Influencer Marketing Agreements: Your Brand's UK Legal Guide
Influencer marketing agreements
Influencer partnerships can propel your products in front of millions, but a single undisclosed #ad or off-message post can trigger serious consequences in the UK. Without a legally robust contract, your brand is vulnerable to ASA rulings, CMA investigations, and a reputational dip that takes far longer to fix than to cause.
An airtight influencer marketing agreement is your essential first line of defence. It sets the ground rules on content, disclosure, and brand safety before your campaign goes live.
This comprehensive guide is written for founders, marketing leaders, and in-house counsel who need practical, legally sound contracts for the UK market. We'll show you how to satisfy the CAP Code, UK consumer protection law, and even the latest FCA rules for financial promotions. Learn how to define deliverables, manage content approval, secure your IP rights, and build in clear compliance obligations to protect your brand from regulatory scrutiny.
Ready to secure your next UK campaign? Our expert team specialises in drafting and negotiating bespoke influencer agreements that protect your brand, manage risk, and keep regulators happy.
Why Brands Need Influencer Marketing Agreements in the UK
If you're tapping into the power of influencer marketing to promote your brand, products, or services, the key question is: Do you have a legally binding influencer marketing agreement in place?
While influencers can be powerful brand advocates, leveraging their personal brand to reach millions, your business needs a robust influencer contract as a vital safeguard. Here’s why every brand, regardless of the influencer's follower count, needs one:
Brand Protection & Control: An influencer's actions can directly impact your brand image. A legally binding agreement gives you contractual control, helping to ensure a positive association and providing legal remedies if the influencer's actions or content are damaging or off-message.
Clear Expectations & Risk Mitigation: Any commercial transaction involving money, deadlines, and brand promotion requires a formal contract. A well-drafted influencer agreement defines deliverables, payment terms, and duties, which minimises the risk of misunderstandings and costly disputes. It also provides a clear exit mechanism if a partnership isn't working out.
Ensuring UK Regulatory Compliance: Failing to meet UK advertising standards can directly harm your brand and expose your business to liability. An influencer agreement is your tool to ensure compliance with the ASA and CMA regulations, protecting you from public rulings, enforcement action, and significant reputational damage.
Investing in an influencer agreement is not just about protection; it's about building a professional, clear foundation for a successful and compliant partnership.
What is the UK legal and regulatory framework for influencer marketing?
Influencer marketing in the UK is regulated by:
In the UK, influencer marketing is governed by a robust self-regulatory system. The two primary bodies you need to know are:
The Advertising Standards Authority (ASA): The UK's independent advertising regulator. The ASA is responsible for ensuring that all adverts, including influencer marketing content, comply with the Advertising Codes. They handle complaints and enforce compliance.
The Committee of Advertising Practice (CAP): This is the sister organization to the ASA. CAP is responsible for writing and maintaining the UK Advertising Codes, including the comprehensive CAP Code that sets the rules for non-broadcast advertising.
The relevant regulations and codes are:
The Consumer Protection from Unfair Trading Regulations 2008 (CPR)
The UK Code of Non-broadcast Advertising and Direct & Promotional Marketing (CAP Code)
In addition to the above, the Financial Conduct Authority (FCA) provides guidance and sets expectations for firms and influencers about financial promotions on social media.
This guidance is reinforced through:
The Consumer Duty that mandates financial firms must ensure their products and services deliver good outcomes and fair value for consumers.
The Financial Services and Markets Act 2023 (FSMA 2023) and the Financial Promotions Gateway through which authorised persons must pass before they can approve the financial promotions of unauthorised persons. This aims to ensure that financial promotions are properly vetted and approved by authorised firms, enhancing consumer protection by preventing misleading or harmful financial advertising.
Learn more about why a robust influencer agreement is your brand's best defense against regulatory fines and reputation damage.
Why is the influencer regulatory framework important for brands?
