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Legal & Compliance for Influencers

Overview

Influencer marketing is now a well-established part of the digital economy, but with its growth comes increasing scrutiny. Regulators, brands, platforms, and the public expect influencers to comply with a range of legal obligations – particularly those concerning advertising, consumer protection, financial promotions, and intellectual property.

Operating in this space means navigating rules set by authorities such as the Advertising Standards Authority (ASA), the Competition and Markets Authority (CMA), and the Financial Conduct Authority (FCA).

Failure to comply with these legal frameworks can result in reputational damage, financial penalties, content takedowns, or even personal liability.

This article outlines common compliance issues and best practice recommendations for influencers and brands engaging in influencer marketing. It is intended for general informational purposes only and does not constitute legal advice.

Advertising Standards & Transparency

Transparency in advertising is a core requirement under both the ASA and CMA’s guidance. Influencers are legally obliged to disclose commercial content clearly and unambiguously. Any post that involves payment, gifted items, or a commercial relationship, such as promoting a brand the influencer owns or has financial interest in, must be identified as advertising.

This disclosure should appear at the beginning of a post, caption, or video, and use terms that leave no room for ambiguity. The ASA recommends label such as #Ad, Advert, or Paid Partnership, which must be prominent and easy to spot. Hiding disclosures in a list of hashtags, buried in comments, or behind expandable captions is not compliant.

Common compliance failures include the use of vague terms such as “#spon”, “#collab”, or “in association with”, which do not meet the standards for clear disclosure. Misleading “native” advertising that appears to be organic content but is in fact sponsored can also attract enforcement action.

Non-compliance with advertising rules may lead to public rulings, removal of posts, damage to relationships with brands, and enforcement action from regulatory bodies.

As influencer marketing continues to professionalise, consistent and transparent disclosure is not only a legal obligation, but a trust-building practice for an influencers’ audience.

Financial Promotions & FCA Compliance

Promoting financial products or services introduces a much higher level of legal risk. This includes content relating to cryptocurrency platforms, trading apps, investment tools, or buy-now-pay-later schemes. Under UK law, such promotions are regulated by the Financial Conduct Authority (FCA). Section 21 FSMA states that a person must not, in the course of business, communicate an invitation or inducement to engage in investment activity unless (i) the financial promotion is communicated by an authorised person, (ii) the content of the promotion is approved by an authorised person, or (iii) an exemption applies. Thus the financial promotions regime applies to both influencers and the firms or companies who engage the influencers as affiliate partners.

If an influencer is not authorised by the FCA, they cannot legally communicate financial promotions unless the content has been pre-approved by a firm authorised to do so. This is a critical point: influencers who post unapproved promotions could be held personally liable, even if acting in good faith or on behalf of a brand. It is also crucial that influencers do not rely on pre-existing FCA authorisation for a separate activity as anyone who is authorised by the FCA, is only authorised for that specific activity.

Influencers will be in breach of section 21 FSMA if they (i) share non-compliant financial promotions, even if approved by an authorised person; or (ii) make unauthorised and illegal promotions. These includes where celebrities which are paid for promoting financial products or other influencers who share recommendations on what to do.

Content relating to financial products must be fair, clear, and not misleading. This includes providing appropriate risk warnings, ensuring accuracy of performance claims, and avoiding exaggerated promises. Paid promotions, referral codes, or affiliate links relating to financial services must be clearly disclosed.

High-risk areas include cryptocurrency promotions, investment recommendations, and any referral activity involving regulated products. Given the heightened regulatory attention in this space, influencers must exercise particular caution when working with fintech or financial brands.

Copyright and Use of Third-Party Content

Under the Copyright, Designs and Patents Act 1988, influencers must respect the rights of content creators and other third parties when using images, music, logos, or videos not created by themselves. Copyright protects original works, including product photos, user-generated content (UGC), and brand materials [refs].

Simply reposting or sharing content without permission, even with attribution, can constitute copyright infringement. Tagging the creator or brand does not provide a legal right to use the material.

To stay compliant, influencers should use their own original content or obtain express permission from the copyright holder. Special care should also be taken when using music, memes, or viral content, as these often involve layered or unclear rights ownership.

Despite the above, there are certain exceptions to copyright that allow individuals to use the work of others without permission, which we can advise on further.

Brand Partnership Contracts

Entering into a commercial agreement with a brand requires careful review of the contract terms. These agreements often include exclusivity clauses, usage rights, payment schedules, and disclosure requirements, all of which can have significant legal and financial implications for influencers.

