Contributed By Lee & Thompson LLP
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 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.
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:
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:
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:
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:
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
B2B Marketing
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:
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:
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.
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