Rules and ethics
Does CMA enforcement on hidden ads change UK sponsorship deals?
Influencer contract compliance now sits under CMA enforcement, the DMCC Act 2024 and CPUT Regulations 2008, changing disclosure clauses and evidence.
What to take away
- Hidden ad enforcement reaches the brand that commissioned the post, not only the creator who published it. No contract clause moves that duty.
- The CMA now decides breaches itself and can fine up to £300,000 or 10% of global turnover, whichever is higher.
- Contracts need a named label, approval before posting, a takedown right and retained proof.
- Platform labels help but do not settle the question. Keep the campaign file for six years, the limitation period for contract claims in England.
Who the CMA pursues for a hidden ad
The Competition and Markets Authority regulates competition and consumer matters across the UK, where unfair commercial practices sit inside its remit. A paid or gifted endorsement sold as personal opinion is one of them.
Hidden ads have been a priority for years. The CMA's 2019 social media endorsements action ended with a group of high-profile UK creators agreeing to label paid posts clearly.
The advertiser pays for the reach, so the advertiser answers for the omission. Our risk scenarios piece covers the deal shapes where that exposure is largest, including gifted-only posts and long ambassadorships.
What the DMCC Act 2024 lets the CMA do
CPUT Regulations 2008
- Role
- Older framework behind disclosure duties
- Who decides
- CMA sought a court order
- Maximum penalty
- No direct CMA fine
- Effect on deals
- Slower, guidance-led
DMCC Act 2024
- Role
- Current basis for CMA consumer enforcement
- Who decides
- CMA determines the breach
- Maximum penalty
- Higher of £300,000 or 10% of global turnover
- Effect on deals
- Compliance sits inside the contract
The consumer regime has been in force since April 2025. The Digital Markets, Competition and Consumers Act 2024 sets the test for an unfair commercial practice and gives the CMA power to determine one itself.
An endorsement is misleading when the commercial link is hidden or unclear. Cash, free product, affiliate commission, a discount code and a paid trip all count. Intent is not part of the test.
Clauses a sponsorship agreement now needs
A line telling the creator to follow the CAP Code and all applicable law gives the brand no control and no evidence.
- A disclosure clause naming the label wording, its position and the moment it must appear.
- An approval right so the brand checks the post and caption before it goes live.
- A takedown right where the label is missing, unclear or later removed.
- A duty to keep the label in place while the content stays published.
Clauses to add or tighten
- Define commercial relationshipcash, gifts, trips, affiliate, ambassador
- Exact label wording and placement, visible without tapping more
- Pre-publication approval for first post and edited reposts
- Takedown or edit obligation with short deadline after request
- Creator warranties not to remove or hide the label
Review your UK regulations position before the next campaign cycle, because CMA powers put the brand's own compliance process inside the deal.
How to evidence disclosure and how long to keep records
If the CMA asks questions, a brand that can show briefs, approvals and dated screenshots in an afternoon sits in a different position from one rebuilding events from memory.
- The signed contract and the brief, with the disclosure instruction as a numbered item.
- The approval thread showing the label was checked before posting.
- Dated screenshots of each live post, at publication and at campaign end.
Work to six years, because contract claims in England can be brought within six years. For an ambassadorship, run the clock from the date the final post comes down.
Reporting a hidden endorsement to the CMA
- Gather post links, screenshots, dates and any sign of payment or gifting.
- Submit the details, describing the practice rather than the personality.
- Expect triage. The CMA weighs harm, scale and evidence quality before opening a case.
- If nothing is published, consider an ASA complaint, which is faster and produces a ruling.
The Report a problem to the CMA page accepts submissions from competitors, creators, agencies and the public, so a weak deal can be escalated by someone outside the campaign.
Platform labels and where they fall short
Instagram's paid partnership label, TikTok's branded content toggle and YouTube's paid promotion checkbox all flag a commercial relationship, but coverage is uneven.
A label may not appear on every surface or format, can be cropped in feed, and depends on the brand being tagged or the toggle being on. None of them covers affiliate links or gifted-only posts.
The ASA advice on recognising ads on social media sets out what a clear label looks like. A policy alone will not be read, so turn it into a brief line using this guide to what a disclosure policy means for England campaigns.
Common questions
Does the CMA fine individual influencers?
Its consumer powers target businesses, and a creator paid in cash or free product can be treated as trading. The advertiser commissioning the campaign is usually the main target, so contracts should reflect that split.
Are CMA undertakings legally binding?
Yes. They are published commitments, and breaching one can lead to penalties under the DMCC Act 2024. They are not private settlements.
Do we still need the CAP Code as well?
Yes. The ASA enforces the CAP Code through published rulings, while the CMA enforces consumer law through undertakings and penalties.
