Regulation is rewriting the advertising playbook. From AI-driven monitoring to new restrictions on the advertising of less healthy foods, brands face a year of sharper scrutiny. Here’s what businesses need to look out for over the year ahead.
Published 9 January 2026
1. Continued shift in Advertising Standards Authority (‘ASA’) approach
In its 2024-2028 strategy AI-assisted collective ad regulation, the ASA committed to prioritise proactive regulatory projects, and to invest more in its preventative and proactive work in comparison to its reactive, complaints based casework. This commitment was echoed in the ASA’s recently published 2025 mid-year report, in which they also committed to continue to integrate the Active Ad Monitoring system (‘the AAMS’) into their processes.
The AAMS, which is on course to scan 40 million ads this year, provides the ASA with a strong foundation from which to proactively monitor online ads which potentially breach the UK Code of Non-Broadcast Advertising and Direct & Promotional Marketing (‘CAP Code’). The AAMS captures ads at scale, and is configured to spot those ads most likely to be relevant to a specific issue or compliance problem (i.e. a breach of a specific CAP Code provision, such as the incorrect presentation of a price, or an irresponsible drinking message). The ASA’s experts then assess the ads captured by the AAMS, and identify those ads which require regulatory action. One such example of the AAMs in action was a recent review of alcohol ads, the findings for which were set out in the Pulse Report: Alcohol Advertising.
This shift in approach means that ads identified solely by the ASA’s AAMS, rather than by virtue of a consumer complaint, could lead to an ASA ruling being published, and in turn, the advert being banned. This has already led to various rulings being published in ‘batches’ throughout last year, with each ruling being linked to the others by way of a particular theme or sectorial issue. We expect this approach to continue in 2026, and for the balance of the ASA’s proactive to reactive regulation to tip further towards more proactive intervention.
2. Enforcement of the ‘less healthy foods’ (‘LHF’) rules
The new rules restricting the advertising of LHF products on television and in on-demand programme services between 05:30 and 21:00, and in paid for online advertising, came into force on 5 January 2026. The CAP Code and UK Code of Broadcast Advertising (‘BCAP Code’) (together, ‘the Advertising Codes’) now contain the rules which had previously been the subject of so much consultation.
As set out in more detail in our article, and explained by the Committee of Advertising Practice (‘CAP’) in their recently published Advertising Guidance, ‘brand advertisements’ are exempt from the LHF product advertising restrictions. What constitutes a brand ad (or more importantly what does not constitute such an ad) is also explained within the Advertising Codes. Perhaps in recognition of the complexity of the new rules, CAP have also published a ‘secondary advice resource’ to assist advertisers.
As the year begins, we expect the ASA to publish several rulings banning ads which continue to advertise LHF products in a way that is contrary to the new rules. Given the seemingly ever-growing capabilities of the ASA’s AAMS it is imperative that advertisers are complying with the rules from the outset (even if the ad in question initially appeared prior to 5 January 2026).
3. Consistent scrutiny of environmental claims
Environmental claims are likely to continue to face scrutiny from the Competition and Markets Authority (‘CMA’) and ASA to ensure compliance with the CMA’s Green Claims Code and the Advertising Codes.
Throughout the course of 2025, the ASA published several rulings concerning ads which breached Section 11 of the CAP Code. In its Preview of 2026 Corporate Objectives, the ASA commit to progress their Climate Change and the Environment Project (‘CCE Project’) and its proactive activities on ad claims for carbon neutrality and net zero, greener homes, fast fashion, transport, energy, green disposal and meat, dairy and plant based alternatives.
As a result, we expect more rulings banning ads for a breach of the relevant rules to be published this year. The ever-improving capabilities of the AAMS mean it is more important than ever that marketers making environmental claims ensure that those claims comply with the requirements of the Advertising Codes, as well as the Green Claims Code, and the CMA’s general guidance on unfair commercial practices.
4. AI in Ads: Rules or rulings on the horizon?
Back in June 2025, the ASA’s Chief Executive made clear that ‘responsible ads must not be sacrificed at the altar of advances in technology’, and that ads for AI tech offering mental health support, and essay writing tools that pass work off as original were on the ASA’s radar.
However, the need for ads to be responsible in the new world of generative AI raises a broader consideration. As explained by CAP in May 2025, whilst the Advertising Codes don’t contain AI-specific rules, the existing rules apply regardless of how ad content is generated. On that basis, advertisers need to consider if an audience is likely to be misled if the use of AI is not disclosed in an ad, and even then, whether there a danger of the audience being misled if that disclosure is contradicting the ad’s main message.
As the use of generative AI becomes more commonplace in advertising over the course of this year, we may well see further guidance from CAP on the use of AI in ads, or enforcement action determining that ads have misled consumers in the absence of, or despite, the inclusion of an AI disclosure/label.
5. Ongoing ASA projects
In its 2025 mid-year report, the ASA make reference to several ongoing proactive regulatory projects. We may see updates related to some of these projects during 2026. In addition to the ongoing CCE Project, reference is also made to projects relating to finance ads, the speed of ASA investigations, ads for cosmetic surgery abroad, influencer disclosure, healthcare and wellbeing ads, e-cigarette ads and fertility ads. We have seen updates in relation to some, but not all, of these projects already.
