Influencer Marketing Disclosure Rules in the UK: When and How to Label #Ad
Updated: Sep 4
In the UK, any content an influencer is paid, gifted or otherwise incentivised to post must be clearly labelled as advertising — the ASA expects an upfront “Ad” label, not a word buried in the hashtags. Since 6 April 2025, the Competition and Markets Authority can enforce these rules directly and fine businesses up to 10% of global turnover, so getting disclosure right is now a commercial necessity for brands and creators alike.
Two rulebooks, one simple principle
Influencer marketing in the UK sits under two overlapping systems, and it pays to know both. The first is the UK Code of Non-broadcast Advertising (the CAP Code), enforced by the Advertising Standards Authority (ASA). Its core rule is that marketing communications must be “obviously identifiable” as advertising. The second is consumer protection law, which since 6 April 2025 has been enforced directly by the Competition and Markets Authority (CMA) under the Digital Markets, Competition and Consumers Act 2024.
The principle behind both is refreshingly simple: your audience should be able to tell they are looking at an ad before they read, watch or act on it. If money, free products, a press trip or any other incentive changed hands, the post is advertising — and it has to be labelled so people recognise it as such.
What changed in 2025 is the teeth. Previously, most enforcement came through ASA rulings that named the influencer and the brand. Now the CMA can investigate and fine businesses directly, with penalties of up to 10% of worldwide turnover for serious breaches. Hidden advertising and fake reviews were named priorities from day one.
When does content need a label?
The trigger for disclosure is a commercial relationship combined with content the brand can influence. The ASA puts it plainly: “whenever a brand gives an influencer a payment or any other incentive... any content featuring or referring to the brand will need to be obviously identifiable as advertising.”
In practice, you need a label whenever the creator was paid in cash or in kind; received a free product or service, even if it arrived unsolicited; earns commission through an affiliate link or a trackable discount code; has a personal or commercial connection to the brand, such as being an employee, ambassador or shareholder; or is promoting a brand they own themselves.
Crucially, the format is irrelevant. The same rule covers a feed post, a Reel, a Story, a TikTok, a YouTube video, a livestream, a podcast read, a newsletter and a blog. A 15-second Story that vanishes in a day is treated exactly like a permanent grid post.
Which labels the ASA accepts — and which it doesn't
Wording matters more than most people realise. The ASA accepts clear, well-understood labels such as “Ad”, “Advert”, “Advertisement” and “Ad Feature”. These leave no room for doubt.
It regards a long list of alternatives as insufficient: “Sponsored” on its own (seen as open to interpretation), “Gifted”, “In association with”, “Supported by”, and abbreviations like “sp”, “spon” and “aff” that ordinary users don’t reliably decode. Simply tagging the brand, dropping in a discount code, or leaning on a platform’s built-in “Paid partnership” tool is not enough on its own — those tools only help when the label they produce is clear, prominent and unavoidable.
The scale of the problem is well documented. In the ASA’s own monitoring sweep of Instagram and TikTok, only 55% of ads on Instagram and 60% on TikTok were adequately disclosed. Of the content that fell short, around four in five carried no disclosure at all, while the rest used labels the ASA deems inadequate. In short: most breaches are avoidable with a single clear word.
Getting placement right
A correct label in the wrong place still fails. The ASA expects disclosure to be upfront and prominent, so the audience recognises the content as advertising “without having to click or otherwise interact with it.”
That means putting “Ad” at the very start of a caption, before any “...more” truncation and well clear of a block of hashtags. On video, overlay the label on the footage or state it out loud early. On Stories, make it visible the instant the Story opens and before any link or swipe. And always sense-check legibility on a phone screen, where the vast majority of people will see it — pale grey text over a busy photo does not pass.
The three traps: gifting, affiliates and own brands
These categories catch out more creators and brands than any other. First, gifting: “Gifted” is not an acceptable label. If you send a product for free and there is any agreement, brief or reasonable expectation of a post, that content is advertising and needs an “Ad” label — the fact that no cash changed hands is irrelevant.
Second, affiliate marketing: because the creator earns commission on the interest they generate, affiliate content is advertising, and the ASA treats the influencer as an advertiser. The brand can be held jointly responsible even where it never saw or approved the specific post.
Third, own-brand content: when a creator promotes a product they own, co-created or have a stake in, that is advertising by definition. Founders posting about their own line are not exempt just because it is “their” channel — the audience still needs to know there is a commercial interest.
A quick compliance checklist
Before anything goes live, run five checks. One: did any payment, product, trip or commission change hands? If yes, it is an ad. Two: is the label one of “Ad”, “Advert” or “Advertisement”? Three: is it at the very start, readable without tapping “more”? Four: is it legible on a mobile screen? Five: have both the brand and the creator kept a written record of the arrangement, in case the ASA or CMA asks? Five yeses means you are on firm ground.
Quick FAQ
Do I need to write #ad if a brand just sent me a free product?
Yes. A gift counts as an incentive, so if there is any agreement or reasonable expectation that you will post about it, the content needs an “Ad” label. The word “gifted” on its own is not enough for the ASA.
Is “Sponsored” or Instagram’s “Paid partnership” tag enough on its own?
Often not. The ASA treats “Sponsored” as open to misinterpretation, and platform tags only satisfy the rules if they are clear, prominent and unavoidable. The safest approach is to add “Ad” at the start of your caption as well.
Who gets in trouble if content isn’t labelled — the influencer or the brand?
Potentially both. The ASA names influencers and brands in its rulings, and under the DMCC Act the CMA can take direct action against businesses, with fines of up to 10% of global turnover.
Do these rules apply to small businesses and micro-influencers?
Yes. They apply regardless of follower count or budget. A local business gifting products to a nano-influencer faces exactly the same disclosure requirements as a national brand.
Disclosure isn’t a legal box to tick — it is what keeps an audience’s trust intact. The creators and brands who label clearly and early are the ones who build long-term partnerships, because followers can tell when you are being straight with them. Transparency is now a competitive advantage, not a compliance cost. — Daniel Nikolla, Founder of Merx Marketing
Treat disclosure as the first line of your caption, not an afterthought — a clear “Ad” at the start protects your brand, your creators and your audience’s trust all at once.
How confident are you that your last influencer campaign would pass an ASA spot-check?
If you would like to know more about this topic, please contact us on danieln@merxmarketing.co.uk
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Written by Daniel Nikolla, Founder of Merx Marketing Ltd and Marketing Minute
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