ASA's Latest Warning: Is Your Influencer Marketing Truly Compliant?

Is Your Influencer Marketing Truly Compliant?

The Advertising Standards Authority (ASA) has once again shone a spotlight on influencer marketing transparency in the UK. On 9 May 2025, the ASA published its latest influencer ad disclosure report, scrutinising how well influencers are adhering to the rules on making their social media posts clearly identifiable as advertisements.

Using its advanced Artificial Intelligence (AI)-driven Active Ad Monitoring system, the ASA meticulously analysed over 50,000 social media posts from 509 UK accounts and 390 individual influencers across Instagram and TikTok. A representative sample was also manually assessed by ASA experts.

While the report indicated some improvement in ad disclosure rates since its last major study in 2021, the overall compliance level remains lower than the ASA expects. This signals a clear need for further, targeted enforcement action by the regulator. The ASA's findings are a clear call to action for brands. Don't risk your reputation or face regulatory scrutiny.

Critical Reminders for Brands and Influencers

The ASA's latest report is a crucial reminder that transparency in influencer marketing is non-negotiable. Beyond the statistics, the regulator re-emphasised several fundamental principles that all parties in the advertising supply chain—brands, influencers, and agencies—must adhere to. Compliance isn't just about avoiding sanctions; it's about building and maintaining consumer trust.

1. Shared Accountability: Everyone is on the Hook

A common misconception is that the burden of disclosure falls solely on the influencer. The ASA and CMA have consistently debunked this, making it unequivocally clear that all parties are equally accountable. Brands cannot outsource their legal responsibilities. This means:

• Brands' Due Diligence: Businesses must implement robust processes to ensure their influencers understand and adhere to UK advertising regulations. This includes providing clear guidelines, appropriate training, and regular monitoring.

• Agencies' Role: Marketing agencies facilitating campaigns also share responsibility for compliance. They should advise both brands and influencers on best practices and ensure contracts reflect these obligations.

• Influencer Responsibility: Influencers, as creators of the content, must actively ensure their commercial relationships are transparently communicated to their audience.

The ASA strongly advises using platform-specific ad disclosure tools (e.g., Instagram's "Paid Partnership" tag, TikTok's "Commercial Content Disclosure") in conjunction with other methods, as these tools can help automate and standardise disclosure.

2. "Ad" First and Foremost: Unambiguous Disclosure

The most critical takeaway is the demand for unambiguous and upfront disclosure. Ads must be "immediately identifiable as ads". This means:

• Prominent Placement: The disclosure, ideally "Ad" or "#Ad", must be at the very beginning of the social media post caption, visible without clicking "see more" or scrolling. It should also be clearly visible in video content (e.g., on-screen text, verbal mention at the start and periodically).

• Clear Language: Vague or subtle terms are no longer sufficient. Terms like "gifted," "PR trip," "supported by," "in association with," "spon," or "collab" do not adequately convey the commercial nature of the content on their own. While an influencer might want to specify the type of commercial relationship, the primary "Ad" label must always come first (e.g., "Ad – Gifted," "#ad – PR trip").

• Platform-Specific Nuances: While the general principles apply across platforms, brands and influencers should be aware of platform-specific features and best practices for disclosure (e.g., Instagram Stories disclosures overlaid directly on the visual, repeating verbal disclosures in live streams).

3. Disclosure on Every Piece of Content: No Shortcuts

Brands and influencers cannot rely on a single disclosure (e.g., in an influencer's bio, on their website, or in previous posts) to cover multiple pieces of advertising content. Each individual piece of advertising content – whether a photo, Reel, Story, TikTok video, or a carousel post – must be clearly and distinctly disclosed as an ad. This includes content where an influencer is earning a commission via affiliate links; those specific links and the commercial nature of the content around them need to be disclosed.

4. Own Brand Content: The Nuance of Personal Promotion

When an influencer is promoting their own brand or products, the rules can be slightly nuanced. The ASA may deem disclosure "clear by context" if the content unequivocally states that the influencer is promoting their own business. For example, if the brand name matches the influencer's account name, it might be considered clearer.

However, if there's any potential for ambiguity, or if the brand name isn't immediately associated with the influencer, an explicit "Ad" disclosure is still strongly recommended to avoid misleading consumers. This ensures that followers clearly understand when an influencer is acting in a commercial capacity for their own venture, rather than giving an unbiased personal opinion.

By understanding and rigorously applying these fundamental principles, brands can proactively mitigate regulatory risks, build stronger consumer trust, and ensure their influencer marketing campaigns are not just impactful, but also fully compliant with UK advertising standards. The world of UK influencer marketing and advertising regulations is constantly evolving. Staying informed is crucial for safeguarding your brand. If you found this insight into the ASA's latest findings valuable, we invite you to explore our extensive library of articles. LegalLens provides clear, actionable guidance on a wide range of topics, from consumer protection laws to data privacy in digital marketing.

Why This Matters to Your Brand: Increased Scrutiny and Evolving Landscape

The issue of influencer ad disclosure is not confined to the UK; it's a critical, high-priority concern for regulators worldwide. The European Commission’s "fitness check" of EU consumer law has repeatedly highlighted a pervasive lack of transparency in social selling and influencer marketing as a significant problem. This global push for transparency is culminating in new legislation like the upcoming Digital Fairness Act, expected mid-2026, which will introduce even tougher oversight and clearer definitions for commercial relationships in digital marketing.

