Advertising and marketing | UK Regulatory Outlook June 2023

CMA publishes a report on consumer protection in green heating and insulation sector

The UK Competition and Markets Authority (CMA) has published a report following its call for information on consumer protection in the green heating and insulation sector.

One of the its key concerns is that some businesses are making misleading claims, including greenwashing, in the sector. The authority, therefore, has confirmed that it will be undertaking further work in relation to such claims. In particular, it intends to develop guidance to help businesses understand and comply with their existing obligations under consumer protection law. It will also consider whether further action, such as enforcement, is necessary.

CAP releases guidance on the presentation of mid-contract price increases in telecoms ads

The UK Committee of Advertising Practice (CAP) has released new guidance on the presentation of mid-contract price increases in ads for telecoms contracts.

The guidance notes that the provisions on potential price increases (their presence and nature) in contracts for broadband services constitute material information for consumers that may affect their decision to purchase the service. The ads for such services, therefore, should be clear about the presence of future mid-contract price increases, and this guidance is aimed to help advertisers avoid misleading consumers in this area.

CAP provides the relevant rules and principles and also gives examples of good practice on the matter.

The guidance is designed for ads for broadband and mobile services, both on their own or as part of a package or "bundle". This may also apply to TV and radio ads. 

The guidance takes effect from 15 December 2023.

CAP publishes guidance on racial and ethnic stereotypes in ads

CAP has published guidance on how to avoid the depiction of racial and ethnic stereotypes likely to cause harm, or serious or widespread offence, in ads.

This follows research conducted by the Advertising Standards Authority (ASA) that has shown that certain types of racial and ethnic stereotypes pose the potential to cause harm by creating a set of limiting beliefs about a person that might negatively restrict how they see themselves and how others see them. CAP's guidance notes that ads rarely set out to include harmful stereotypes, but may unintentionally be in breach of the rules.

The guide provides the relevant UK Advertising Codes' rules on the topic. It describes specific examples that were taken as a conclusion from the ASA's report and that constitute unacceptable practice.

It also highlights that the ASA considers each ad as a whole and in context to assess whether it depicts a racial or ethnic stereotype likely to cause harm.

Greenwashing in the financial sector: European Supervisory Authorities publish their progress reports

The European Supervisory Authorities (European Banking Authority (EBA), European Insurance and Occupational Pensions Authority (EIOPA) and European Securities and Markets Authority (ESMA) – collectively, the ESAs) have published their progress reports on greenwashing in the financial sector. This follows a request from the European Commission to the ESAs last year to provide a high-level overview of greenwashing in their respective areas of competence – financial markets, banking, and insurance and pensions.

The ESAs understand greenwashing as "a practice where sustainability-related statements, declarations, actions, or communications do not clearly and fairly reflect the underlying sustainability profile of an entity, a financial product, or financial services. This practice may be misleading to consumers, investors, or other market participants."

The final report is due in May 2024 where ESAs will consider final recommendations, including possible amendments to the regulatory framework.

Scottish government publishes analysis of consultation on its proposal to restrict promotions of HFSS

Please see Food law.