Advertising and Marketing | UK Regulatory Outlook February 2023

Latest on green claims: updates to CAP guidance 

The UK Committee of Advertising Practice (CAP) and the Broadcast Committee of Advertising Practice (BCAP) have updated their "The environment: misleading claims and social responsibility in advertising" guidance. 

The amendments were made to reflect the provisions of the Competition and Markets Authority (CMA)'s guidance on environmental claims on goods and services regarding the use of carbon neutral and net zero claims in advertising. This follows last year's research into consumer understanding of environmental claims published by the Advertising Standards Authority, which showed the challenges consumers face with this terminology. 

The committees have announced that they will be monitoring how the revised guidance impacts carbon neutral and net zero claims in advertising and how these claims are being substantiated for the subsequent six months; if necessary, the guidance on claims substantiation will follow.  

This also follows the CMA's announcement that it is undertaking a new market investigation with particular focus on fast-moving consumer goods such as food and drink, personal care and cleaning products.

Please see our Insight for more details.

France leads on specific regulation for influencers and the EU may follow

The topic of possible regulation of influencer marketing has recently emerged in the EU. In France, MPs have already addressed this issue by proposing two draft bills. The aim is to fight against the spread of misleading and illegal commercial practices online. 

Please see our Insight for more details. 

HMRC issues letters to online marketplace platforms and content creators

The Chartered Institute of Taxation has reported that HMRC began issuing letters to online marketplace platforms and content creators as part of its "one to many" letter campaign in the week commencing 16 January 2023. HMRC believes that certain taxpayers have sold services online but have not informed about their income. In particular, the letters relate to:

• Earnings from online marketplaces sales, which is badged as a "status check" letter.
• Earnings from creating content on digital platforms.

HMRC has confirmed its plans to continue this work in 2023 and beyond.