Some businesses mistakenly assume that if an influencer breaches the UK legal and regulatory framework for social media marketing, the consequences fall solely on the influencer. This is a costly misconception.
Under UK law, brands are equally responsible for ensuring that all paid partnerships are transparently and clearly disclosed. The ASA (Advertising Standards Authority) has made it clear that both influencers and the brands that pay them are targeted to ensure compliance.
Regulatory scrutiny has intensified as influencer marketing has grown. The number of complaints about influencers has risen significantly, with the ASA receiving over 3,500 complaints about potential non-disclosure in 2024 alone. A recent ASA report found that over two-fifths (43%) of influencer ads were either undisclosed or improperly disclosed, highlighting a widespread issue.
The consequences of non-compliance are severe for brands, including:
ASA rulings that are publicly published and can lead to significant reputational damage.
CMA investigations under the Consumer Protection from Unfair Trading Regulations.
Financial penalties and fines, especially with the CMA's enhanced enforcement powers under the new Digital Markets, Competition and Consumers Act 2024.
Don't risk your brand's reputation and financial stability. A robust influencer agreement is your proactive defence against these regulatory challenges. Ready to build your legal shield? Don't risk your brand's reputation and finances.
Book a Free Consultation with our Influencer Contract Specialists
The ASA carried out a three-week monitoring exercise in September 2020 to examine the Instagram accounts of a number of influencers residing in the UK to determine whether or not their social media posts qualified as advertising. The ASA exercise came to the conclusion that there was a lack of adherence to the regulations requiring transparency when influencers are compensated by brands to endorse goods or services. In a March 2021 report on ‘Influencer Ad Disclosure on Social Media’, the ASA found that:
“Influencers were using historical posts to show that they were connected to a product, rather than making it clear in each post that the content was advertising for a brand. Each post should make it clear on a standalone basis if it contains advertising.
If a post refers to an advertisement, then the advert label has to be clearly visible. For example, the post font and information about the advertiser should not be in the same or similar colour to make the advert wording difficult to read.
The use of # and the brand name isn’t sufficient to advise social media users that content is paid for advertising.”
The ASA has made it unequivocally clear: sanctions apply to both influencers and the brands that pay for their services. A brand is held just as responsible as the influencer for failing to properly disclose advertising content.
Continued poor practices lead to serious consequences. In its latest reports on influencer ad disclosure, the ASA reiterated its commitment to targeted enforcement, finding that a significant percentage of influencer ads are still undisclosed or improperly disclosed. This is a stark warning to businesses that non-compliance remains a widespread issue.
A major reason why the UK influencer regulatory framework is so crucial for brands is that the ASA publishes its rulings and findings. This transparency can lead to significant reputational damage, with brands and influencers being publicly named on the ASA's list of non-compliant advertisers. Beyond public shaming, persistent breaches can lead to stronger sanctions, including targeted platform ads to warn consumers about non-compliant accounts, and referral to statutory bodies like the CMA, who now have enhanced powers to impose hefty fines under the Digital Markets, Competition and Consumers Act. An example is the non-compliant online advertisers page featured on the ASA/ CAP website.
Don't assume your brand is immune from regulatory attention. Ensuring your influencers comply with all regulations is a non-negotiable part of safeguarding your brand's reputation and financial stability. Let’s chat.
What are the key regulatory points for brands using influencers to market their brand?
The 2008 Consumer Protection from Unfair Trading Regulations' main features include the following:
The use of paid-for promotional material without the advertiser making it clear that the material is an advert.
The use of false claims or the creation of the impression that the trader isn’t acting for purposes relating to their business.
The false representation of a business as a consumer.
The key points of the UK Code of Non-broadcast Advertising and Direct & Promotional Marketing Code (The CAP Code) are that it requires social media marketing communications to:
Be identifiable as advertising.
To not mislead.
To make it clear that the influencer is acting commercially and not as a consumer.
Key points from the rules and guidance from the Financial Conduct Authority are that each financial promotion must:
Be either communicated by an authorised person or its content is approved by an authorised person.
