Regulatory Outlook

Advertising and marketing | UK Regulatory Outlook January 2026

Published on 13th January 2026

Influencer marketing | AI disclosure and enforcement | Protection of children | Price transparency under the DMCCA | Subscriptions | Restrictions on less healthy food and drink advertising | Tobacco and vapes | Green claims 

Icon of man with global wifi

A busy regulatory agenda lies ahead in 2026 for advertisers, platforms and brands. In the UK, the Advertising Standards Authority (ASA) and the Committee of Advertising Practice (CAP) are likely to continue focusing on influencer disclosures and protecting children, and the ASA will scale up its AI based Active Ad Monitoring system to proactively identify non compliance. UK restrictions on the advertising of less healthy food and drink are now in force and environmental claims remain a high-priority enforcement area for the regulators. With the unfair commercial practices regime in the Digital Markets, Competition and Consumers Act 2024 (DMCCA) now fully in force, the Competition and Markets Authority (CMA) is starting to use its enhanced consumer protection powers and sharpening its focus on drip pricing and pressure selling. In the EU, the proposed Digital Fairness Act may also target influencer marketing. Below, we set out in more detail the key developments most likely to shape 2026.

Influencer marketing

The UK Advertising Standards Authority (ASA) continues to monitor influencers' compliance with the rules on the disclosure of ads in social media posts. While some improvement has been observed, the ASA still identifies compliance gaps, and it has said that it will apply targeted sanctions for repeated breaches.

All parties in the advertising supply chain – influencers, brands and agencies – share responsibility for clear disclosure of advertising content. Parties must use platforms' disclosure tools, mark posts with "Ad" or "#ad", and not rely on ad disclosure in bios or other advertising posts. The ASA will only find disclosure "clear by context" for own-brand advertising if it is absolutely clear that the ad is indeed own‑brand advertising (for example, when the brand name matches the advertiser's account name).

The EU's proposal for the Digital Fairness Act (DFA), expected to be published in the fourth quarter of 2026, may address influencer marketing. The European Commission is concerned about hidden marketing (influencers not clearly labelling ads as ads), the promotion by influencers of potentially harmful products (such as tobacco or vaping, unhealthy food and drink) and the promotion of unrealistic beauty standards. In its consultation on the DFA, the Commission asked various questions on influencer marketing to assess what needs to be done (whether that is new binding legislation in the form of the DFA, more effective enforcement of existing rules or simply the publication of some new guidelines) to prevent these harmful practices by influencers. This would include potentially ensuring that influencer compliance responsibilities are shared with the brands that collaborate with them.

AI: disclosure and enforcement

The UK advertising codes do not contain specific rules on the use of AI in advertising content. However, the Committee of Advertising Practice (CAP) advises that the codes apply to all advertising content, regardless of how it is created. Accordingly, ads created using AI are subject to the same requirements as those produced through more traditional creative processes. When using AI, CAP suggests that advertisers ask themselves whether the audience would be misled if the use of AI is not disclosed and, where there is a risk of the ad misleading consumers, whether disclosure would clarify or contradict the ad's overall message. Disclosure cannot remedy fundamentally deceptive messaging. CAP encourages marketers to exercise particular caution around the use of deepfakes and other AI technologies that could potentially mislead viewers.

The ASA is constantly scaling up its AI-based Active Ad Monitoring system to proactively identify non-compliance across online advertising, enabling faster identification and banning of irresponsible ads.

The EU AI Act's transparency obligations are due to take effect from 2 August 2026 (subject to proposed changes contained in the recently published Digital Omnibus). The European Commission is developing a voluntary code of practice for providers and deployers of generative AI on the marking and labelling of AI-generated content, including deepfakes and other synthetic audio, images, video and text, expected by summer 2026.

Protection of children

Protecting children remains a core priority for the regulators. UK action has focused on protecting under 18s from gambling advertising through ASA adjudications and CAP's updated guidance in this area.

In the EU, the Digital Services Act prohibits online platforms from displaying ads based on profiling to minors and requires platforms accessible to minors to put in place measures to ensure a high level of privacy, safety and security for minors. The Commission has published non-binding guidelines to support compliance with these obligations, including in respect of advertising. Providers of online platforms accessible to minors should ensure that minors are not exposed to harmful, unethical and unlawful advertising; commercial communications are clearly visible, child friendly, age appropriate and accessible; and minors are not exposed to hidden or disguised advertising.

Price transparency under the DMCCA

The UK Digital Markets, Competition and Consumers Act's (DMCCA) unfair commercial practices provisions, fully in force since April 2025, prohibit practices such as drip pricing and fake reviews. The Competition and Markets Authority (CMA) now has direct enforcement powers, which include the power to impose significant fines, and is focusing initial action on online pricing practices such as drip pricing and pressure selling.

Subscriptions

The DMCCA introduces a new regime for paid business-to-consumer subscription contracts that includes rules on providing certain pre‑contract information, sending renewal reminders and making cancellation of subscription contracts simpler. The regime is expected to come into effect in autumn 2026, with further detail to be set out in secondary legislation and guidance.

The EU DFA is expected to address problems with digital contracts, including subscription cancellation processes, auto-renewals and free trials automatically converting to paid subscriptions.

Restrictions on less healthy food and drink advertising

The UK's restrictions on the advertising of less healthy food and drink are in effect from 5 January 2026, following a delay to provide for an explicit exemption for pure "brand advertising". The regime introduces a 21:00 watershed on broadcast TV and a total ban on paid‑for advertising of in‑scope products online. The ASA has confirmed its commitment to start enforcing the rules from January 2026, and CAP has published new advertising guidance to help marketers understand how the ASA is likely to apply the rules. 

Tobacco and vapes

The UK Tobacco and Vapes Bill proposes banning vapes and nicotine products from being deliberately branded, promoted and advertised to children. The bill is progressing through Parliament, currently at the report stage in the House of Lords. 

Green claims

The ASA has reiterated its commitment to the Climate Change and Environment project, prioritising action on advertising for carbon neutrality and net zero, greener homes, fast fashion, transport and travel, energy, green disposal and meat, dairy and plant-based alternatives. CAP's recent series of guidance notes on environmental claims covered the homes, cruise and aviation industries, and the ASA's proactive sweep of environmental claims focused on online ads by major UK travel agents.

The EU Green Claims Directive proposal, which would, among other things, require companies to provide verified evidence for any green claims, is currently on hold following the European Commission's attempt to withdraw the directive. According to the Commission's 2026 work programme, the proposal remains pending.

View the full Regulatory Outlook

Interested in hearing more? Read all the articles in our Regulatory Outlook series

Expand
Receive Regulatory Outlook each month

A round-up of upcoming regulatory developments – straight to your inbox

* This article is current as of the date of its publication and does not necessarily reflect the present state of the law or relevant regulation.

Connect with one of our experts

Interested in hearing more from Osborne Clarke?