Regulation over Reputation? The UK's Approach to Influencer Marketing Laws

How UK brands approach influencer marketing compliance and ethics

Influencer marketing regulations have significantly increased over the past decade, and UK brands strive to comply.

Kolsquare conducted a survey with NewtonX. The 2025 Kolsquare State of Influencer report includes responses from over 600 brands across France, Italy, Spain, Germany, the Benelux, the Nordics, and the UK.

The survey discovered that UK brands and agencies are heavily invested in compliance:

• 70% of UK brands require influencers to comply with advertising regulations, the highest share of any region surveyed.
• 64% of UK brands require clear disclosure of sponsored posts and brand collaborations.

However, in the UK, compliance matters more than ethics. UK brands and agencies are more willing to collaborate with influencers with lower ethical standards than their European counterparts. 

Here's a breakdown of how European and UK brands and agencies view ethics:

• Corporate ethics compliance and the transparency of sponsored posts are European brands' top ethical priorities, chosen by 61% of respondents.
• France and Spain care most about influencers' stance on anti-bullying and transparency with regulations, while Germany and the UK focus more on corporate alignment and disclosure.
• Only 49% of UK brands require influencers to comply with corporate ethics codes or charters, 12 percentage points below the European average.
• Just 32% of UK brands require influencers to stand up against bullying and discrimination. 

UK creators do think about ethics when choosing collaboration. This means that brands that do choose an ethical approach may have a wider choice of collaborators.

Here's how European and UK influencers view ethics in partnerships, according to Kolsquare's Voices of the Creator Economy 2025 report:

• Across Europe, shared values and ethical alignment rank as the top reason creators choose brand partners (47%), which even ranks ahead of compensation (44%). UK creators follow a similar pattern at 43%, though they trail France (50%) and Italy (62%) on this measure.
• 35% of UK creators find current influencer regulations helpful, while 29% say they are too complex.
• A further 16% of UK creators say they are not aware of influencer marketing laws at all.

Influencer ad regulations: What are the legal issues around advertising with influencers?

Regulations vary across Europe. UK activations previously weren't at risk of fines, but regulations have recently harshened. 

The danger of undisclosed ads

The UK regulations are actively enforced. However, currently, naming and shaming is the only punishment. For example, Love Island contestant Francesca Allen was "named and shamed” for repeatedly failing to disclose ad content.

The ASA operates on a name-and-shame basis, and some argue this isn't effective enough on its own. However, the CMA now has fining powers under the DMCC Act 2024, and can impose penalties of up to 10% of global turnover for serious or repeated consumer-law breaches. Reputational damage remains a significant risk too. News articles about non-compliant brands may be the first thing shoppers see when they search a brand's name, making them less likely to purchase.

The UK ASA Guidelines vs EU influencer marketing laws 

Across Europe, legislation varies. In France, failure to tag promotional posts can lead to fines of up to €300K. The European Commission is moving towards a more uniform regulatory framework, driven by concerns about misleading practices and the impact influencers have on vulnerable audiences. In the UK, the CMA can now impose fines of up to 10% of global turnover under the DMCC Act 2024 for serious or repeated breaches.

At the EU level, data-protection and digital services regulations also apply to social media posts. Advertisers must comply with the General Data Protection Regulation (GDPR), which sets strict rules around data collection, consent and privacy. The Digital Services Act (DSA), which came into full effect in 2024, requires large platforms and brands to be more transparent about commercial content and algorithmic recommendations.

Together, these frameworks mean that advertisers operating across Europe face more complex legal requirements than those operating solely in the UK.

Why do UK brands overlook social issues in influencer partnerships?

UK brands care less about bullying, discrimination, the use of minors for promotions and sustainability than their EU counterparts. But why are ethics deprioritised in the UK?

It’s difficult to say exactly. There are likely multiple cultural and political issues at play.

Let's look at a few likely answers.

Post-Brexit Malaise

Post-Brexit, the UK has a more relaxed regulatory environment. EU brands are subject to stricter regulations, such as the Sustainable Finance Disclosure Regulation and Corporate Sustainability Reporting Directive, which push companies to prioritise social and environmental issues.

