Hidden ads are illegal – The new CMA rules for UK creators
The UK government recently updated its guidance on social media endorsements, and the message is clear – if you are incentivised to post, it is an ad. Period.
At LegalLens, we’re seeing a rise in 'named and shamed' creators who thought a simple #gifted tag was enough. It isn’t. In the eyes of the Competition and Markets Authority (CMA) and the Advertising Standards Authority (ASA), many of the industry's favourite hashtags are actually illegal because they are ambiguous.
Here is the plain English breakdown of the new rules and how to protect your brand from a 'non–compliance' fine.
What actually counts as an 'incentive' in the UK?
There is a common myth in the UK influencer landscape that you only need to use an #ad disclosure if a brand has physically transferred money into your bank account. This is a dangerous misconception that can land you in serious trouble with Trading Standards.
Under the latest CMA guidance for influencers, the definition of 'payment' is much broader than just cash. The law views any form of incentive as a commercial relationship. If you have been 'incentivised' in any way to promote a product, service, or brand, you must label it correctly to stay within consumer protection law.
The social media endorsement guidance defines an incentive as any of the following.
Direct cash payments or commissions – This includes flat fees for a post or affiliate marketing revenue.
Free products or services – Even if you didn't ask for the 'freebie' and it just arrived as a PR haul, posting about it makes it an ad.
Loans, leases, or favourable terms – If a car brand lets you 'borrow' a vehicle for a week, or if you get a discount that isn't available to the general public, that is a commercial incentive.
Invites and PR trips – Free entry to an event, a complimentary hotel stay, or an all-expenses-paid 'work trip' all trigger the requirement for a clear #ad label.
The 'Micro–Influencer' trap
Many creators with smaller platforms believe influencer marketing legal requirements only apply to celebrities or 'big' accounts. This is false. Whether you have 500 followers or 5 million, if you have received a 'freebie' and you post about it, the law applies to you exactly the same.
The Advertising Standards Authority (ASA) does not care about your follower count; they care about whether your audience is being misled. If you give the impression that you are a neutral consumer when you actually received the product for free, you are breaking the law.
The 'Words to Avoid' list – Why your hashtags might be illegal
In the UK creator community, certain hashtags have become 'shorthand' for partnerships. However, the Competition and Markets Authority (CMA) has been incredibly clear: if a label is ambiguous or requires the audience to guess the nature of the relationship, it is non-compliant.
Most influencers trip up here because they use terms that feel 'softer' than a hard advertisement label. But in the eyes of consumer protection law, these terms are too vague and should be avoided entirely:
#gift / #gifted – This is the most common mistake. The CMA views 'gifts' as payment, and using this tag doesn't clearly signal that a commercial incentive was involved.
#aff / #affiliate – Most consumers don't actually know what 'affiliate' means. You cannot assume your audience understands your revenue model.
#collab / #PRTrip – These sound like a partnership between peers, but they fail to clearly state that the content is a paid promotion.
#spon / #sponsored – Even though 'sponsored' sounds official, the Advertising Standards Authority (ASA) has ruled that it is not as clear or as prominent as the word 'Ad'.
'In association with' / 'Made possible by' – These phrases are considered 'marketing speak' and do not satisfy the legal requirement for transparency.
What you should use instead
If you want to stay on the right side of social media law, you need to stop overcomplicating your disclosures. The only labels that the CMA and ASA consider truly 'safe' and 'transparent' are:
#Ad
#Advert
#Advertising
These labels must be prominent, easy to understand, and impossible to miss. This means they shouldn't be hidden at the very end of a long caption or written in a tiny font that matches the colour of your background.
As a content creator, your goal is for your audience to recognise the content as an advertisement before they even start consuming it. If they have to click 'see more' to find the disclosure, you have already failed the ASA compliance test.
The 'No-Scroll' Rule – Making your ad disclosure unavoidable
A common mistake in the UK creator economy is thinking that as long as #Ad is somewhere in the caption, you are safe. That is not the case. The CMA guidance for content creators is very specific: your audience should not have to work to find your disclosure.
If a follower has to click 'see more', scroll down the page, or visit your bio to realise a post is an ad, you are likely in breach of consumer protection law.
Your checklist for a compliant post
To ensure every piece of content meets ASA compliance standards, follow these three non-negotiable rules:
Timely – The disclosure must be visible as soon as the user engages. For static posts, this means #Ad goes at the very beginning of the caption. For podcasts or videos, the disclosure belongs at the start of the content, not tucked away in the credits or the final ten seconds.
Prominent – Don't bury your disclosure in a sea of thirty other hashtags. It needs to stand out. If you are overlaying text on an image or video, don't use a font colour that blends into the background. It must be high-contrast and easy to read on all devices.
Continuous – This is the 'carousel trap'. If you are posting a sequence of Instagram Stories or a carousel, every single slide that contains a promotional message needs its own label. You cannot just label the first slide and assume the audience remembers the rest are ads.
Don't mislead – The 'Genuine Experience' rule
Compliance isn't just about the #Ad label; it’s about the content itself. Under UK advertising codes, your endorsement must be honest.
