Advertising developments: Q2 2025

EU Commission announces Green Claims Directive likely to be dropped 

The EU Commission has announced that it proposes to drop the Green Claims Directive since it is contrary to the Commission's simplification agenda. Any decision to withdraw the Directive would require approval by the College of Commissioners. Pending that approval, the Directive will continue to trilogue stage.

CMA issues update on dynamic pricing project 

On 20 June 2025, the CMA published an update on its dynamic pricing project including tips for businesses using dynamic pricing. The CMA's concerns around dynamic pricing are centred on situations where consumers are unaware it is being used or of how it impacts pricing, where it pressures consumers into making quick decisions, where it is used to gain or maintain market power or create barriers to new market entrants, or where it impacts vulnerable consumers. 

EC consultation on Regulation setting out information to be disclosed on unsold consumer products 

On 12 June 2025, the EC published a consultation on a draft Implementing Regulation which sets out the details and format for the disclosure of information on discarded unsold consumer products under the Ecodesign Regulation. The consultation closes on 10 July 2025. 

Government announces HFSS rules delayed in theory but not in practice

New rules restricting the advertising of high fat, salt and sugar (HFSS) foods and drinks have (in theory) been delayed from 1 October 2025 to 5 January 2026. The delay will give the government the time to introduce and consult on a statutory instrument (SI) expressly clarifying that brand advertising is out of scope of the restrictions. Brand advertising means advertising that does not refer to a specific HFSS product. The SI will give certainty to businesses and regulators, allowing the latter to implement and enforce clear guidance. 

Notwithstanding the proposed delay, advertisers intermediaries and publishers have voluntarily committed to abide by the incoming restrictions from the earlier date of 1 October 2025. It means that, from that date, adverts for specific HFSS products cannot be shown on TV or Ofcom-regulated on-demand programme services between 5.30am and 9pm, or in paid-for advertising online, at any time. Meanwhile, the ASA has announced, that CAP is pausing its consultation on revised guidance on the restrictions so that it can take into account the government's planned revision of the new rules.

EU warns SHEIN over alleged breaches of consumer protection law

On 26 May 2025, the EU Commission and the Consumer Protection Cooperation Network formally notified SHEIN of multiple suspected infringements of EU consumer law, following a joint investigation by authorities in Belgium, France, Ireland, and The Netherlands.

The alleged breaches relate to a broad range of unfair commercial practices, including:

• fake discounts and pressure selling tactics

• misleading or unclear returns and refund processes

• deceptive product labelling

• greenwashing/misleading sustainability claims

• failure to provide clear contact information.

SHEIN has one month to address these practices and propose satisfactory solutions. Failure to respond or address the concerns could lead to co-ordinated enforcement measures, including fines based on EU-wide turnover.

This consumer enforcement action runs alongside ongoing scrutiny under the Digital Services Act, given SHEIN's classification as a Very Large Online Platform (VLOP).

Following on from the formal notification, consumer group BEUC has also filed a complaint with the European Commission and European consumer protection authorities (the CPC Network), alleging Shein's use of dark patterns constitute unfair commercial practices under the Unfair Commercial Practices Directive.

HM Treasury responds to consultation on regulating BNPL products

On 19 May 2025, HM Treasury released its final response to the consultation on regulating Buy-Now, Pay-Later (BNPL) products, marking a significant shift in the UK's consumer credit landscape. This move aims to introduce robust consumer protections and integrate BNPL services into the existing regulatory framework.

The draft Financial Services and Markets Act 2000 (Regulated Activities etc) (Amendment) Order 2025 has been laid before Parliament. Once enacted, the FCA is expected to finalise its rules and have full regulatory oversight by mid-2026.

EC consults on new consumer agenda 2025-30

On 19 May 2025, the European Commission (EC) published a consultation on its forthcoming Consumer Agenda for 2025-30, accompanied by an action plan aimed at enhancing consumer rights within the single market.

• Strengthening consumer rights. The agenda aims to ensure that consumers fully benefit from the single market, with a focus on eliminating unfair discrimination and safeguarding rights across borders.

• Enforcement. A significant emphasis is placed on bolstering the enforcement of consumer protection laws.
  The consultation is open until 11 August 2025 and the Commission plans to adopt the final Communication towards the end of 2025.

