UK Trends and Developments Contributed by: Huw Morris, Dominic Bray, Nick Swimer and Rebecca Coleman, Lee & Thompson LLP
of global turnover for infringements. The CMA has already signalled that hidden fees and fake reviews will be early enforcement priorities. For advertisers and platforms, this raises the stakes considerably, requiring proactive review management and pric - ing transparency. The initial period of guidance and adjustment has now passed, and enforcement will intensify through 2026, making compliance a press - ing concern across the sector. High fat, salt and sugar (HFSS) advertising restrictions New legislation banning HFSS advertising on TV (5.30am–9pm) and online, if targeted at UK users, has been delayed, allowing time for further government consultation. Originally intended to come into force from 1 October 2025, the restrictions will now apply from 5 January 2026. Businesses are asked to com - ply voluntarily with the ban in the interim, and many online platforms, advertisers and broadcasters have announced that they intend to comply in good faith with the restrictions from 1 October 2025. The finan - cial penalties for non-compliance (from January 2026) will be the greater of 5% of turnover (of the relevant brand) or GBP250,000. The rules will not apply to advertising by or for smaller businesses with fewer than 250 employees, but existing CAP and BCAP regulations prohibiting HFSS advertising targeted at or appealing to children, amongst other things, will still apply to all businesses, regardless of size. After much back and forth and confusion in the indus - try, on 10 September 2025 the UK government laid secondary legislation before parliament: the Advertis - ing (Less Healthy Food and Drink) (Brand Advertising Exemption) Regulations 2025 (Exemptions), which exempt “brand advertising” from the HFSS advertis - ing restrictions – a welcome confirmation. The Exemptions come into force on 31 October 2025, relatively swiftly following the voluntary compliance date. The Exemptions define a “brand advertisement” and allow the promotion of a brand or range of prod - ucts, provided they do not show specific unhealthy products or realistic images of them. Brand, company or product range names cannot be used in advertis -
ing if they are identical to an unhealthy product name, unless that brand, company or product range name was already established and in use before 16 July 2025. The Influencer Marketing Code of Conduct and increased transparency on influencer advertising content The Incorporated Society of British Advertisers (ISBA) and the Influencer Marketing Trade Body (IMTB) launched Version 4 of their Influencer Marketing Code of Conduct in November 2024 (Code). The updated Code sets out clear standards for brands, agencies and influencers, with guidance on diversity, equity and inclusion, accessibility, environmental sustainability, health and wellbeing, and the ethical use of virtual influencers and AI. It also addresses the prevention of harm, contracting, measurement and disclosure of advertising. On 9 May 2025, the ASA published its second AI- led review of influencer content, analysing more than 50,000 Instagram and TikTok posts. The review found that around 57% of likely advertisements were clear - ly disclosed, compared with 35% in 2021, but still short of expectations. Fashion and travel were high - lighted as problem sectors, with over half of posts inadequately labelled or undisclosed. In many cases, terms such as “gifted” were used, which regulators do not consider sufficient. The ASA advises influencers, brands and agencies to use clear identifiers such as “Ad” or “#ad” promi - nently on every advertising post, and to make use of platform disclosure tools. Continued failure to comply will attract sanctions. The disclosure rules are rein - forced by the DMCCA 2024, which gives the CMA direct enforcement powers for serious breaches. These powers carry more severe penalties than ASA sanctions and significantly increase compliance risk. Several major brands have already pledged their support for the Code in 2025, including Sainsbury’s, John Lewis, Asda, Domino’s, Estée Lauder, Giffgaff and HSBC.
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