It is illegal to claim you have used a product if you haven't, or to make unsupported claims about its benefits. If a contract asks you to say a supplement 'cured your fatigue' but you have no medical proof, signing that creator-brand agreement puts you at direct legal risk.
The 'No Filter' mandate for beauty creators
If you are promoting a beauty or skincare product, you need to be especially careful with production techniques. Using a 'smoothing' or 'tanning' filter to demonstrate the effect of a cosmetic is a fast track to an ASA ruling.
The regulator has banned multiple high-profile campaigns where filters exaggerated the efficacy of the product. If the filter makes the product look better than it actually is, it is considered misleading advertising.
Why this matters for your business – Beyond the 'slap on the wrist'
Many creators treat ASA compliance as a suggestion rather than a legal requirement. But the landscape has changed. Non-compliance is no longer just about receiving a polite email from a regulator; it’s a direct threat to your commercial viability.
If you fail to disclose ads, you aren't just breaking 'platform rules'—you are breaching consumer protection law. This can lead to:
Substantial fines from Trading Standards – While the ASA cannot fine you directly, they regularly refer repeat offenders to Trading Standards, who have the power to issue significant financial penalties and even pursue criminal prosecutions.
The ASA 'Name and Shame' list – The regulator maintains a public list of non-compliant social media influencers. Being featured here is a red flag for any reputable brand looking for a brand partnership.
Targeted Sanctions – The ASA has recently escalated its tactics, even running its own targeted ads on Instagram to alert a creator's followers that the account routinely fails to disclose ads.
Contractual Breach – Most modern content creator agreements include a clause requiring you to follow all relevant laws. If you get flagged for a non-compliant post, you could be in breach of your contract, giving the brand a reason to withhold payment or terminate the deal without a kill fee.
Protect your brand with a strategic compliance audit
The rules around social media endorsements are shifting, and the 'I didn't know' defence no longer works. Don’t wait for a formal warning or a referral to Trading Standards to get your house in order.
At LegalLens, we specialise in protecting the business interests of UK creators. We provide 15-minute strategic audit calls to help you:
Review your current disclosure habits – Identifying 'hidden ad' risks before they become legal problems.
Audit your existing contracts – Ensuring your brand partnership contracts include the right indemnity and compliance protections.
Set up a professional protocol – Giving your talent management team a clear checklist for every future campaign.
Taking fifteen minutes to secure your business today is much cheaper than fighting a Trading Standards investigation tomorrow.
Influencer compliance FAQs
Is #gifted enough to comply with UK law?
No. The Competition and Markets Authority (CMA) has explicitly stated that #gifted is too ambiguous. It doesn't clearly communicate that a commercial incentive was involved. To stay compliant, you should use #Ad, #Advert, or #Advertising as your primary label.
Do I need to label 'free' PR stays or event invites as ads?
Yes. Any benefit you receive that isn't available to the general public—including hotel stays, meals, or event tickets—counts as an incentive. If you post about it, the ASA and CMA require a clear and prominent ad disclosure.
Where exactly should the #Ad label be placed?
The disclosure must be 'upfront and prominent'. This means your audience should see it before they engage with the content. For Instagram or TikTok captions, it should be at the very beginning. For videos or podcasts, it must be stated or shown at the start of the content.
Do I have to label every slide in a carousel or story sequence?
Yes. You cannot rely on a single disclosure at the start of a long sequence. If multiple slides in a carousel or story contain promotional messaging, each individual slide must be clearly labelled so that a viewer joining halfway through still knows it is an ad.
Can I be fined for not disclosing an ad?
While the ASA doesn't issue fines directly, they can refer repeat offenders to Trading Standards, who have the power to issue unlimited fines and pursue criminal proceedings under the Consumer Protection from Unfair Trading Regulations. The ASA can also 'name and shame' you on their public non-compliance list.
Do these rules apply if I have a small following?
Follower count is irrelevant to the law. Whether you are a 'micro-influencer' with 500 followers or a celebrity with millions, the influencer marketing legal requirements are exactly the same. If you are incentivised to post, you must disclose it.
Is the 'Paid Partnership' tool on Instagram enough?
Not always. While the ASA encourages using platform tools, they have ruled that these alone are sometimes not prominent enough (for example, if the text is small or lacks contrast). We recommend using the platform tool and adding a clear #Ad label to your caption or overlay to be 100% safe.
Disclaimer
The information provided in this blog post is for general informational and educational purposes only. It is not intended to constitute, and should not be relied upon as, legal, financial, or tax advice. Every influencer partnership and brand campaign is unique, and the legal requirements may vary based on your specific circumstances, jurisdiction, and the nature of the engagement.While we strive to provide accurate and up–to–date information, laws and regulations – particularly those involving the ASA, CMA, and HMRC – are subject to frequent change. We strongly recommend that you consult with a qualified legal professional or a specialist accountant before drafting, signing, or executing any commercial agreements. Use of this website or the information contained herein does not create a lawyer–client relationship between you and LegalLens.