The UK's Approach to Influencer Marketing Regulations & Laws

UK brands lead Europe on influencer marketing compliance. On ethics, they rank last. 6% have no ethical or behavioural conditions for influencers whatsoever, three times the European average. The problem isn't that brands are breaking rules. It's that compliance and responsibility aren't the same thing, and the gap between them is quietly becoming a reputational liability. The Molly-Mae Hague situation wasn't a regulatory failure. It was an ethical one. The brands most at risk right now aren't the ones cutting corners on disclosure. They're the ones operating without a values framework for when things go wrong.

There's a version of this conversation where we congratulate UK brands for their diligence. According to the Kolsquare State of Influencer Marketing Report, 76% require influencers to comply with all regulations. That's the highest rate in Europe. Contracts are standard. Disclosures are generally in order.

So why does the data paint such an uncomfortable picture?

Because following the rules and running responsible campaigns are not the same thing. And in the UK, the gap between those two things is wider than almost anywhere else in Europe.

The numbers are hard to ignore

The survey from the NewtonX research discovered that:

• For 31% of UK brands, maintaining a balance between sensitivity to social issues and promoting the brand is a pain point. This is about average for the brands we questioned.
• 63% of UK brands systematically use contracts, which is above the European average.
• 73% of UK brands think how the campaign will reflect on the brand is the most important consideration.

Fewer than half of UK companies rate compliance with corporate ethics or brand charters as important when working with influencers.

In other European markets, that number is significantly higher. The UK is also the least concerned about social issues when choosing influencers, bullying, discrimination, sustainability, the promotion of sensitive products. And 6% of UK brands have no ethical or behavioural conditions for influencers whatsoever. That's three times the European average.

Read that again. 

Meanwhile, 73% of UK brands say a campaign reflecting well on the brand is their primary concern. So reputation matters. Ethics, apparently, less so.

That's a contradiction worth sitting with.

The regulatory context explains some of it

Post-Brexit, the UK operates in a more permissive regulatory environment than EU counterparts. French brands face fines of up to €300,000 for undisclosed influencer content. UK brands face being named by the ASA. The asymmetry in consequences produces asymmetric behaviour.

There's also a structural explanation. UK brands lean heavily on gifting and affiliate models: 46% use gifting, 53% run affiliate campaigns. These are lower-commitment, higher-autonomy formats. When you're not on contract, enforcing values alignment is harder. Brands have found a workaround and called it creative freedom.

Add in the economic context: UK consumers absorbed a cost of living increase 53% higher than the European average. Discretionary ethics spending, whether by consumers or brands, shrinks under that kind of pressure.

None of this makes the situation acceptable. It just makes it explicable.

Why this matters more than brands think

The Molly-Mae Hague and PrettyLittleThing situation is worth studying. The backlash wasn't triggered by a compliance failure. There was no undisclosed ad, no regulatory breach. It was an ethical misalignment, a brand associated with an influencer whose public remarks conflicted with the values its customers expected it to hold. PLT's profits have been declining since.

This is the pattern UK brands are currently gambling on not experiencing. And for now, many of them are winning that gamble. Consumers are still buying despite ethical concerns. The regulatory ceiling is low. The short-term logic holds.

But consumer expectations are moving. Underconsumption as an aesthetic is gaining traction, especially among younger audiences. Globally, the appetite for brands to take positions on social issues isn't weakening. And when the moment comes for a brand that has no ethical framework for its influencer partnerships, there's nothing to fall back on. No policy. No standards. No story.

The practical ask

This isn't a call for brands to rewrite their entire influencer strategy. It's simpler than that.

Brands need to set a high standard and follow regulations while maintaining ethical values.

Here are some ways brands can enhance the ethics of their IM strategy:

• ESG and Transparent Reporting: UK companies can strengthen their ethical approach by adopting comprehensive ESG strategies. This includes setting transparent targets and reports for sustainability, social impact, and governance. According to a 2023 survey by PwC, 79% of UK CEOs acknowledged the importance of ESG initiatives in maintaining long-term profitability and reputational health.
   
• Foster Long-Term, Ethical Partnerships: Affiliate links and gifting are great starter campaigns. However, long-term influencer partnerships build deeper trust, credibility, and authentic brand alignment. They allow influencers to naturally integrate the brand into their content, enhancing loyalty among their followers. These sustained relationships also support ethical working conditions, providing more stability for influencers and a stronger commitment to brand campaigns.
   
• Communicate Clear Ethical Policies: Establish clear ethical policies throughout the business. A report by the Chartered Institute of Marketing highlighted that 42% of UK marketers saw clear, consistent communication of ethical values as a critical factor in consumer trust.
   
• Engage in Stakeholder Collaboration and Social Dialogue: Companies can build trust and credibility by engaging with stakeholders—customers, employees, suppliers, and the community—on social and ethical issues. And consider asking your employees to share your brand's culture as employee advocates. But Eidleman also found that 78% of UK consumers want the CEO to speak out about ethical issues.
   
• Leverage Influencer Marketing Platforms: Use digital tools and technology platforms to monitor influencer compliance and credibility. You can also use the platform to quickly discover which brands influencers have worked with, the hashtags they use, and more

These help you run better campaigns and can increase your return on investment over time.