The ASA's recent report, published in May 2025, while showing some slight improvement, underscores that compliance levels remain unsatisfactory. This signals a clear escalation in the ASA's commitment to enforcement. Coupled with the CMA’s significantly enhanced enforcement powers under the Digital Markets, Competition and Consumers Act (DMCC) 2024, UK brands face unprecedented risks for non-compliance. These risks now include:

• Public Rulings and "Name and Shame" Campaigns: The ASA regularly publishes detailed rulings on its website, publicly naming both non-compliant brands and influencers. This acts as a powerful deterrent, damaging reputations and eroding consumer trust. The ASA has also demonstrated its willingness to run targeted ads against persistent rule-breaking influencers, directly informing their audience of non-compliance.

• Severe Reputational Damage: Beyond formal rulings, social media backlash and negative press from undisclosed or misleading content can cause irreparable harm to your brand image. In an age where authenticity is paramount, transparency failures can quickly lead to widespread consumer distrust and a decline in brand loyalty.

• CMA Investigations and Substantial Fines: Under the DMCC Act 2024, which came into force in April 2025, the CMA now has direct powers to impose significant financial penalties without needing a court order. For serious or persistent breaches of consumer protection law (including misleading advertising and hidden ads), businesses can face fines of up to 10% of their annual global turnover or a fixed penalty of up to £300,000, whichever is higher. Daily fines for continued non-compliance can also be imposed. This represents a monumental shift, making proactive compliance absolutely essential.

• Legal Action and Individual Accountability: Persistent non-compliance can lead to legal proceedings, and importantly, individuals within a company (such as directors or senior executives) can be held personally liable for breaches, potentially facing fines or even criminal prosecution in severe cases.

The ASA's increasing focus on "intermediary parties" in the advertising supply chain—which critically includes influencers, but also extends to platforms and agencies—further underscores the urgent need for brands to have robust compliance systems and legally sound influencer marketing agreements in place. It's no longer sufficient to simply brief an influencer; brands must actively monitor and enforce compliance.

Don't wait for a complaint or a formal investigation to act. Proactive compliance is your brand's strongest defence against these escalating regulatory pressures and the associated financial and reputational fallout.

Ready to ensure your influencer marketing strategy is watertight and compliant? Our expert commercial law consultants specialise in UK influencer agreements and advertising compliance.

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Influencer Marketing Legal FAQs

1. What are the main legal consequences for brands if an influencer fails to disclose an ad in the UK?

If an influencer fails to properly disclose an advertisement in the UK, the consequences for the brand can be severe and far-reaching. The ASA (Advertising Standards Authority) regularly publishes findings, explicitly naming both the influencer and the brand, leading to significant reputational damage and erosion of consumer trust. Beyond public rulings, serious or persistent breaches can be referred to the CMA (Competition and Markets Authority). Under the Digital Markets, Competition and Consumers Act (DMCC) 2024, the CMA now has direct powers to impose substantial financial penalties without needing a court order. These CMA fines can be up to 10% of a business's annual global turnover or a fixed penalty of up to £300,000, whichever is higher, for breaches of consumer protection law (including misleading advertising and hidden ads). In severe cases, legal proceedings and even criminal charges, particularly for financial promotions, can be brought against both the influencer and individuals within the brand.

2. Is using terms like "gifted" or "PR trip" sufficient for disclosing commercial content in the UK?

No, according to the ASA and CMA guidance, terms like "gifted," "PR trip," "supported by," or "in association with" are not sufficient on their own to clearly disclose commercial content. The fundamental requirement is that advertising must be "obvious and apparent" to the average consumer. These terms often fail to unequivocally signal a paid commercial relationship. Both regulators strongly recommend using clear and upfront labels like "Ad" or "#Ad" at the very beginning of social media posts. If an influencer wishes to specify the nature of the commercial relationship (e.g., that a product was gifted), "Ad" must still come first (e.g., "Ad – Gifted" or "#ad – prtrip"). Relying on ambiguous terminology or disclosures hidden in bios or at the end of captions significantly increases the risk of non-compliance and regulatory action.

3. How do the FCA's rules impact financial promotions made by influencers, especially those outside the UK?

The FCA (Financial Conduct Authority) has very stringent rules for financial promotions, and these apply equally to content communicated by influencers, often referred to as "finfluencers." Under Section 21 of the Financial Services and Markets Act 2000 (FSMA), it is a criminal offence to communicate an invitation or inducement to engage in investment activity unless: it's communicated by an FCA-authorised person, or its content is approved by an appropriately authorised person, or an exemption applies. This means financial promotions by influencers must always be pre-approved by an FCA-authorised entity.

Crucially, the FCA's rules have global reach. They cover communications made outside the UK if that content is capable of having an effect within the UK (e.g., targeting UK customers). Therefore, an influencer based anywhere in the world promoting a financial product to a UK audience must comply with all relevant UK financial promotion rules. Brands engaging "finfluencers" are held responsible for ensuring this compliance, requiring robust monitoring and oversight systems to avoid severe penalties, including unlimited fines and up to two years' imprisonment.

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