Why Your Business Cannot Use Misleading Advertising to Attract Customers 

Summary

• Misleading advertising is banned under UK consumer protection law, now led by the Digital Markets, Competition and Consumers Act 2024.
• The Competition and Markets Authority enforces these rules directly and can fine businesses up to 10% of worldwide turnover.
• The Advertising Standards Authority can also order you to withdraw or amend a non-compliant advert.
• This guide explains misleading advertising and its consequences for businesses in the UK.
• LegalVision’s business lawyers specialise in advising clients on advertising and consumer law compliance.

Tips for Businesses

Check every claim is accurate and can be backed by evidence before it goes live. Avoid hidden costs and deceptive pricing. Disclose paid or incentivised content. Keep records that support your claims, and get a legal review of high-risk campaigns before you publish.

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On this page

• How Do Consumer Protection Laws Misleading Advertising? 
• What Are the Legal Consequences of Misleading Advertising?
• How the DMCCA Changed Enforcement
• How Can Businesses Build and Maintain Consumer Trust Through Advertising?
• What Are Some Ethical Considerations Regarding Misleading Advertising?
• What is the Role of Advertising Standards?
• Key Takeaways
• Frequently Asked Questions

Misleading advertising is any marketing that contains false information, or leaves out something important, and causes a customer to make a decision they would not otherwise have made. In the UK it is banned under consumer protection law, now led by the Digital Markets, Competition and Consumers Act 2024. The Competition and Markets Authority enforces these rules and can fine businesses up to 10% of worldwide turnover. The Advertising Standards Authority also polices adverts against the CAP Code and can order content to be withdrawn or amended. Penalties range from fines to reputational damage and restrictions on how you trade. This article explains why your UK business cannot use misleading advertising to attract customers.

How Do Consumer Protection Laws Misleading Advertising? 

The cornerstone of misleading marketing regulations in the UK lies in consumer protection laws. These laws aim to safeguard the interests of consumers and maintain a fair marketplace. 

The Consumer Protection from Unfair Trading Regulations 2008 (CPRs) is a crucial piece of legislation governing UK advertising practices. Under the CPRs, businesses cannot engage in unfair commercial practices, including misleading advertising.  

Misleading advertising includes any communication that:

• contains false information or deceives consumers; and 
• causes or is likely to cause them to make a decision they would not otherwise have made.  

This encompasses many practices, from fraudulent claims about product features to failure to provide material information and deceptive pricing strategies.

What Are the Legal Consequences of Misleading Advertising?

The consequences of using misleading advertising can be severe for businesses in the UK. The Competition and Markets Authority (CMA) enforce consumer protection laws. If a business is found guilty of misleading advertising, it can face hefty fines and legal action.

Fines imposed on businesses violating consumer protection laws are not only financial but can also result in reputational damage. Adverse publicity and a loss of consumer trust can have long-lasting effects on a company’s bottom line.  

In extreme cases, businesses may be required to cease misleading or false advertising immediately. Additionally, repeat offenders may face more severe penalties, including the possibility of being barred from certain business practices.

How the DMCCA Changed Enforcement

Until recently, misleading advertising was policed mainly through the Consumer Protection from Unfair Trading Regulations 2008, and the CMA had to go to court to act. That changed when the consumer protection provisions of the Digital Markets, Competition and Consumers Act 2024 came into force on 6 April 2025.

The CMA can now decide for itself whether a business has broken consumer law. It no longer needs a court ruling first. Where it finds a breach, it can order refunds for customers and impose fines of up to 10% of a business’s worldwide turnover. It can add daily penalties while a breach continues.

This is a large shift in risk. A misleading price, a fake discount or an unsupported claim can now lead to a direct financial penalty rather than a slow court case. Early enforcement has already produced results, including a settled investigation into the AA that led to fines and consumer refunds.

How Can Businesses Build and Maintain Consumer Trust Through Advertising?

Trust is a precious commodity in business. In an era where consumers have access to abundant information and are increasingly savvy, dishonest marketing practices are likely to be exposed. Once trust is compromised, rebuilding it becomes a challenging and time-consuming task.

Consumers who feel deceived by misleading advertising are likely to share their negative experiences through:

• word of mouth; 
• online reviews; and 
• social media platforms.  

For example, the interconnected nature of the digital age means that a single dissatisfied customer can influence the opinions of many others.

Maintaining a positive reputation is crucial for long-term success, and ethical advertising practices play a pivotal role in achieving this goal and allowing consumers to make informed decisions.

What Are Some Ethical Considerations Regarding Misleading Advertising?

Beyond the legal ramifications, there are compelling ethical reasons why businesses should refrain from misleading advertising. Ethical behaviour is not only a moral imperative but is also increasingly becoming a decisive factor for consumers when choosing where to spend their money.

Businesses prioritising honesty and transparency in their advertising build a foundation of trust with their customers. Ethical advertising is not just a legal requirement but a commitment to treating customers respectfully and providing accurate information to make informed choices.

In the long run, ethical practices contribute to:

• brand loyalty; 
• positive customer relationships; and 
• sustainable business growth. 

As such, engaging in responsible advertising is a form of business protection that can ensure positive relationships with the average consumer.

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What is the Role of Advertising Standards?

The UK has established regulatory bodies like the Advertising Standards Authority (ASA) to ensure fair advertising practices. The ASA monitors and regulates advertising content across various media channels, including print, online, and broadcast. It operates a UK Code of Advertising that sets out the standards it expects from advertisers and businesses.

Businesses must be mindful of the ASA’s guidelines to avoid violating advertising standards. The ASA has the authority to investigate complaints. If the ASA finds that your business’ advertisement is misleading or in breach of the Code, it can order the advertiser to modify or withdraw the ad.

Compliance with the ASA’s standards is a legal obligation and an essential component of maintaining a positive brand image.

Key Takeaways

In the competitive UK economy, your business should recognise the advantages of lawful and truthful advertising. If your business engages in misleading advertising, it might face financial penalties and reputational damage that can have long-lasting effects. By adhering to legal and ethical standards, your business will comply with the law and cultivate positive customer relationships, leading to long-term success in the marketplace.

If you need legal assistance advertising your business in the UK, our experienced regulatory lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.

Frequently Asked Questions

Who enforces advertising rules in the UK?

The Advertising Standards Authority reviews adverts and investigates complaints. It can require you to change or remove non-compliant content. The Competition and Markets Authority enforces consumer law directly and can fine businesses, and can refer serious cases to Trading Standards or Ofcom.

Can the CMA fine my business for misleading adverts?

Yes. Under the Digital Markets, Competition and Consumers Act 2024, the CMA can impose penalties of up to £300,000 or 10% of worldwide turnover, whichever is higher, and add daily fines while a breach continues.

Do advertising rules apply to influencer posts?

Yes. Businesses are responsible for making sure influencer content follows advertising law. Influencers must clearly label advertising using terms such as Ad or Paid Partnership, provide evidence for claims and avoid exaggeration.

Can I be penalised for fake or incentivised reviews?

Yes. The Digital Markets, Competition and Consumers Act 2024 makes it an offence to post or commission fake reviews, or to publish reviews in a misleading way. Where a review is incentivised, you must disclose it.