The ASA also highlight the existence of a project considering how offence is regulated, and point to the implementation of ‘…appropriate changes from our Regulating Offence review, to help meet our priority of protecting vulnerable people from irresponsible advertising’. This perhaps signals a consideration of the effectiveness and/or adequacy of the current rules governing offence in the Advertising Codes, any changes to which could have an impact on ads and marketers across a broad range of sectors.
6. Updated guidance on protecting under 18s in gambling and lotteries advertising
In October 2025, CAP and BCAP released updated guidance on protecting under-18s in gambling and lotteries advertising.
The new guidance made clear that, as a rule of thumb, having at least 100,000 social media followers registered to under-18s, across social platforms, is indicative of strong appeal. The guidance also clarified that prominent sportspeople involved in non-adult centric sports (i.e. those sports where there is evidence of significant participation or viewership amongst under-18s) are likely to be of high risk of being of strong appeal to under 18s. Conversely, sportspeople involved in adult-centric sports (i.e. those sports where there is no evidence of significant under-18 participation of viewership) are of low risk, unless they have a significant social media making them well-known to under 18s.
The ASA will no doubt be keen to apply the revised guidance in practice during 2026, to add to what has been a consistent stream of ‘strong appeal’ rulings over the last three years.
7. Fake reviews
The ASA are yet to publish any rulings in relation to ads which have breached the CAP Code’s new rules on fake consumer reviews (namely rules 3.44 – 3.46). These rules were introduced in April 2025 following the coming into force of the Unfair Commercial Practices (‘UCP’) provisions in the Digital Markets, Competition and Consumers Act 2024 (‘DMCCA’).
Under the new rules, marketing communications must not contain fake consumer reviews, and must make clear when consumer reviews have been incentivised. Marketers must also not publish consumer reviews, or consumer review information, in a misleading way.
Up until now, the CMA has been more active than the ASA in relation to fake reviews. Following an online CMA sweep of 100 businesses, the CMA confirmed that it was writing to 54 businesses highlighting that they must have measures in place to prevent fake reviews from appearing on their sites, including clear and easily accessible policies.
As 2026 begins, we would expect the ASA to start to publish rulings in respect of ads which are contrary to the new ‘fake review’ rules. The CMA may decide to follow up with any of the businesses that did not make satisfactory changes to their procedures despite the receipt of CMA correspondence.
8. Increase in enforcement of misleading advertising and unfair commercial practices
In 2025, CAP amended the Advertising Codes to reflect the changes to the rules on UCPs brought in by the DMCCA. These changes are contained within the “Amendments to the Advertising Codes following review in response to the DMCCA” document and will be subject to review after 12 months.
We expect to see significant activity and ASA rulings this year in relation to pricing transparency and misleading pricing practices such as drip-pricing (including in relation to the presentation of delivery charges), false reference pricing (e.g., “was/now pricing”), misleading time-limited offers, and other UCPs.
This is particularly the case considering the CMA’s new increased enforcement powers under the DMCCA, which are set out in this article. The CMAs recent activity and formal investigations into online pricing practices and potential breaches of consumer law are set out in this article.
Businesses should review their marketing and pricing practices with full knowledge of the CMAs remit, powers and recent activity. Businesses with problematic or complex pricing practices are in a higher risk category and may find themselves in receipt of a letter from the CMA instead of, or in addition to, an ASA complaint.
9. Upcoming changes to unit pricing
How retailers display prices for consumers (including online) is governed by the Price Marking Order 2004 (‘PMO 2004’). Amendments to the PMO 2004 are now set to take effect from the 6 April 2026. The PMO 2004 requires the transparent display of the selling price and, where applicable, the unit price, of a product. This allows consumers to make like-for-like price comparisons.
Businesses must ensure they are aware of the changes to the PMO 2004 ahead of their implementation later this year. For example, from 6 April 2026, businesses are required to display unit prices per product in metric units (kilogram, litre, metre, etc.), and where a trader offers a product at more than one selling price (i.e. standard and member / loyalty pricing), the trader must show each selling and unit price along with what conditions need to be satisfied for a particular price point to apply. The changes also extend the types of products for which a unit price must be displayed. Unit prices and selling prices must be unambiguous, easily identifiable, clearly legible and displayed in a clear and reasonably sized font. Guidance was published in September 2025.
Criminal enforcement of the PMO 2004 can be undertaken by Trading Standards. Civil enforcement can be undertaken by CMA, Trading Standards and sector regulators. The CMA can now also enforce the PMO 2004 directly under its powers in the DMCCA.
10. Voluntary Code of Good Practice for prize draw operators (‘the Code’)
In November 2025, the Department for Culture Media and Sport published the Code, which focuses on prize draws and competitions in Great Britain where the outcome is determined by chance, and where there is both a paid and free entry route. These draws do not require a licence under the Gambling Act 2005 because they offer a free entry route.
Signatories have agreed to fully implement the Code no later than 20 May 2026, and are expected to work with operators who are not yet signatories to adopt the measures contained in the Code and subsequently sign it. The standards of good practice contained in the Code are split into three categories: player protection, transparency and accountability. Key requirements include not targeting ads for prize draws at under-18s, and not accepting credit card payments in excess of £250 per month per player. Free entry routes should also be publicised in a way that is likely to come to the attention of all potential players.
Signatories should ensure they are complying with the Code from May 2026. Those operators that are not yet signed up should consider the potential reputational damage associated with not doing so.
If you require any assistance in relation to any of the topics discussed above, or would like to discuss your advertising concerns and challenges more generally, do get in touch with Stephen Johnstone and Adam Flynn.