Is your content compliant with influencer marketing regulations? A 2025 study by the Advertising Standards Authority (ASA) found that only around 57% of influencer ads stuck to their ad disclosure rules, and being part of the 43% not following ASA guidance could mean facing everything from hefty fines to a tattered reputation. Don’t take that risk. Instead, read on to learn exactly what counts as an ad and how to label your content.
JUMP TO
The Competition and Markets Authority (CMA) sets it out clearly: “If you’ve been incentivised in any way to promote a brand or product in your social media content, it’s important that all this content is clearly identifiable as an ad (or advertising), and reflects your genuine experience.”
Exactly how is each term defined? Do free gifts or affiliate codes count as an incentive? Are you even considered an influencer? Must user-generated content (UGC) follow the same rules?
Let’s take a closer look and break down everything aspiring content creators should know.
What counts as content?
The term “content” is used broadly to cover:
- Photos (including carousels)
- Videos
- Reels
- Stories
- Podcasts
- Any other posts online
Instagram DM automation CreatorFlow points out that automated messages must also be included: “When an automated DM sends an affiliate link, a discount code, or a partner offer, that message is advertising in the same way the post was.”
What counts as an ad?
Some ads are obviously just that, such as when you’re paid a cash fee to promote a product. Those aren’t the only type of ads the CMA requires you to disclose, however. Its full list covers:
- Ads
- Endorsements
- Commercial relationships, including sponsorships
- Competitions, prize draws, or giveaways
- Affiliated links or programmes
- Discount codes
- Business partnerships
- Own brand promotions
- Product placement
- Reviews
- Content about gifts received for free
What counts as incentivised?
Incentives include more than cash payments. “Many disclosure failures happen because brands and creators genuinely don’t realise a gift or event invite falls under the same rules as a cash fee,” according to the Internet Advertising Bureau UK (IAB UK).
Made in Chelsea star Binky Felstead fell afoul of such a misunderstanding when she failed to properly label an Instagram post promoting Vodafone after the phone company gifted her tickets to Wimbledon and entrance to its hospitality suite.
According to the CMA, payment covers “any form of incentive or reward,” including:
- Money
- Commissions
- Discounts
- Gifts of any products or services
- Leases or loans free of charge or with more favourable conditions than offered to the general public
It also covers “businesses sending products or invites to events without asking for anything in return.”
What counts as an influencer?
ASA influencer guidelines don’t care how many followers you have or if your content-creation career just started.
It defines “influencer” as “any human, animal, or virtually produced persona that is active on any online social media platform, such as Facebook, Instagram, Snapchat, TikTok, Twitch, YouTube, and others.”
That’s the case even if you don’t consider yourself an influencer. A few things the ASA considers synonymous with influencer include:
- Blogger
- Streamer
- Celebrity
- Content creator
What counts as misleading?
Failing to disclose an ad is misleading because followers may make purchasing decisions based on your content without knowing it was incentivised. That isn’t the only way content can be misleading, however.
You can mislead audiences by giving the impression that:
- You’re a consumer when acting on behalf of a brand or for your own business’s purposes
- You bought something that was a gift or loan
- You have used a product yourself when you haven’t, such as saying something tastes good when you haven’t tried it
- Something about the product was true when you don’t know it is or know it isn’t
- Results are better than they actually were, such as by using filters while demonstrating the benefits of a beauty product
Credit: CamiloRico_graphy/Shutterstock
“All commercial content must be correctly labelled and clearly identifiable as an ad,” writes the CMA. “To do this, all labels must be clear, prominent, and easy to understand. It is not enough just to tag a brand in your post, use discount codes, or affiliate links.”
Terms that clearly identify your content as an ad include:
- Ad
- Advert
- “AD”
- Advertising
- Advertisement
Here’s a simulated example from the CMA that “would likely comply with the requirements of consumer-protection law.”
Keep your content similarly compliant by ensuring ad disclosures meet the following five conditions.
