Harper James advises UK businesses on the laws of England and Wales governing sponsorship agreements, advertising disclosures and marketing campaigns. Sponsorship arrangements cover more than payment for a logo placement: they include financial support, free products, services, affiliate commissions and other benefits provided in return for promotional exposure.
The UK Code of Non-broadcast Advertising and Direct & Promotional Marketing (CAP Code) requires marketing communications to be obviously identifiable as advertising. A sponsored social media post, article, video or event promotion must make the commercial relationship clear before the audience engages with the content. Labels such as “Ad” or “Advertisement” are generally clearer than vague terms such as “in association with”, “thanks to” or “spon”.
The disclosure should be prominent, understandable and appropriate to the medium. For influencer content, it should appear in the post or at the beginning of a video, rather than being hidden among hashtags or placed after a “read more” link. A sponsor remains responsible for agreeing suitable wording and monitoring compliance where the campaign is delivered through an agency, influencer or other third party.
A sponsorship agreement should define the parties, campaign objectives, deliverables, publication dates, channels, approval process and payment or non-cash benefits. It should also address ownership and permitted use of trade marks, images, names and content. The agreement normally allocates responsibility for compliance with the CAP Code, sector-specific rules, intellectual property rights, data protection requirements and platform terms.
Businesses should set rules for claims, testimonials and comparisons. Claims about performance, health, environmental benefits or financial outcomes require appropriate substantiation. Sector restrictions apply to products such as alcohol, gambling, financial services, medicines and products directed at children. A contract should provide approval, correction and withdrawal procedures where content breaches advertising rules or creates a regulatory risk.
Television and radio sponsorship is also subject to Ofcom rules, including requirements governing sponsorship credits and the separation of advertising from editorial content. Product placement and programme sponsorship have additional restrictions, particularly in relation to news, current affairs, children’s programmes and certain regulated products. Online campaigns can also involve privacy and direct marketing obligations where the sponsor collects personal data, uses tracking technologies or sends targeted messages.
The Advertising Standards Authority investigates complaints and can require non-compliant advertising to be amended or removed. It can also refer persistent or serious cases to other regulators or enforcement bodies. Before launch, a business should document the sponsorship arrangement, review the proposed content and disclosures, obtain evidence for material claims, and keep records showing how approvals and monitoring were carried out.