Advertising and marketing | UK Regulatory Outlook for May 2024 – Osborne Clarke

The ASA publishes the results of its consumer research into green claims in food advertising

The UK Advertising Standards Authority (ASA) has published the results of its consumer research conducted over the past year, which looked at the types of green claims currently used in food advertising and how consumers understand them.

Key findings include:

• Overall, consumers believe that advertising is closely monitored and regulated in the UK and that brands cannot make environmental claims in advertising without evidence and verification. Therefore, these claims are usually accepted literally (for example, general claims such as “good for the planet”). However, some consumers have expressed concerns that some claims are too general to be verified. The use of specific terminology such as “plant-based” or “vegan” is often assumed to be accurate because it is perceived as clear and verifiable.
• Using certain terminology or images in advertising can create a halo effect, causing people to associate certain features with products, even if they don’t claim them directly. For example, the use of the word “natural” may lead to the assumption that the product is also certified organic.
• Visual images can lead people to make assumptions about claims related to the environment, animal welfare and health. Images of products that appear “fresh” may be perceived as inherently “healthy” in the same way that products described as “natural” or “plant-based” are often understood. Using the word “green” as both a color and a word can lead consumers to perceive a brand as environmentally conscious, even if no explicit claims are made.

In light of these findings, the ASA has outlined various steps that it and the Committee on Advertising Practice (CAP) plan to take in 2024:

• ASA will continue to engage with the Competition and Markets Authority, the Department for Environment, Food and Rural Affairs (Defra) and industry stakeholders.
• The CAP intends to provide further guidance to the industry in the form of a series of information articles this summer.
• From July 2024, ASA and CAP will conduct additional monitoring and follow-up activities to address clear violations based on existing ASA rulings and guidance, with the possibility of formally investigating other, less obvious cases. Particular emphasis will be placed on unconditional claims for sustainability and comparative environmental impact.
• In 2024, the ASA will continue to monitor for potentially misleading issues related to “green” images.

ASA publishes new guidance on labeling advertising in podcasts

The ASA and CAP have published new research and guidance on how to ensure that ads read by hosts on podcasts are easily identifiable and distinguished from editorial content.

The ASA consumer research report shows that:

• participants tended to have negative attitudes towards advertising in podcasts, but most agreed on the need for advertising in podcasts as a means of enabling free access. There was tension between participants’ preference for ads to be easy to listen to and the need for ads to be clear and distinguishable from the main content;
• using meaningful terms such as “paid advertising” or “sponsored by” was found to be the most effective way to indicate commercial content in the podcast. Consumers also found it useful when such terms were accompanied by other markings to ensure that the advertisements were fully transparent and distinct, such as music or a jingle at the beginning and end, or a clear change in the host’s tone, and ensuring that the advertisement was short and focused on the product being promoted; AND
• participants stressed the need for stricter regulations regarding the use of personal testimonies in host-read advertisements.

The new CAP guidelines aim to help podcast hosts ensure their ads are clearly marked as such. CAP strongly recommends that advertisers “disclose advertising content using a clear term that is visible at first glance” and additionally use other tags (such as those identified in consumer research) in ads read by the host.

The guidelines enter into force on August 16, 2024.

The FCA publishes final guidance on countering greenwashing

The UK Financial Conduct Authority (FCA) has published final guidance on its anti-eco-darkwashing regulations, which comes into force on 31 May 2024 and will apply to all regulated firms in the UK. Find more details in our Insight.