Interest but Struggling to Act

Reuters found that 62% of UK brands care about ESG. At the same time, a study by the Boston Consulting Group found that 76% of UK consumers are actively trying to make more sustainable and ethical purchasing decisions, and they expect brands to do the same.

Additionally, 57% of consumers say their perception of a brand is directly influenced by its sustainability practices, while 30% are compelled to take action—either by switching brands or advocating for or against them—based on how a brand addresses social and environmental issues.

However, consumer enthusiasm for sustainability is waning. According to Deloitte, 61% of consumers say they have little interest in sustainability, and 47% believe that living more sustainably makes no difference. Cost is also a major barrier, and the share of consumers who have avoided sustainable actions due to expense rose from 52% in 2022 to 61% in 2024. This may help explain why some UK brands are less proactive on social and environmental issues.

But it's no surprise consumers are unwilling to shoulder the costs of ethical consumerism. UK consumers have seen the cost of living rise significantly, and high inflation has also put pressure on businesses. All of these factors may impact both brands and audiences' ethics.

The effect of British business culture

Cultural differences also play a role in how businesses view their responsibility to society. European markets, especially in Scandinavia and other Northern European countries, have a long-standing tradition of integrating social and environmental considerations into business practices. UK businesses tend to have more traditional profit-driven mindsets, which may guide them towards a less ethical approach.

Casual campaigns need a casual approach

UK brands' lax approach to ethics may stem from their preference for more casual campaign types, such as gifting and affiliate marketing. The Kolsquare report found that 46% of UK brands leverage gifting, while 53% use affiliate campaigns.

These models give influencers creative freedom and tend to be more hands-off than fixed-fee campaigns. While this approach to working with influencers often results in authentic content, it can be difficult for brands to enforce adherence to corporate ethics. This could be the cause of the UK's more flexible approach to value alignment.

Striking a balance between regulatory compliance and ethical considerations

Brands may be taking a risk by not prioritising ethics when collaborating on social media posts. When a brand is perceived as unethical or collaborates with "unethical" influencers, its reputation may be harmed.

A prime case study is Molly-Mae Hague's partnership with PrettyLittleThing (PLT). Hague faced backlash after making comments perceived as tone-deaf regarding poverty and hard work, which reflected poorly on PLT. This incident was particularly damaging as it came alongside criticism that PLT was paying its factory workers below minimum wage. PLT's profits fell around the time of the incident.

In such cases, ethical missteps can lead to long-term harm, as a tarnished brand image reduces customer loyalty, negatively affects sales, and potentially limits the brand’s ability to persuade other influencers to collaborate. 

Strategies for UK companies to enhance their ethics while adhering to standards

Brands must set high standards, comply with regulations and uphold their ethical values. But how should they approach these issues?

The following tactics help brands stay compliant when running an IM strategy:

• Prioritise ESG and transparent reporting: UK companies can strengthen their ethical approach by adopting comprehensive ESG strategies and transparent reporting practices. This includes setting transparent targets and reports for sustainability, social impact, and governance. 
• Show viewers your ethics: Establish clear ethical policies throughout the business and reflect them in your influencer campaigns. 
• Dialogue with stakeholders: Companies can build trust and credibility by engaging with stakeholders—customers, employees and suppliers—on social and ethical issues. It's also worth asking employees to share your brand's culture as employee advocates.
• Leverage influencer marketing platforms: Use digital tools and technology platforms like Kolsquare to monitor influencer compliance and credibility. You can also use the platform to quickly discover which brands influencers have worked with, the hashtags they use, and whether they comply with local regulations. 
• Choose long-term, ethical partnerships: Affiliate links and gifting are great starter campaigns. However, long-term influencer partnerships build deeper trust, credibility, and authentic brand alignment. As an influencer promotes a product over a longer time, their audience becomes more familiar with the brand. Sustained relationships also support ethical working conditions, providing more stability for influencers and a stronger commitment to brand campaigns.
• Implement social listening: You can use tools like Kolsquare to monitor which influencers are talking about your brand and how those creators compare to competitors' activations. 