Be fair, clear, and not misleading.
Be compliant as a standalone advert, despite limited space on some social media platforms.
Have the right balance and contain appropriate risk warnings.
Provide customers with sufficient information to make informed, timely, and effective decisions.
Mandatory FCA Oversight & Monitoring
For any firm communicating financial promotions, including through finfluencers and affiliates, the FCA requires robust monitoring and oversight systems. You cannot simply approve a promotion once and assume compliance. The FCA expects you to take proactive responsibility for the content communicated by your affiliates. This includes having systems in place to ensure influencers understand their responsibilities and do not post illegal or non-compliant content.
The FCA has recently increased its scrutiny, and firms are "on the hook" for all promotions they make or "cause to be made." This means that any breach by an influencer could result in regulatory enforcement action against the affiliated firm.
Cross-Border Compliance: The FCA's Global Reach
A crucial aspect of the FCA's rules is their global reach. The regulations cover communications made outside the UK if they are capable of having an effect within the UK.
This means that if an influencer based in another country targets UK customers with a financial promotion (e.g., in English, using UK references, or through platforms popular in the UK), that promotion must comply with all relevant UK financial promotion rules, including the requirement for approval by an authorized person.
This demonstrates why a comprehensive influencer marketing agreement is vital—it must explicitly extend compliance obligations and monitoring requirements to all campaigns, regardless of where the influencer or content is based.
What should be included in an influencer marketing agreement?
To properly protect your business and brand, your influencer marketing agreement must be comprehensive. A generic online template won't be enough. Here are the essential clauses your bespoke contract should cover:
1. Defined Deliverables (Scope of Work)
Your contract must clearly define the services to be provided by the influencer. Be specific about every deliverable, including:
Platforms: Which social media channels will be used? (e.g., Instagram, TikTok, YouTube).
Content Type: What format will the content take? (e.g., 3 Instagram Reels, 5 Stories, 1 YouTube video).
Frequency & Timing: How often should posts be made and when?
A detailed scope of work reduces the risk of misunderstandings and potential commercial disputes.
2. Content Control & Approval Rights
While authenticity is key, your brand's reputation is paramount. Your contract should include provisions for content control, such as:
Brand Guidelines: Require the influencer to adhere to your brand's key messaging, tone, and visual identity.
Pre-approval Process: Specify which content requires your review and approval before publication.
Take-down Triggers: Include a clear clause that enables you to demand the immediate deletion of content that is off-message or non-compliant with regulations.
3. Exclusivity & Competitor Promotion
Protect the value of your partnership by including an exclusivity clause. This should clearly define:
Competitor Brands: Set out a clear list of competitors the influencer cannot promote.
Exclusivity Period: Specify the duration of the restriction, both during and for a set period after the agreement ends.
4. Intellectual Property (IP) Ownership
IP rights are central to any creator collaboration. Your agreement must clarify who owns the content created for the campaign.
Content Ownership: State whether your brand owns the copyright to the content or if the influencer retains it.
License to Use: If the influencer retains ownership, ensure your brand is granted a broad, irrevocable license to use, modify, and repurpose the content across your own marketing channels (e.g., website, ads, email).
5. Access to Data & Analytics
To measure the success of your campaign, ensure your influencer agreement grants you access to the influencer's performance data and analytics. This allows you to track key metrics like engagement, reach, and conversions.
6. Morality Clause & Brand Reputation
Protect your brand from reputational damage with a robust morality clause. This clause should:
Define Unacceptable Conduct: Clearly spell out brand values and prohibit actions that could reflect negatively on your business (e.g., controversial comments, illegal behaviour).
Provide an Exit: Grant your brand the right to terminate the agreement and cease association with the influencer if their conduct is deemed damaging.
7. Advertising & Regulatory Compliance
This is a critical section for UK brands. The contract must explicitly obligate the influencer to comply with all relevant regulations, including the CAP Code and FCA guidance. Non-compliance can lead to severe consequences for both parties.