1. Clearly marking gifts
Avoid using any unclear or ambiguous terms that suggest an ad without outright disclosing it. These include:
- #gift
- #gifted
- #aff
- #affiliate
- #collab
- #PRTrip
- #spon
- #sponsored
- Funded by
- In association with
- Made possible by
- My products
- Mybrand
- Ownbrand
- PR Haul
- PR Stay
- Thank you
- Just naming the brand
CreatorFlow points out that labelling content as “#sponsored,” which is standard in US content, is the “single most common mistake” among UK influencers.
“‘Ad’ or ‘#ad’ remains the safest and clearest option,” writes IAB UK, so just stick with that.
2. Ensuring disclosure labels are visible
Disclosure labels must be immediately visible to anyone viewing your content, not hidden, buried, or otherwise disguised. According to the CMA, audiences shouldn’t have to:
- Scroll or select a link for more information
- Resize the screen
- Study the content carefully
- Access your profile page or bio
- Already be aware of previous content you’ve posted
Remember: This applies to every post in isolation, regardless of what’s in your profile.
Olivia Buckland found out the hard way in 2017. Her bio described her as an ambassador for Warpaint Cosmetics and she’d published two posts announcing the role, but another post promoting their eye shadow was ruled noncompliant since it didn’t independently disclose itself as advertising.
3. Posting disclosure labels first
The CMA dictates that labelling should be “obvious as soon as anyone engages with the content.”
That means:
- “#ad” should be the first hashtag, not the last.
- A single “ad” mention can’t be buried at the bottom of a long description.
- Each part of a carousel or other sequence must be labelled when it contains promotional messaging.
- Text overlay should be added to Stories and Reels.
- Verbal disclosure, on-screen text, and disclosure in the description are expected for long-form videos.
That’s why you’ll notice YouTubers like Littlejem mentioning sponsorships at the start of a video even when the ad read doesn’t come until much later.
4. Ensuring disclosure labels are brand-specific
It must be clear exactly which brands you’re advertising in each post.
5. Don’t rely on platform tools to add disclosure labels for you
Most social media platforms popular with influencers compel users to properly label their content using native tools and toggles. YouTube, for example, has its “Includes paid promotion” label, and there’s a similar “paid partnership” label on Instagram.
Native tools like Instagram ad disclosure, however, don’t remove the need for labelling dictated by the ASA. You’ll still need to label that YouTube video and follow all the other rules listed above.
Regulatory bodies understand mistakes are made and that many infractions spring from an improper understanding of the law. Consequences, however, can become serious.
“We’re here to support influencers and brands in getting it right, but where we see repeat breaches, we won’t hesitate to take action,” says Ed Senior, senior ASA compliance executive.
Actions may include:
- Content removal: Noncompliant influencer content may be removed.
- Naming and shaming: Public rulings can significantly damage your reputation, with some routine offenders listed online by the ASA.
- Fines: Penalties can reach up to £300,000 for individuals.
- Redress orders: The CMA can order brands to compensate all consumers who were misled.
Keep in mind that legal consequences may not be the only fallout. Any failures on your part can damage a brand’s reputation, hinder future partnerships, and make securing paid content-creation work considerably harder.
Credit: Anatoliy Karlyuk/Shutterstock
At the contract stage, ensure that the exact placement and wording of a disclosure is clearly stipulated, and then keep a record of all commercial relationships in case the CMA ever requires such evidence.
When creating the content, ask yourself these questions:
- Does this count as an ad?
- Did I receive anything that counts as an incentive?
- Have I actually used the product or service I’m endorsing?
- Have I made any misleading or unsupported statements?
- Is my content unambiguously and independently labelled?
- Is disclosure immediately visible and one of the first things people see?
- Have I disclosed exactly what I’m advertising?
- Have I also used the platform’s native disclosure tool?
- Am I promoting my own business, product, or service?
If any of those answers give you pause, go back and make absolutely sure you’re compliant.