Influencer marketing ad compliance checklist

Whether you're a brand or a creator, staying compliant with influencer marketing regulations is non-negotiable.

Use this checklist before publishing any sponsored content:

• Label all sponsored content with #ad or #sponsored at the start of the post. 
• Disclose gifted products, even if no payment was made.
• Ensure disclosures are visible before the caption cut-off on Instagram, spoken at the start of YouTube videos and displayed as a text overlay in the opening seconds of TikTok videos.
• Avoid sharing false or exaggerated claims about products' benefits.
• Follow stricter rules when creating content directed at children.
• If working with influencers abroad, comply with both their local regulations and yours. 
• Include disclosure requirements in influencer contracts, specifying exact language and placement.
• Monitor published content to confirm disclosures are present and correctly placed.
• Do not purchase fake reviews, fake followers or AI-generated testimonials.
• If promoting health, financial, or age-restricted products, check for additional sector-specific rules.

The future of influencer advertising on social media

Currently, influencer marketers and agencies in the UK aren't prioritising ethics. But the landscape is shifting:

• Regulations are tightening: The UK's Online Safety Act is moving from principles into active enforcement, making compliance systems a legal obligation rather than a best practice.
• Audiences are getting savvier: Ofcom's 2025 Media Use and Attitudes research found that 68% of 13 to 17-year-olds correctly identified a paid influencer post as advertising.
• Transparency will matter more: As audiences get better at spotting commercial content, brands that embed ethics into their influencer strategy now will be better placed for what comes next.

FAQ

What are the rules for influencers?

Influencers in the UK must clearly disclose ads using labels like #ad or #sponsored in compliance with ASA and CMA guidelines. Failure to follow their rules and to correctly label sponsored posts may lead to reputational damage or fines for both content creators and advertisers.

What is the influencer marketing clause?

An influencer marketing clause refers to specific terms in a contract between a brand and an influencer, outlining content expectations, sponsorship disclosures, timelines, payment details, and exclusivity. It ensures both parties meet regulatory standards and have clear obligations.

Are there influencer marketing law firms?

Yes, there are law firms in the UK that specialise in influencer marketing cases. Many firms offer expertise in navigating advertising laws, drafting contracts, and ensuring compliance for brands and influencers. It can help brands define intellectual property and guide them through consumer protection laws and policies.

What is contract law for influencers in the UK?

Influencer marketing contracts set out the terms for content creation, payment, disclosure requirements, usage rights, and timelines. Though not essential for influencer marketing, they are beneficial. The basic elements of contracts are an offer, consideration, acceptance, and mutuality. These laws fall under UK contract law, similar to a freelance working agreement.

What are the laws for influencer marketing in the US?

In the US, the Federal Trade Commission (FTC) is the primary regulator for influencer marketing. The FTC cracks down on influencers and brands who share social media posts with undisclosed ads, misleading statements, and fake reviews.

But there are other organisations at play, including the following:

• Food and Drug Administration (FDA): The FDA oversees health and wellness claims made in influencer content. 
• Securities and Exchange Commission (SEC): The SEC regulates financial promotions made by advertisers. 
• Children's Online Privacy Protection Act (COPPA): COPPA applies to content directed at children under 13. 
• State laws: Some US states have their own consumer protection rules that go further than federal guidelines.
• California Consumer Privacy Act (CCPA): The CCPA gives California residents the right to know how their personal data is collected and used. Brands running influencer campaigns that collect user data must comply with these rules if they target California consumers.

Together, these regulations mean that compliance in the US goes beyond a simple disclosure. Brands and influencers need to consider the nature of the product, the audience, and the platform before posting.

Here's a guide to the influencer marketing rules overseen by the FTC in the US:

• Disclosures must be clear and visible: Audiences need to see ad disclosures before engaging with the content.
• All forms of compensation trigger disclosure: Cash, gifted products and affiliate commissions all need disclosures.
• Brands are equally responsible: If an influencer fails to disclose promotional content, the brand can be held liable too.
• Fake reviews are banned: This includes AI-generated reviews and the purchase of fake followers or engagement.
• Penalties are steep: Non-compliance can result in fines of up to $53,088 per violation, legal action and cease-and-desist orders.