ASA Crack the Whip on Misleading Ads

The UK's Advertising Standards Authority (ASA) has banned advertisements for health brands Huel and Zoe, fronted by entrepreneur and influencer Steven Bartlett, for failing to disclose his financial ties to the companies. The ASA's decision highlights increasing scrutiny on influencer marketing, particularly regarding transparency in commercial relationships.

Lack of Transparency

Steven Bartlett, best known as the host of The Diary of a CEO podcast, is a significant figure in the British business world. He holds a board position at Huel and has invested in Zoe, yet the ads did not clarify these affiliations. The ASA deemed this omission "misleading" as the videos did not comply with the Committee of Advertising Practice (CAP) code, which mandates that ambassadors and influencers disclose any financial interests when endorsing products.

Despite providing glowing testimonials for both brands, neither ad mentioned Bartlett’s financial stake in the businesses. Huel and Zoe defended their ads, arguing that consumers typically understand that a commercial relationship exists when a celebrity endorses a product. However, the ASA dismissed these defences, ordering that the ads not be posted in their current form again.

The latest ruling forms part of a broader crackdown on misleading influencer marketing by the ASA. In a similar case earlier this year, the watchdog banned six ads from entrepreneur Grace Beverley, which also failed to disclose commercial ties adequately.

Miles Lockwood, Director of Complaints and Investigations at the ASA, noted that the case set a precedent for influencer marketing, emphasising that "an easily visible #ad makes all the difference" and that the public should not have to "play detective" to discern whether content is paid for.

Considerations for Compliance

For small business owners tipping their toe in influencer marketing, the ASA’s ruling is a timely reminder to maintain transparency in all advertising efforts. Here are some critical steps to ensure compliance:

• Transparency: Ensure that any influencer or ambassador promoting your products discloses their financial relationship with your business. This can be done using tags such as #ad or #sponsored prominently within the post.

• Educate Influencers: Inform influencers of their legal obligations under the CAP code.

• Review Marketing: Regularly audit your marketing materials to ensure all advertisements, especially those involving influencers, comply with ASA regulations.

• Legal Consultation: Consult a legal professional specialising in advertising law to review your influencer contracts and marketing strategies.

Penalties for Non-Compliance

Failing to comply with the ASA’s regulations can lead to several penalties that small business owners in the UK should be aware of:

• Ad Bans: As seen with Huel and Zoe, the ASA can order non-compliant advertisements to be removed or banned from future publication.

• Reputational Damage: The ASA frequently publishes rulings on non-compliance, which can result in negative publicity.

• Legal Action: Persistent non-compliance with the ASA’s rulings can lead to further action, including referral to Trading Standards or the Competition and Markets Authority (CMA).

• Loss of Trust: Failing to be transparent can erode consumer trust, which is invaluable for any business, particularly small ones.

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