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<p>Last year the government announced its intention to review how online advertising
is regulated in the UK, looking at how well the current regime is equipped to tackle
the challenges posed by developments in online advertising. <del class="ministerial">The
interim report can be found here: <a href="https://www.gov.uk/government/news/cma-lifts-the-lid-on-digital-giants"
target="_blank">https://www.gov.uk/government/news/cma-lifts-the-lid-on-digital-giants</a>.</del>
<ins class="ministerial">The announcement can be found here: <a href="https://www.gov.uk/government/speeches/jeremy-wrights-statement-on-the-cairncross-review"
target="_blank">https://www.gov.uk/government/speeches/jeremy-wrights-statement-on-the-cairncross-review</a>.</ins></p><p>
</p><p>Currently, advertising in the UK is overseen by the Advertising Standards Authority
(ASA), the industry’s independent regulator, which for online advertising enforces
the Code of Non-broadcast Advertising and Direct & Promotional Marketing (CAP
Code) through a system of self-regulation. The CAP Code incorporates all relevant
legislation, including consumer protection legislation, and sets standards for accuracy
and honesty to which advertisers must adhere. This system operates independently of
government.</p><p> </p><p>The remit of the ASA extends to the online promotion of
products by celebrities, if the celebrity has been paid (including payment in kind)
by an advertiser, and the advertiser exerts some form of editorial control over the
resulting content. To guarantee compliance with the CAP Code in such cases, advertisers
must ensure that endorsements are genuine, claims are accurate and advertising is
clearly identified as such. The products themselves must also adhere to relevant regulation
and standards.</p><p> </p><p>If the advertiser does not exert some form of editorial
control over the resulting content, consumer protection legislation still applies
and is enforced instead by the Competition and Markets Authority (CMA). The CMA works
closely with the ASA in this area, and expects such content to clearly identify any
commercial relationship and to have regard to the CAP Code.</p><p> </p><p>The Competition
and Markets Authority recently investigated social media endorsements by influencers
/ celebrities to ensure that they were being clear to their followers, resulting in
influencers / celebrities changing their practices. They also published a guide to
help influencers and those working with them to understand how to comply with UK consumer
protection law. <ins class="ministerial">Separately to this work, but complementary
to the government's review of online advertising, the CMA is conducting a market study
of online platforms and digital advertising, and published an interim report in December
which can be found here: https://www.gov.uk/government/news/cma-lifts-the-lid-on-digital-giants.</ins></p>
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