Advertising

AI-generated content in advertising

From 2 August 2026, transparency obligations under the EU AI Act (Article 50) apply in the EU to providers and deployers of generative AI systems, including those producing advertising content. Deepfakes and AI-generated or AI-manipulated text published on matters of public interest must be clearly labelled. Users must also be informed when interacting with AI systems such as chatbots. The European Commission published a final Code of Practice on 10 June 2026 to help providers and deployers implement these requirements; signing the Code is voluntary but compliance with Article 50 is mandatory from 2 August 2026 regardless. In the UK, CAP published a guidance note earlier this year confirming that existing advertising codes apply to all AI-generated content on the same basis as human-created content, with particular caution advised around the use of deepfakes in advertising.

Please see our article here and the European Commission's guidelines here.

Digital Fairness Act

The EU is preparing a new Digital Fairness Act (DFA). As of July 2026, the Commission has not yet published a formal legislative proposal. The DFA will tackle unfair commercial practices including dark patterns, influencer marketing, addictive design and targeted advertising. The European Commission launched a public consultation and call for evidence which closed on 24 October 2025. On 19 December 2025, the Commission published a report setting out input to the consultation and call for evidence. The Commission's legislative proposal is expected in Q3 or Q4 2026, following which it will proceed through the European Parliament and Council.

Fraudulent Advertising

Under the Online Safety Act (OSA), in-scope service providers must put in place proportionate systems and processes to prevent fraudulent advertising and take it down when made aware. Ofcom launched a consultation on draft Fraudulent Advertising Codes of Practice on 10 July 2026. The draft codes set out nearly 40 measures for Category 1 and Category 2A services — including major social media and search platforms — covering governance, fraud-indicator assessments, advertising moderation, account integrity and advertising libraries. The consultation closes on 2 October 2026. Ofcom intends to publish its final statement by mid-2027, after which the codes will take effect once approved by Parliament.

Tobacco and Vapes Act

The Tobacco and Vapes Bill received Royal Assent on 29 April 2026, becoming the Tobacco and Vapes Act 2026. The Act bans the advertising and sponsorship of herbal smoking products, cigarette papers, vaping, consumer nicotine products and tobacco products, and gives the Government powers to restrict packaging, branding and in-store displays. The advertising ban is not yet in force: it requires commencement regulations, and the Government has indicated it intends to bring the restrictions into force from 1 June 2027. CAP and BCAP have indicated they are likely to consult on changes to the existing Advertising Codes to reflect the new provisions.

Greenwashing

Please see the ESG section for more information about upcoming developments regarding greenwashing.

Less Healthy Food and Drinks

New rules on TV and online advertising of less healthy food and drink products started on 5 January 2026. Such products are now banned from TV ads between 5.30am to 9.00pm. In addition, there is now a ban on paid-for online advertising for such products (with some limited exceptions). The Advertising Standards Authority (ASA) has published guidance on advertising less healthy products. The ASA issued its first enforcement rulings under the new regime on 15 April 2026, clarifying how the identifiability test applies and confirming that a single identifiable less healthy product in an advertisement is sufficient to constitute a breach. On 26 March 2026, the Government launched a consultation on applying its updated Nutrient Profiling Model to the restrictions, which closed on 17 June 2026; the outcome could widen the range of products caught by the rules.