New UK influencer ad rules: what's changed and what agencies need to do now

Undisclosed influencer ads in the UK can now cost brands, agencies and creators real money, not just a slap on the wrist from the ASA.

The ASA, CAP and the Competition and Markets Authority (CMA) have released a new edition of their joint influencer guide on making ads obviously ads. The headline principle is the same as ever: if it's an ad, your audience has to know it's an ad. What has changed is the law sitting underneath it, who can fine you, and a much sharper focus on fake and incentivised reviews.

If you run talent, manage campaigns or post sponsored content, here's what's different and what to tighten up this month.

The real change: the CMA can fine you itself

For years, the worst most creators faced for a missing #ad was an ASA ruling and some bad press. That's no longer the ceiling. The CMA can now hand out fines and order businesses to put things right by itself, with no need to take a case to court first. Trading Standards can also take action, and both can still go through the courts.

Responsibility doesn't sit with the creator alone. The guide says the creator, the brand and any agents involved in making or publishing the content are all responsible for labelling it properly. The CMA also expects robust compliance processes, so "we told them to add #ad" won't be much of a defence on its own.

The ASA's existing sanctions sit on top of this. It can still list repeat offenders on its non-compliant influencers page for up to three months, run ads warning their followers, and name brands on its non-compliant advertisers page.

Four other things that have changed

Reviews have to be real

There's now a whole section on fake reviews. If content reviews a product, it has to reflect the creator's genuine experience. A creator can't say a product is great because the brief says so; if they haven't actually used it, they can't claim they have.

Honest reviews also mean not hiding the bad bits, and not leaving out context. If the creator was paid, or got a personalised version that regular customers can't buy, the audience needs to know. Creators can still review things they didn't love, as long as they don't pretend otherwise.

"Sponsored" isn't good enough

The labels the ASA wants are unchanged: #Ad, #Advert, #Advertising, #Advertisement or #AdvertisementFeature. What's new is how firmly it rules out the alternatives.

"Sponsored", "Spon" and "Sp" are explicitly advised against, as the ASA has previously found they don't make clear the brand had editorial control. The guide also lists other labels to avoid, including "Gifted", "PR", "Collab", "Aff", "In partnership with" and simply tagging the brand.

Platform branded-content tools can be enough, but only when the label is upfront and easy to see. Features like co-authoring don't always do the job, so if there's any doubt, add your own label at the start.

The guide backs this with new ASA research. 80% of the UK online population prefer influencers to be clear when they're advertising, and 79% think the label should be visible straight away (February 2026). When people were tested on a real social feed, only around half spotted the ads correctly, and many mistook genuine reviews for ads.

The legal basis has moved to the DMCC Act

Until now, the guide rested on the Consumer Protection from Unfair Trading Regulations 2008. It now points to the Digital Markets, Competition and Consumers Act 2024, with the CAP Code still sitting alongside it.

Part 4 of the DMCC Act bans unfair commercial practices. For creator marketing, that specifically includes fake reviews, reviews that hide an incentive, and paid editorial content that isn't flagged as paid. Posing as an ordinary consumer, hiding commercial intent and leaving out material facts, such as an ambassador deal, are still banned too.

AI content is covered

AI-generated content has to follow the same rules, and some platforms may also require you to disclose that AI was used.

What hasn't changed

• Payment isn't just cash. Free products, trips, hotel stays, discounts, commission and loans all count, whether or not you were asked to post.
• Personal connections count too. Promoting a brand you, a family member or a friend owns needs labelling.
• Affiliate content is advertising. It needs an upfront label, not a vague "aff" in the caption.
• Disclosure has a 12-month tail. Keep labelling relevant content for a year after a brand relationship ends.
• The ASA's test is the same. It can step in when a brand paid you in some way and had editorial control, such as approving the content or setting key messages.

One point worth stressing: consumer law doesn't care who had control. Even if a brand had no say over the post, a paid or incentivised mention still needs a clear, upfront label.

Your checklist

Agencies and talent managers

• Update talent and brand contracts to require clear labels and genuine reviews
• Check every brief for lines asking talent to endorse things they haven't used
• Document your compliance process: who checks the label, at what point, and where it's recorded
• Make sure talent knows the 12-month rule applies after a deal ends

Creators

• Put #Ad (or another approved label) at the very start, where people see it first
• Drop "Sponsored", "Gifted", "PR" and "Collab" as your only label
• Label every Story in a sponsored series, and every repost in a new format
• Only review what you've genuinely tried, including the downsides
• Say no to brands that discourage you from disclosing
• Not sure? Ask the CAP Copy Advice team before posting

Brands

• Require a clear, upfront label in briefs and contracts, not just a platform tag
• Don't script claims your creators can't back up from real use
• Remember the wider CAP Code still applies, for example to age-restricted products, prize draws and ads aimed at children

The bottom line

Disclosure is no longer a box-ticking exercise. With the CMA able to fine directly, sloppy labelling and scripted reviews are now a financial and reputational risk for everyone in the deal chain.

The agencies that come out of this well will be the ones that can show their process, not just describe it. That means knowing what was agreed in every deal, what the brief said, and what went live. Knoto is built to bring your talent and deals into one place, so your team has that record when it matters.

This post is a summary for creators, agencies and brands and isn't legal advice. If you need advice on your own contracts or processes, speak to a qualified lawyer.