Price Marking Order amended to address unit pricing concerns

The Price Marking (Amendment) Order 2025 (SI 2025/592) was made on 14 May 2025 and will come into force on 30 September 2025, with provisions becoming effective on 6 April 2026.

The amendments respond to CMA concerns and aim to improve clarity and compliance in unit pricing. Key changes include:

• Wider unit pricing obligations. Article 5 is extended to cover more products, including packaged food (eg pasta) and non-food goods (eg cosmetics).

• Restrictions on general price reductions. Article 9 is amended to prohibit displaying reduced prices directly on products when general notices are used. Instead, they can only be used to indicate general reductions.

• Clarified exemptions. It clarified the exemption that traders have no need to show a unit price where products comprise a mix of different items (eg mixed gift sets) sold in varying weights or volumes and priced differently when sold separately.

EC adopts 2025-2030 working plan for Ecodesign and Energy Labelling

On 16 April 2025, the European Commission (EC) adopted its 2025–2030 working plan for the Ecodesign Regulation and for Energy Labelling Regulation. The plan sets out an agenda to enhance sustainability, energy efficiency and circularity of products in the EU market, aligned with the Clean Industrial Deal and the EU’s broader climate objectives.

• Product scope and priorities. The plan identifies priority product groups that will be the focus of new ecodesign and energy labelling requirements over the next five years. These include steel and aluminium, textiles (with an emphasis on apparel), furniture, tyres and mattresses. These were selected based on their potential to contribute to the circular economy, energy savings, and reduced environmental impact.

• Repairability and recyclability measures. The EC will also introduce horizontal ecodesign measures to improve the repairability and recyclability of consumer electronics and small household appliances. Key proposals include: a repairability score for products with high potential impact; requirements to enhance the recyclability of electrical and electronic equipment; and obligations relating to the availability of spare parts, minimum durability, and recycled content.

The requirements will be implemented through delegated acts for each product or product group. These will follow detailed preparatory studies and impact assessments, with ongoing stakeholder consultation through the Ecodesign Forum. Tailored support will be offered to SMEs, particularly micro and small mid-cap enterprises, to facilitate compliance.

Some energy-related products still under the current Ecodesign Directive will continue through the existing regulatory pipeline, with all relevant rules to be adopted no later than 31 December 2026. This working plan represents a significant step towards a harmonised EU framework that both strengthens the single market and promotes environmental sustainability across high-impact consumer goods.

EC consults on delegated Regulation to clarify EU Deforestation-free Products Regulation scope

On 15 April 2025, the European Commission (EC) launched a consultation on a delegated Regulation intended to clarify the scope and application of the EU Deforestation-free Products Regulation (EUDR), which applies to a range of commodities and products associated with deforestation risk. The Commission also published updated guidance and FAQs to support businesses with compliance and due diligence obligations.

MEPs briefed on Commission's planned consumer protection and other reforms

On 8 April 2025, Commissioner McGrath briefed MEPs on the European Commission’s upcoming consumer protection and digital regulation priorities, covering digital fairness, enforcement, and product safety. Key announcements include:

• Consumer Agenda and Single Market Action Plan expected in 2025. The Commissioner confirmed that the Consumer Agenda 2025–2030 will be published in Q3 this year, alongside an Action Plan for consumers in the Single Market, detailing enforcement initiatives and policy actions.

• Digital Fairness Act addressing online consumer harms. The Commissioner confirmed that the long-awaited Digital Fairness Act will be published in Q3 2025, with proposals to address legal gaps and tackle unfair digital practices, such as addictive design features, dark patterns and cumbersome subscription cancellations. The proposals are aimed at closing regulatory gaps in the current EU consumer protection framework applicable to online environments.

• Enforcement of recent digital and consumer laws. McGrath underlined the importance of robust enforcement of new and forthcoming legislation, including: the Digital Markets Act, Digital Services Act, Artificial Intelligence Act, General Product Safety Regulation (GPSR) and Empowering Consumers for the Green Transition Directive (EmpCo). The Commission will focus on ensuring compliance with these frameworks to enhance consumer protection and level the playing field for businesses across the EU.

• Upcoming product safety and data protection initiatives. The first EU-wide product safety sweep under the e-commerce communication will be conducted before summer 2025, with chemical safety highlighted as a priority focus. The Commission is exploring ways to simplify GDPR record-keeping requirements, to reduce the compliance burden on businesses while maintaining data protection standards.

