accurate, responsibly sourced, and representative of real-world events and outcomes.
  • Veracity of claims: a dual-layer verification system combining manual checks and AI-led analysis will interrogate the veracity of claims made by each entry.
  • Consequences of misrepresentation: entries may be disqualified or awards withdrawn at any stage if any “material misrepresentation” is found. Serious misconduct can result in bans from participating in the awards for up to three years.
  • Due process and oversight: an independent Integrity Council of legal and ethical experts will handle escalated cases, with entrants having the right to respond and appeal.
  • Transparency and governance: Cannes Lions will publish an annual Integrity Audit documenting an overview of concerns.

Hyper-personalisation expected to drive programmatic advertising

In recent years, audience segmentation – where data is leveraged to divide a target audience into smaller groups based on shared characteristics such as browsing behaviour, purchase history and even external factors like weather patterns – has enabled the advertising industry to achieve new levels of precision.

Hyper-personalisation, however, is now widely viewed as the next stage in the evolution of programmatic ad targeting. Techniques such as Dynamic Creative Optimisation (which allows ad creatives to adapt in real time to meet a user’s specific needs) and the use of advanced contextual intelligence to understand the intent behind the content consumption have shown remarkable capabilities for hyper-targeted ad placements.

Hyper-personalisation techniques are expected to become even more sophisticated over 2026, with programmatic systems increasingly able to identify the critical moments when a purchase decision is most likely and integrate relevant advertising at precisely the right time. In the absence of any further cookie consent exemptions under the DUAA and PECR, it is key that advertisers ensure that the use of any new technology remains compliant with the GDPR, and that appropriate consents for any cookies used for hyper-personalisation have been obtained.

UK creative decisions tighten for EU political advertising campaigns

The European Union’s Regulation (EU) 2024/900 on the transparency and targeting of political advertising, which entered into force in April 2024, will apply in full from October 2025. This framework introduces key obligations for political advertisers and service providers, requiring clear identification of sponsors and public disclosure of funding, and imposing strict limits on algorithmic targeting, including a prohibition on the use of sensitive personal data.

Publishers of political advertisements will take on additional responsibilities, such as explicit labelling and contributing to European online repositories. Platforms including Meta have already announced they will stop accepting political, electoral and social issue ads on their EU platforms from early October 2025, citing the impracticality of the new requirements. Breaches of the regulation can result in penalties of up to 6% of annual income or turnover.

Digital services and markets ramp up normalisation across ad stacks

Online platforms have changed their systems and interfaces to meet the requirements of the UK Online Safety Act (OSA) and EU Digital Services Act (DSA).

In 2026, deadlines for implementation of the new rules will continue to pass, so there is likely to be tougher scrutiny, stricter controls and greater downstream contractual requirements and demands on advertisers, as online platforms continue to evolve and change to meet the requirements of the Acts, and as regulators in the UK and across the EU use their enforcement powers to clamp down on non-compliance.

The UK’s regulator, Ofcom, recently published an update on its implementation plans and set out some key milestones for 2026, including the launch of the super-complaint regime and the publication of statutory reports on important issues, such as highly effective age assurance, content harmful to children and app stores.

Regime against fraudulent advertising under OSA will begin to take effect

Phase 3 of the Online Safety Act 2023 (OSA) is expected to roll out in 2026, with the enforcement of duties to prevent fraudulent paid-for advertising likely from early 2027.

Phases 1 and 2 – addressing illegal harms and child protection – concluded in 2025. Secondary legislation passed earlier in 2025 defined the thresholds for Category 1, 2A and 2B services (based primarily on user numbers and the use of a content “recommender system”), paving the way for additional requirements on categorised service providers under Phase 3.

Category 1 services face the heaviest regulatory burden, but both Category 1 and 2A services will be subject to binding obligations to tackle fraudulent paid-for advertising that amounts to one or more specified fraud offences.

Providers will have to implement “proportionate systems and processes” to prevent exposure to fraudulent ads, minimise how long such ads remain live, and remove them swiftly once identified. Proportionality will depend on the severity of harm and the provider’s control over ad placement, and providers must also explain in their terms of service any proactive technologies used to comply with these duties.

Ofcom is expected to consult on draft codes of practice in early 2026, setting out detailed, practical compliance measures. Enforcement will follow once the codes are finalised, likely in 2027. In the run up, advertisers should anticipate stricter onboarding checks from platforms and increased pressure to provide broader non-infringement warranties and indemnities against regulatory fines (which can be up to GBP18 million or 10% of a regulated service’s qualifying global revenue, whichever is greater).

Conclusion

As the regulatory framework on digital marketing tightens, advertisers will need to remain agile and proactive in their compliance efforts. With more robust enforcement powers for regulators like the CMA and ASA, in tandem with new rules surrounding influencer marketing, cookie consent, greenwashing and subscription transparency, the pressure is on for businesses to avoid risks of reputational damage or incurring hefty fines. Furthermore, as we start to see some divergence in approach between the UK and the EU, brands will increasingly need to consider compliance across different regimes when undertaking a regional campaign. To navigate this evolving landscape, businesses will need to adopt a proactive, strategic approach to compliance, ensuring they not only meet current legal standards but are also prepared for future regulatory changes.

Lee & Thompson LLP

80 Charlotte Street
London
W1T 4DR
UK

+44 020 3073 7600

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

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Lee & Thompson LLP 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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Authors



Lee & Thompson LLP 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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