8. Payment & Compensation Terms
Be precise about payment. A well-drafted clause should detail:
Payment Structure: Is it a flat fee, per post, or performance-based?
Payment Schedule: When and how will the influencer be paid?
In-kind Compensation: If you are providing products or services, detail their value and nature.
9. Confidentiality
To protect sensitive information about your business, products, or campaign strategies, your influencer agreement should include a confidentiality clause with specified consequences for a breach.
10. Termination Rights
Clear termination clauses are essential. Your agreement should outline the circumstances for ending the contract, especially in cases of regulatory breach, failure to perform, or a morality clause violation. This protects your brand and provides a clear exit mechanism.
For Contract Drafters: Take Your Agreements from Good to Great
A basic template won't cut it in today's complex regulatory landscape. The difference between a standard contract and a truly robust one can be measured in brand reputation, compliance, and thousands in potential fines.
If you are a brand manager, in-house counsel, or commercial law solicitor responsible for drafting influencer agreements, you need to be ahead of the curve. Our detailed guide goes beyond the basics to cover nuanced legal considerations, from defining exclusivity and IP rights to navigating complex cross-border jurisdiction clauses.
Don't settle for standard templates. Arm yourself with the knowledge to draft bespoke, watertight agreements that protect your client's interests and stand up to regulatory scrutiny.
Dive Deeper: Crafting Influencer Agreements - Key Considerations for Contract Drafters
Influencer advertising – the key tips for brands
When drafting your influencer marketing agreement, a key consideration is the level of control you require over content before it goes live. While pre-approving every post is the safest way to prevent brand damage, it can stifle the spontaneity that makes influencer content so effective.
Here's how to strike the right balance:
Implement a Flexible Approval Workflow: Instead of a blanket pre-approval rule, define which types of content require review and which don't. For example, a contract might require pre-approval for all main feed posts but allow 'likes' and 'shares' without prior consent. This approach maintains creative flow while protecting your brand on high-stakes deliverables.
Establish Clear Brand Guidelines: Provide influencers with a clear, concise brief that outlines your brand's values, key messaging, and any visual or tonal requirements. A well-written brief can significantly reduce the need for multiple revisions.
Mandatory Pre-Approval for Financial Promotions: This is a non-negotiable legal requirement under FCA rules. For any content promoting financial products or services, the agreement must stipulate that the content is approved by an FCA-authorised person before publication. This is a crucial step to avoid severe legal penalties.
The Golden Rule of Influencer Compliance
The single most important tip for brands is to ensure that the influencer is fully educated on their compliance obligations. Your influencer agreement should not only list the rules but also confirm that the influencer understands them and the serious consequences of a breach.
The CMA has issued guidance aimed at influencers on compliance with consumer law and issued a guide jointly with the ASA, called An Influencer’s Guide to making clear that ads are ads. These guides highlight the responsibilities of influencers and brands and the protection provided to consumers.
At the heart of the UK's influencer and advertising regulations is a single, non-negotiable requirement: both influencers and brands must be completely transparent about sponsored content.
1. Obvious and Apparent Advertising
An advert must be self-evidently an advert. If a consumer has to question whether a post is sponsored, it is likely not compliant. The commercial nature of the content must be immediately clear without the user needing to click "see more" or scroll. Hiding disclosure is not only non-compliant but also erodes consumer trust.
2. Clear and Upfront Disclosure Labels
It is no longer sufficient for an influencer to vaguely mention a brand in their bio or use ambiguous hashtags. The ASA and CMA strongly recommend using "Ad" or "#Ad" as the primary disclosure label, positioned clearly at the very beginning of the post caption. Ambiguous labels like "gifted," "supported by," or "in association with" are often deemed insufficient as they fail to convey the commercial relationship.
3. Honesty in Production and Visual Claims
Advertising content must not be misleading, even through visual manipulation. Brands and influencers must be careful with post-production techniques, filters, and photoshopping. To try and help both influencers and brands, CAP has issued guidance Beauty and Cosmetics: The use of production techniques.
