UK Trends and Developments Contributed by: Huw Morris, Dominic Bray, Nick Swimer and Rebecca Coleman, Lee & Thompson LLP
Advertising and Marketing in the UK: An Introduction
DUAA has increased the maximum fines for breaches of PECR from GBP500,000 to GBP17.5 million or 4% of annual global turnover (in line with the GDPR). Enforcement of DMCCA’s subscription provisions The Digital Markets, Competition and Consumers Act 2024 (DMCCA) will fundamentally reshape subscrip - tion advertising, with its main provisions expected by April 2026. Businesses must now conspicuously present “key” pre-contract information, separate from other content, covering payment frequency, auto- renewal terms, trial conditions and clear cancellation processes. Full pre-contract details must also be in a durable format. Promotional messaging and ads must explicitly state auto-renewal, post-trial price increases and easy cancellation, as “subscribe now, worry later” tactics are no longer viable. Timely reminder notices are mandatory before trial expiry or renewal, detailing charges and simple exit instructions. Critically, cancel - ling a subscription must be as easy as signing up, and the DMCCA will ban “dark patterns” that obstruct this. In April 2025, the Competition and Markets Authority (CMA) gained direct powers relating to unfair commer - cial practices, to investigate and levy substantial fines without courts. Penalties can reach GBP300,000 or 10% of annual global turnover, signalling a significant increase in regulatory risk and the need for proactive compliance. Drip pricing and fake review practices to be abolished From 6 April 2025, the DMCCA also prohibits fake reviews and drip pricing. Online platforms are now banned from hosting, commissioning or incentivising fake reviews, and must take reasonable steps to verify the authenticity of those they publish. Similarly, drip pricing practices – where consumers are enticed by a low headline figure only to face unavoidable additional charges at checkout – are unlawful. Businesses must present the total cost upfront, including all taxes, fees and mandatory charges. As with subscriptions, these prohibitions fall under the CMA’s new direct enforcement powers for consumer protection law, allowing the regulator to act without recourse to the courts. Penalties mirror those set out above, with fines of up to GBP300,000 or 10%
This year has proven that the regulatory landscape for advertising and marketing (and digital in particular) shows no sign of slowing down, driven by new legisla - tion, enforcement powers and the increased scrutiny of advertising practices by UK and EU authorities. As we look ahead to 2026, many of these key trends will shape the industry, from the growing use of generative AI in advertising, to the clampdown on unfair advertis - ing practices such as drip-pricing and restrictions on certain consumer goods. As new and existing legisla - tive provisions commence, advertisers and marketers will need to be well advised and fleet of foot in relation to compliance. Relaxations of cookie consent requirements, but PECR likely to remain a regulatory focus The Data (Use and Access) Act 2025 (DUAA) has introduced new exceptions to the cookie consent requirements under the Privacy and Electronic Com - munications Regulations (PECR). Further relaxations may follow, but PECR is expected to remain a regula - tory focus for the UK’s Information Commissioner’s Office (ICO). Regulation 6 of PECR prohibits the use of cookies (and similar technologies) without the individual’s consent, unless they are strictly necessary for the operation of a website. Since the DUAA received Royal Assent on 19 June 2025, the ICO has updated its guidance to reflect three new exceptions, which are themselves unlikely to be significant in relation to advertising (statistical website use, website appearance and geographical data for emergency assistance). However, the ICO has also called for views on its risk-based approach to enforcing PECR in relation to online advertising, particularly the use of low-risk advertising cookies (which do not benefit from any of the current exemptions to Regulation 6) as a potential driver of sector innovation and economic growth. At the same time as looking at a potential new excep - tion for online advertising, the ICO has signalled that it is taking PECR compliance seriously, issuing cookie compliance warnings to organisations in 2025. Brands should therefore remain cautious, particularly as the
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