DMCCA largely comes into force and CAP/BCAP amends Codes

The Digital Markets, Competition and Consumers Act (DMCCA) reforms on unfair commercial practices largely came into force on 6 April 2025 – see our series of articles on the reforms starting here.

Meanwhile, CAP and BCAP published changes to the UK Advertising Codes to align with the DMCCA reforms. The ASA changes took immediate effect and are detailed in a Regulatory Statement and Evaluation Table, with accompanying ASA guidance.

While the core principles of misleading advertising remain consistent, the ASA updates incorporate nuanced changes to definitions and introduce new prohibited practices. The ASA noted that these modifications are subtle and, in most instances, do not significantly alter its enforcement approach:

• Mandatory information and omissions. Marketing communications must not omit material information, particularly where it is required by law. This includes information consumers need to make informed decisions, such as key product characteristics, terms and conditions, and any legal disclosures. Omissions that could mislead by ambiguity or lack of clarity are now more explicitly prohibited.

• Total price transparency. Ads that include pricing must quote the total price payable, inclusive of all unavoidable fees, charges, taxes and other costs. If certain costs cannot be calculated in advance, the method of calculation must be stated clearly, and with equal prominence to the main price.

• Price comparisons. Marketers must clearly explain the basis of any comparison — for instance, whether the comparison is against a former price, a competitor’s price, or a recommended retail price (RRP). Failure to do so may now be considered a breach, even in cases where the comparison might otherwise appear accurate.

• Fake and misleading consumer reviews. Use of fake reviews in advertising is explicitly prohibited. Any reviews featured in marketing communications must be genuine, and clearly labelled if they have been incentivised. Incentives are only permitted if they are not conditional on writing a positive review.

• Vulnerable consumers. The updated guidance emphasises that advertisements do not need to be exclusively targeted at vulnerable groups to be assessed from their perspective. If an advertisement is likely to have a particularly misleading impact on a vulnerable audience, the ASA may evaluate it accordingly.

Tobacco and Vapes Bill progresses with advertising-related amendments

The Tobacco and Vapes Bill has passed its third reading in the House of Commons and now proceeds to the House of Lords. The Bill forms part of the UK government’s broader public health strategy, aiming to reduce youth access to tobacco and vaping products. Key amendments include:

• Expanded age verification provisions. A range of acceptable age verification measures will be specified through secondary legislation to future-proof requirements.

• Extension of 'regulated displays'. The Bill now expressly covers tobacco-related devices, not just tobacco or vape products themselves.

• Clarification of 'vending machine' definition. The Bill now defines a vending machine to include all machines dispensing tobacco, vaping or nicotine products, regardless of whether they are coin-operated or digital.

These amendments will have implications for retail compliance, marketing restrictions, and product placement regulations. Businesses involved in the sale or advertisement of nicotine products should review internal policies and prepare for further legislative developments as the Bill moves through the House of Lords.

Parliamentary committee launches inquiry into UK media literacy 

On 21 March 2025, the House of Lords Communications and Digital Committee launched a formal inquiry into media literacy in the UK. The inquiry arises from growing concerns over the UK public’s ability to critically assess digital information and differentiate between editorial and sponsored content, especially among children.

CMA seeks further changes from Ticketmaster over Oasis ticket sales

On 25 March 2025, the CMA published a progress update on its ongoing consumer law investigation into Ticketmaster, following widespread consumer complaints over the sale of tickets to Oasis concerts. Key concerns raised include:

• platinum tickets, which were priced higher, may have misled consumers by not offering proportionate additional benefits

• multiple standing ticket categories with different pricing, questioning the transparency of those distinctions.

Contrary to public assumptions, the CMA found no evidence of real-time dynamic pricing. Instead, standing tickets were released in two separate tranches, with the second release priced higher.

The CMA believes Ticketmaster may have breached consumer protection law, particularly:

• failing to provide clear, accurate and timely pricing information

• creating potentially misleading impressions of ticket value or availability.

Although Ticketmaster has made some changes to its practices, the CMA is not satisfied that they go far enough. The regulator has set out additional steps Ticketmaster must take to improve upfront transparency when tickets are offered for sale. The CMA continues to engage directly with Ticketmaster to resolve the issues.

This investigation runs alongside the government’s January 2025 call for evidence into broader live event ticketing practices. The government is now consulting on measures to strengthen consumer protections in the secondary ticketing market.

This article was primarily authored by Meshah Kuevi.