New Fining Powers from Competition & Markets Authority

Non-Compliance with Advertising Standards Will Cost You

In the fast-paced world of advertising, staying compliant is crucial for protecting your brand’s reputation and financial health. While rulings by the Advertising Standards Authority (ASA) may not seem severe due to the lack of direct fines, the reputational damage can be significant and recent changes in UK consumer law enforcement have added a new layer of urgency for advertisers.

The New Landscape of Consumer Law Enforcement

The introduction of the Digital Markets, Competition and Consumer Act in 2024 has empowered the Competition and Markets Authority (CMA) to directly enforce consumer law through proceedings. This means that a challenge from the ASA on an advert or campaign could now trigger action by the CMA, which has the authority to issue penalties for breaches of consumer law. The CMA’s Enforcement Guidance explicitly states that ASA rulings will be taken into account.

The Implications for Advertisers

Since 6 April 2025, the CMA has been granted significant powers, including:

• Issuing infringement notices
• Imposing fines of up to 10% of global turnover or £300,000 whichever is higher
• Enforcing commitments made by companies and fining those who breach these promises.

These powers mean that non-compliance with advertising standards can now lead to substantial financial penalties, in addition to reputational damage.

Reality Bites 

To illustrate the real-world impact of non-compliance, here are a couple of recent examples:

1. Influencers Failing to Disclose Ads: In January 2022, the ASA escalated sanctions against six influencers who consistently failed to disclose ads on their Instagram accounts despite repeated warnings. The ASA took out ads against these influencers on Instagram, alerting consumers to their failure to follow the rules. This action highlights the importance of transparency in advertising and the consequences of non-compliance. It’s like getting caught sneaking cookies from the jar—everyone knows, and now you have to share!
2. Non-Compliant Advertisers: The ASA maintains a list of advertisers who continue to make claims on their online sites that do not adhere to the rules despite repeated requests for changes. These advertisers face various sanctions, including the removal of paid-search ads and the placement of ASA’s own paid-search ads to highlight the advertiser’s non-compliance. Imagine being that kid in class who keeps talking despite the teacher’s warnings—eventually, you get sent to the principal’s office!

Show me the Money!

The ASA and CMA have been actively enforcing compliance, and the statistics reflect the seriousness of these efforts:

• In 2024, the ASA resolved 29,000 complaints about 19,000 ads, resulting in 4,500 ads being amended or withdrawn.
• In 2023, the CMA issued fines totaling £2.5 million across various sectors for breaches of consumer law.
• The CMA’s new powers have already led to £1.2 million in fines within the first quarter of 2025.

A Call to Action for Legal Professionals and Marketing Teams

To avoid the severe consequences of non-compliance, it is vital for companies to adhere to good commercial practices and proper standards. Here are some proactive steps that can be taken:

• Train Teams on Compliance: Ensure that all team members are well-versed in compliance requirements and understand the importance of adhering to advertising standards.
• Ensure Compliance from the Get-Go: Integrate compliance checks into the initial stages of campaign planning and execution.
• Implement Proper Procedures: Establish robust procedures for reviewing and approving marketing materials to ensure they meet regulatory standards.
• Audit Marketing Materials: Regularly audit all marketing materials, especially if a ruling by the ASA has been upheld, to ensure ongoing compliance.

Key Takeaway

The stakes have never been higher for advertisers. With the CMA’s new enforcement powers, the cost of non-compliance extends beyond reputational damage to significant financial penalties. Legal professionals and marketing teams must act urgently to ensure their advertising practices are compliant, protecting their brands from the dual threats of reputational harm and financial loss.

By taking these steps, brands can navigate the complex regulatory landscape and maintain their integrity in the eyes of consumers and regulators alike.