On 23 September 2022, the Digital, Culture, Media and Sport (DCMS) Committee published the Government's response to its report on influencer culture. The original report of 9 May 2022 highlighted several regulatory gaps, in particular concerning advertising disclosure and the protection of children, both as influencers and viewers of influencer content and it called for the urgent reform of influencer marketing regulation.

The DCMS Committee had recommended the Government conducts or commissions a market review into the influencer ecosystem, covering the scope of influencing work, the composition of the community, employment challenges and revenue streams. The Government’s response was that it did not wish to commit to commissioning such a review of the influencer marketplace at this point, stating that they considered that the DCMS’s report acted as an industry review.

The DCMS Committee also recommended that the ASA updates the CAP Code to include mandatory enhanced disclosure standards for adverts which may be targeted towards children or audiences which may be predominantly composed of children. The Government’s response pointed out that it is still considering how online advertising is regulated through the Online Advertising Programme, with a focus to be on improving transparency and accountability across the online advertising ecosystem with the intention of protecting consumers and reduce the harms that can be found in online advertising. The outcome of the Online Advertising Programme is not yet known - the consultation period closed on 8 June but the analysis of the responses is not yet concluded. There were a number of options outlined within the Online Advertising Programme consultation, ranging from a continuation of the self-regulatory framework to full statutory regulation, enabling the enforcement of the CAP Code by the Advertising Standards Authority on a statutory footing. So, at present, there is no change to the disclosure standards for such adverts.

A further recommendation of the DCMS Committee was that the Government commissions an industry partner to develop a code of conduct for influencer marketing, to act as best practice as between influencers and their appointing brands/talent agencies. The Government’s response was that it had already been in discussions with industry bodies regarding the nature of information that could be included in such a code of conduct. It intends to work with such industry bodies to identify relevant stakeholders to contribute to such a new code of conduct or, as may be appropriate, to “adapt and build on existing codes”. The Government’s response included that the Incorporated Society of British Advertisers had created its Code of Conduct, most recently updated on 4 May 2022. In addition, following the Advertising Standards Authority’s research on ad labelling, the Committee of Advertising Practice and the Competition and Markets Authority have produced an updated edition of their influencer guidance, providing rules on disclosures and making it clear as to when an ad is an #ad.

So, for the time being, the rules under which influencers should be acting aren’t changing. However, the Government recognises that influencers have a great impact within the advertising ecosystem and despite any current regulatory inactivity regarding the ecosystem in which influencers operate at present, changes can be expected in time, to a greater or lesser extent.

This is not legal advice; it is intended to provide information of general interest about current legal issues. You should specific legal advice before acting in reliance on any of the information provided.