Advertising and marketing | UK Regulatory Outlook January 2025

Advertising and AI

AI as a marketing term

The Advertising Standards Authority (ASA) published a report in November 2024, setting out current trends in the use of "AI" in marketing, as well as some top tips for marketers.

The ASA said that, when making claims that a product has or uses AI, to avoid misleading consumers, advertisers should not:

• claim that a product uses AI or has AI features, if it does not;
• exaggerate the functionality of any AI products or features; and
• claim that an AI product does something better than a non-AI product, without supporting evidence.

See this Regulatory Outlook for more information.

Over the next 6-12 months, the ASA will continue to monitor ads in this area and it will produce more guidance and actions if necessary. Businesses need to make sure they comply with the ASA's guidance on AI as well as the advertising codes when making claims about AI.

AI regulation

The ASA says that AI is changing the way it regulates. The regulator's Active Ad Monitoring system already proactively scans over three million ads monthly, and it is collaborating with industry to expand the amount of data its AI system has access to. In 2025, it is aiming for 20% of rulings to be AI-generated, though all final decisions will still involve human review.

This showcases the ASA's commitment to integrating AI and machine learning into the centre of its regulation. Businesses should stay attentive to the ASA's proactive stance as well as keep up with any legal and regulatory changes affecting their marketing practices.

DMCCA and advertising

The Digital Markets, Competition and Consumers Act 2024 (DMCCA), which brings significant reform to UK consumer law, will revoke and restate the Consumer Protection From Unfair Trading Regulations 2008 (CPRs). The relevant unfair commercial practices (UCP) provisions are in Chapter 1 of Part 4 of the DMCCA.

Since most of the rules on misleading advertising in the advertising codes derive from or are compatible with the CPRs, the Committee of Advertising Practice (CAP) and the Broadcast Committee of Advertising Practice (BCAP) have amended them to align with the DMCCA. For example, advertising rules that reflect prohibited practices that are unfair in all circumstances, such as "drip pricing", now state that marketing communications "must not" engage in the practice, rather than referring to misleading the consumer. For marketing communications that quote prices for advertised products, omitting material information includes omitting the total price of the product.

The changes are open for consultation until 5 February 2025. The UCP provisions are currently expected to come into force in April 2025, and the Competition and Markets Authority's strengthened enforcement powers are expected to become effective this spring. Businesses therefore need to start bringing their practices into compliance now.

See our Insight for more recent DMCCA updates, including more details on fake reviews, drip pricing and a new subscription regime.

Adtech and use of cookies

The Information Commissioner's Office's (ICO) work to crack down on the misuse of cookies in advertising, dating back to 2023, is ongoing. The ICO is currently consulting on draft updated guidance on storage and access technologies (previously known as the "detailed cookies guidance"). The consultation is open until 14 March 2025.

In September 2024, the ICO reprimanded Sky Betting and Gaming for unlawfully processing people's personal data and sharing it with advertising technology companies before users were asked for consent. See this Regulatory Outlook for more information.

See the Data Law section for more information.

HFSS

Last year, the government confirmed that it will bring forward advertising restrictions for "less healthy" food and drink products, and published the relevant secondary legislation. The ban will come into force from 1 October 2025.

The regulations provide for:

• A 21:00 watershed on the advertising of less healthy food or drink products on broadcast TV services that are regulated by Ofcom (which means the service is listed in electronic programme guides), including all Ofcom-regulated on-demand programme services (ODPS) and internet protocol television (IPTV) services that deliver TV services and advertising live (as opposed to on demand) over the internet.
• A total ban on paid-for advertising of less healthy food or drink online, including non-Ofcom regulated ODPS and IPTV.

The government also confirmed that:

• Ofcom-regulated IPTV services will be subject to the broadcast restrictions only and not the online prohibitions.
• Unregulated IPTV services will continue to be subject to the online prohibitions.
• Where an identical service, including in relation to ads, is available on both Ofcom-regulated and unregulated platforms, the service on the unregulated platform will be exempt from the online prohibitions to prevent double regulation.

See our Insight for more information, including on which products are in scope.

Additionally, businesses operating in England should also be aware that the restrictions on volume price promotions (such as "buy one, get one free" and "get three for the price of two") of HFSS products are also due to come into force in October 2025.

Tobacco and vapes

Tobacco and Vapes Bill

The UK Tobacco and Vapes Bill, introduced to Parliament in November 2024, contains various provisions relating to the sale and distribution of tobacco products and vapes, including a ban on selling vaping or nicotine products to under 18s. The bill prohibits the publication, design, printing and distribution of advertisements for a range of relevant products. See this Regulatory Outlook for background. The bill has entered the committee stage where it will be scrutinised by parliamentarians in detail. We will provide further updates on the bill as it progresses through Parliament.

ASA focus on vapes appealing to children

Since June 2023, the ASA has been looking into the issue of vaping ads targeted at or likely to appeal to under 18s, particularly on social media, where they are prohibited. Having engaged with platforms displaying vaping ads, and having taken action against non-compliant businesses and individuals (for example, by having social media accounts removed), the ASA ended its formal co-ordinated response last year.

However, the ASA will continue routine checks and compliance action in this area and it has further enforcement action in the pipeline.   

The government has pledged to create a "smoke-free generation". Businesses need to follow any regulatory updates relating to the advertising and marketing of tobacco and vapes products as this promises to be one of the government's focuses this year. The ASA also continues to monitor this area.

Dynamic pricing

See Consumer section.

EU Digital Fairness Act

See Consumer section.