4. The Need for a Systematic Monitoring Approach
Even with a robust contract, mistakes happen. Brands must adopt a systematic approach to monitoring influencer content to ensure ongoing compliance. By using tracking systems and data analysis, brands can proactively identify and address potential breaches before a regulatory complaint is filed. The ASA has increased its monitoring efforts using AI-driven systems, making it more likely that non-compliant posts will be caught.
Be Warned: The regulators have made it clear that they are intensifying their efforts. Recent ASA reports indicate that compliance rates for influencer ad disclosure are still not high enough, leading to a redoubled commitment to monitoring and enforcement.
Secure Your Brand’s Influencer Marketing Strategy
Getting influencer marketing right is about more than just follower counts; it's about setting clear expectations, protecting your brand identity, and staying ahead of the complex UK legal and regulatory requirements.
Whether you're engaging an influencer for a retail brand campaign or promoting financial products subject to FCA oversight, a bespoke influencer marketing agreement is non-negotiable. It provides the essential legal foundation for commercial clarity and regulatory compliance.
At LegalLens, our specialised team works with fast-growing brands across the UK to negotiate and draft bespoke influencer agreements that reflect the dynamic realities of online promotion. For regulated businesses, our financial services solicitors ensure your influencer activity meets the rigorous demands of the FSMA, the Consumer Duty, and the latest FCA guidance on financial promotions.
With enhanced enforcement powers under the new Digital Markets, Competition and Consumers Act (DMCC) 2024, the risks of non-compliance are higher than ever. Don't leave your brand exposed. Get in touch with our specialists today to ensure your influencer marketing approach is legally sound, strategically aligned, and reputationally secure.
Contact our team to draft your bespoke influencer agreement today.
Influencer Marketing Legal FAQs
1. What is the key difference between the ASA and the CMA in UK influencer marketing regulation?
While both the ASA (Advertising Standards Authority) and the CMA (Competition and Markets Authority) are key UK regulators, they have different roles. The ASA is the UK's independent advertising regulator, responsible for writing (via CAP) and enforcing the CAP Code. It handles complaints about ads and publishes rulings. The CMA is the UK's competition and consumer protection authority, which enforces broader consumer protection laws like the Consumer Protection from Unfair Trading Regulations. The ASA often refers persistent or serious breaches to the CMA for further investigation, which can lead to legal action and significant fines under the new Digital Markets, Competition and Consumers Act. In short, the ASA handles advertising standards, while the CMA enforces consumer law.
2. Why is a simple #ad or #sponsored hashtag not always enough for proper disclosure?
According to guidance from the ASA and CAP, simply using a hashtag like #ad may not be sufficient on its own. The core principle is that the ad must be "obvious and apparent" from the moment the user sees it. This means the disclosure must be:
Prominent: Placed at the very beginning of the caption, not hidden in a long block of hashtags or at the end of a post.
Unambiguous: Clear to all users, regardless of platform. Vague terms like "in partnership with" or "supported by" may not clearly signal a paid relationship to the average consumer.
Visible on all devices: The disclosure must be visible in a user's feed without having to click "see more." Therefore, even with a hashtag, the way it is implemented can lead to a regulatory breach if it is not immediately clear to the audience.
3. If an influencer is based outside the UK, do they still need to comply with UK advertising rules?
Yes, absolutely. The FCA's rules, in particular, apply to financial promotions made outside the UK if they are intended to have an effect within the UK (e.g., targeting UK customers). While the ASA and CMA primarily focus on UK-based advertising, they can and do take action against non-UK influencers and brands if the content is directed at a UK audience. A brand is held equally responsible for an influencer's non-compliance, regardless of where the influencer is based. This is why a comprehensive influencer marketing agreement is crucial—it must extend compliance obligations and monitoring requirements to all campaigns, regardless of the influencer's location, to protect your brand from legal and reputational risks.