CMA and ASA publish updated influencer guidance on social-media endorsements

The question

How should influencers and online content creators disclose sponsorships and brand relationships to comply with ASA and CMA rules?

The key takeaway

The ASA and CMA have reiterated that any form of incentivised content - including paid partnerships, gifted items, affiliate links, discount codes or self-promotion - must be clearly and prominently identified as advertising. Ambiguous disclosures, hidden labels or reliance on platform tools that are not sufficiently visible may amount to a breach. The ASA can publicly name non-compliant influencers, and the CMA - now armed with enhanced fining powers under the DMCC Act - may impose substantial penalties for consumer-law infringements.

The background

Influencer marketing remains a high-risk area for consumer-protection enforcement. ASA monitoring has repeatedly shown widespread non-compliance: in some reviews, nearly two-thirds of Instagram Stories containing ads were not labelled clearly. In 2024, the ASA contacted over 150 repeat offenders and continues to receive significant complaints about unclear advertising.

To improve compliance, the ASA and CMA have published updated guidance clarifying how influencers should disclose commercial relationships across social media, consolidating learning from recent rulings and CMA enforcement actions.

The development

The updated guidance confirms three core principles:

1. Incentivised content must be disclosed

If a creator receives payment, a gift, a loaned product, free services, affiliate commission or any other commercial benefit, the post will generally be considered an ad under the CAP Code or a commercial practice under consumer-protection law. Even where the brand has no editorial control, consumer-protection law still requires a clear disclosure because the relationship is material to the audience.

2. No ambiguity is acceptable

Disclosures must be immediate, prominent and easy to understand. Labels such as “#ad”, “advert”, and “paid partnership” are generally acceptable. Vague terms - “collab”, “spon”, “thanks X”, or simply tagging a brand - are not. Disclosures must appear at the start of a caption or be clearly overlaid on visual content, not hidden in hashtags or expandable text.

3. Applies across all formats

The same rules apply to:

• posts and stories;
• reels and videos;
• livestreams and podcasts; and
• blogs, newsletters and longform content.

Creators promoting their own products or services must also label this as advertising.

Are platform disclosure tools sufficient?

Platform tools (e.g., Instagram’s “Paid Partnership” banner) may satisfy disclosure requirements if they are clear, prominent and unavoidable. However, regulators warn that platform tools alone may be insufficient, and creators should use additional explicit labels where needed.

Authenticity and accuracy

Endorsements must reflect genuine experience. Misleading claims or fabricated impressions may breach both advertising standards and consumer-protection law.

Why is this important?

Regulators now view influencer transparency not as a technical formality but as a material consumer-protection issue:

• the ASA may publicly name non-compliant influencers or impose sanctions through its compliance procedures;
• the CMA, equipped with new fining powers under the DMCC Act 2024, may impose penalties of up to 10% of global turnover for serious or repeated consumer-law breaches.

For brands, inadequate influencer disclosures create direct legal liability and significant reputational risk.

Any practical tips?

Organisations should consider:

• using explicit labels such as “ad”, “advert”, “paid partnership”;
• making disclosures immediate and prominent - not buried in hashtags or lengthy captions;
• avoid ambiguous terminology;
• ensuring influencer contracts require compliance and provide clear instructions on disclosure obligations;
• auditing influencers' content regularly and provide training where needed;
• maintaining records of gifted products, affiliate arrangements and approvals; and
• seeking legal advice where promotional claims risk being treated as exaggerated or misleading.

Winter 2025