UK Trends and Developments Contributed by: Huw Morris, Dominic Bray, Nick Swimer and Rebecca Coleman, Lee & Thompson LLP
Conclusion As the regulatory framework on digital marketing tight - ens, advertisers will need to remain agile and pro - active in their compliance efforts. With more robust enforcement powers for regulators like the CMA and ASA, in tandem with new rules surrounding influencer marketing, cookie consent, greenwashing and sub - scription transparency, the pressure is on for busi - nesses to avoid risks of reputational damage or incur - ring hefty fines. Furthermore, as we start to see some divergence in approach between the UK and the EU, brands will increasingly need to consider compliance across different regimes when undertaking a region - al campaign. To navigate this evolving landscape, businesses will need to adopt a proactive, strategic approach to compliance, ensuring they not only meet current legal standards but are also prepared for future regulatory changes.
system”), paving the way for additional requirements on categorised service providers under Phase 3. Category 1 services face the heaviest regulatory bur - den, but both Category 1 and 2A services will be sub - ject to binding obligations to tackle fraudulent paid- for advertising that amounts to one or more specified fraud offences. Providers will have to implement “proportionate sys - tems and processes” to prevent exposure to fraudu - lent ads, minimise how long such ads remain live, and remove them swiftly once identified. Proportionality will depend on the severity of harm and the provider’s control over ad placement, and providers must also explain in their terms of service any proactive tech - nologies used to comply with these duties. Ofcom is expected to consult on draft codes of prac - tice in early 2026, setting out detailed, practical com - pliance measures. Enforcement will follow once the codes are finalised, likely in 2027. In the run up, adver - tisers should anticipate stricter onboarding checks from platforms and increased pressure to provide broader non-infringement warranties and indemnities against regulatory fines (which can be up to GBP18 million or 10% of a regulated service’s qualifying glob - al revenue, whichever is greater).
320 CHAMBERS.COM
Powered by FlippingBook