Exclusivity clauses may restrict the influencer from working with competing brands for a defined period. Usage rights may allow the brand to reuse or repurpose content across different platforms or in perpetuity, which could limit the influencer’s control over their work. Payment terms, including timing, method, and conditions, should be clearly defined to avoid disputes.

Many agreements also include strict disclosure wording that influencers are contractually obligated to use in sponsored content.

Legal advice before signing can help protect intellectual property rights and ensure the influencer is not taking on risk that properly belongs to the brand, particularly around consumer law compliance.

Platform Terms and Content Removal

In addition to legal requirements, influencers must also adhere to the terms of service and community guidelines of the platform they use, which have their own rules regarding acceptable content, advertising, intellectual property, and monetisation.

Breaches can result in serious consequences, including removal of posts, loss of monetisation, account suspension, or permanent bans.

Platform enforcement is often automated or swift, with limited avenues for appeal.

It is therefore essential for influencers to stay informed about changing terms, particularly around branded content tools and use of third-party media.

How We Can Help

Quastels LLP can advise influencers, content creators, talent managers, and brands on a full range of legal and compliance matters within the influencer marketing ecosystem. Our services include reviewing influencer agreements, ensuring regulatory compliance with the ASA, CMA, and the FCA, resolving intellectual property disputes, and developing risk mitigation strategies.

Whether you are launching a campaign, signing a long-term partnership, or facing content takedown, we can provide clear and commercially focused legal advice to help you stay complaint and protect your brand.

To discuss your requirements and find out how we can help you, please get in touch.

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A Blueprint for Expansion: Structuring UK Brands for the Indian Market

The next wave of British growth will not come from new products but from new jurisdictions. For UK brands, India represents a paradox: a market of unmatched scale, yet a legal environment that penalises haste. The challenge is not entry but execution, how to transplant a UK governance framework into a jurisdiction defined by procedural intensity, overlapping regulators, and rapid digitalisation. The firms that succeed will treat legal architecture as commercial strategy, not compliance cost.

I. The strategic context: post Brexit bilateralism

The UK’s trade policy now leans on bilateral corridors. The UK and India Free Trade Agreement, signed in July 2025 but pending ratification, will eventually set a template for services mobility, data standards, and cross border taxation. For now, entry into India still depends on sector specific foreign investment rules, the Companies Act 2013, and FEMA’s capital control regime. British boards must therefore approach India not through the lens of emerging market risk but as a rules-based jurisdiction where legal form is commercial advantage.

India’s legal environment is moving closer to the UK’s. Corporate filings are digital, directors are identifiable through national KYC systems, and enforcement is increasingly data driven. This convergence allows UK brands to operate in a familiar governance ecosystem, but only if they maintain structural precision from the start.

II. Structuring with discipline: law as market entry strategy

The fundamental decision is the choice of legal vehicle. A wholly owned subsidiary remains the most robust model for brand protection, tax efficiency, and repatriation. It allows control over intellectual property, consistent transfer pricing arrangements, and eligibility for India’s 22% corporate tax rate under section 115BAA.

UK counsel should treat incorporation not as a procedural act but as a constitutional one. Every clause in the Articles of Association should reflect brand control, ownership, and board independence. Shareholder agreements must integrate UK corporate principles such as reserved matters, drag and tag rights, and director duties while remaining enforceable under Indian law. Many entrants rely on informal joint ventures that collapse once regulatory filings or ownership disputes arise.

Franchising and distribution models often appear simpler but create the opposite result: brand dilution, tax leakage through mischaracterised royalties, and unmanageable consumer liabilities. In the post Finance Act 2023 landscape, where India taxes royalties and technical fees at 20% subject to treaty relief, these structures can erode margins faster than any logistics cost.

III. Building people infrastructure: compliant mobility as competitive advantage

India’s demographics are an asset, but mobility rules are unforgiving. Without a social security agreement between the UK and India, every British assignee becomes liable to India’s Employees Provident Fund regime with a 12% contribution on full pay. Employment visas require a minimum salary of USD 25,000 and registration with the Foreigners Regional Registration Office.

Secondments must be drafted with precision. The Supreme Court’s Northern Operating Systems judgment classifies many inbound secondments as taxable manpower supply, creating GST and permanent establishment exposure. The best structures use dual contracts, Indian employment for operational control and UK employment for benefits continuity, and treat tax equalisation as an upfront budgeting exercise rather than a remedial cost.

UK brands should pre-empt mobility issues at the group policy level. Expatriate frameworks must reconcile UK employment protections, Indian payroll tax, and corporate residence tests. Compliance here directly influences profitability. A clean mobility strategy prevents double taxation, reduces payroll friction, and preserves managerial credibility with regulators.

IV. Governance and compliance: synchronising two legal systems

Expansion is now a governance challenge. India’s Significant Beneficial Ownership rules mirror the UK’s register of persons with significant control. Both demand transparency of ownership above 10%. Directors must complete identity verification under both the UK Companies House reforms effective November 2025 and India’s DIN based KYC systems. Boards that harmonise filings and maintain mirrored registers across jurisdictions avoid anti money laundering discrepancies that can stall banking or licensing.

Anti bribery procedures under the UK Bribery Act 2010 must extend into India’s procurement and state licensing framework. India’s Prevention of Corruption Act now penalises commercial bribery, and enforcement collaboration between agencies is increasing. Embedding adequate procedures into Indian operations is both lawful protection and market signal.

On data, the Digital Personal Data Protection Act 2023 introduces accountability similar to GDPR, while India’s CERT In requires incident reporting within 6 hours. UK brands must treat these as operational metrics. The UK Information Commissioner’s 72 hour window is no defence in India. Integrating incident response across both jurisdictions, using standardised encryption, retention, and audit trail protocols, turns compliance into reputational capital.

V. Profitability through legal precision

The primary cost of entry is regulatory friction. Every delay in registration, taxation, or data clearance converts into working capital loss. A structure that anticipates both UK and Indian compliance regimes delivers margins.

Key profitability levers are legal, not operational:

• Repatriation clarity through the India and UK tax treaty, using Form 10F and tax residence certificates to secure 10–15% withholding instead of 20%.
• Transfer pricing coherence using contemporaneous benchmarking under both OECD and Indian rules to prevent double adjustment.
• Data localisation avoidance by maintaining processing within permissible geographies and evidencing lawful transfer safeguards.
• Permanent establishment neutrality through contracts that keep control, risk, and remuneration within the Indian entity.

These factors define whether a UK patent records profits in London or defers them indefinitely in India.

VI. The advisory opportunity

Law firms and professional advisers now play a central role in translating UK governance standards into Indian enforceability. The task is multidisciplinary, combining immigration law, tax structuring, data compliance, and corporate governance. The real value lies in coordination, ensuring that the same narrative is defensible before the UK’s HMRC, Companies House, as before India’s Ministry of Corporate Affairs, Reserve Bank, and tax authorities.

For UK legal counsel, assisting brands to enter India requires a shift in mindset. India is not an exotic risk but a mirror market that demands British rigour in a different idiom. Advisory quality is measured by structural resilience, not volume of filings.

VII. The new tradecraft of expansion

The post Brexit British economy will depend on legal engineers as much as marketers. The India corridor is the proving ground. Brands that move first with coherent legal structures, clean shareholding, local governance, mobility compliance, and integrated data strategy will not only survive but set the benchmark for international expansion.

In an age where regulation defines market access, legality is brand strategy. The firms that internalise this will discover that compliance is not an obstacle to growth in India, it is the mechanism through which growth becomes sustainable.

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Ben Rosen Recognised in Spear’s 500 Tax & Trust Index 2025 as a Recommended Tax Lawyer

Quastels LLP is pleased to announce that Ben Rosen, Private Wealth & Tax partner, has been listed in this year’s Spear’s 500 Tax & Trust Index as a recommended Tax lawyer. 

About The Spear’s 500 Tax & Trust Index

The Spear’s 500 Tax & Trust Index is a highly regarded guide that showcases the leading advisers to ultra-high-net-worth individuals and family offices. It recognises specialists across a broad range of disciplines, including: 

• Tax Lawyers
• Tax and Trust Barristers
• Trusts, Structuring and Offshore Experts
• Contentious Trust Lawyers
• Probate and Wills Lawyers
• Accountants and Tax Advisers

Recognised for multi-jurisdictional expertise

Ben’s recognition in this index showcases his expertise in multi-jurisdictional work, and his experience in navigating the issues surrounding HNW individuals and international families with complex structures and needs. 

“Ben Rosen, who works with clients on property investments, trusts and family investment companies, tells Spear’s that his strength is not just in the tax expertise he provides, but in making complex and often emotional issues easier for his clients. ‘Being good at tax is a given; what makes an excellent adviser is making the information more digestible,’ he says.” 

– Spear’s Review, Spear’s 500

We congratulate Ben on this achievement, which highlights his commitment to delivering exceptional advice and service to our clients. 

Click here to read Ben’s profile in full. 

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