Regulatory Radar: quick takes

This section gives a sample of the extensive updates that form our bi-monthly Regulatory Radar: quick takes publication

Advertising and marketing

Report on influencer ad disclosure rates on social media

The Advertising Standards Authority (ASA) published a report on disclosing influencer ads on Instagram and TikTok. This is the second report on the topic, and the ASA used their AI-based Active Ad Monitoring tool to assist with the disclosure rates on the platform. The tool monitored a sample of accounts consisting of influencers that were flagged in the first report, those who had been the subject of complaints and a random selection of accounts. The ASA estimates that 57% of content published by influencers on Instagram and TikTok in the UK is disclosed as advertising, the ASA found that while disclosure rates are improving, the overall rate of disclosure is still not satisfactory.

AI regulation

EU publishes the AI continent action plan

The European Commission presented the "AI continent action plan", which aims to establish Europe as a global leader in AI by fostering innovation, ensuring ethical development, and promoting trust. Key priorities include investing in AI infrastructure, strengthening the data ecosystem, targeting sectors that will benefit from AI, and enhancing research and skills and a focus on regulatory support.

Competition

CMA Growth and Investment Council meeting

The Competition and Markets Authority (CMA) is conducting an inquiry into the UK veterinary market to assess whether a lack of transparency and competition is driving higher costs for pet owners. The investigation focuses on identifying the key challenges faced by consumers and professionals in the sector, with plans to propose remedies that promote fairer practices and improve consumer outcomes. Stakeholders, including veterinary professionals and businesses, have been consulted to provide insights into current market dynamics. A series of "working papers" setting out evidence gathered, and initial analysis will be presented in early 2025, with conclusions expected to be published in summer ready for consultation.

Government sets new strategic priorities for the CMA

The Department for Business and Trade, in collaboration with the Treasury, has issued a new strategic steer for the Competition and Markets Authority (CMA) as part of the government's broader regulatory reform agenda. This updated steer redefines the CMA's priorities, emphasising the importance of promoting growth and investment while maintaining free and fair competition and safeguarding consumer rights. Additionally, it highlights the need to reduce business uncertainty by encouraging the CMA to adopt a proactive, transparent, timely, predictable, and responsive approach in its operations. This direction aligns with the government's forthcoming industrial strategy. The CMA is expected to demonstrate how it incorporates this steer into its activities and provide an account of its application in its annual report.

Competition

CMA Executive Director outlines enforcement priorities and recent cases

Juliette Enser, Executive Director for Competition Enforcement at the Competition and Markets Authority (CMA), outlined the authority's recent enforcement activities and future priorities in a speech delivered on 15 May 2025.

The CMA has imposed nearly £650m in fines over five years, targeting various anti-competitive behaviours. Recent cases include £100m in penalties against investment banks for colluding on UK government bonds, investigations into sports broadcasters over freelancer pay coordination, and £77m in fines for car manufacturers regarding green advertising agreements. A pharmaceutical case resulted in £23m paid directly to the NHS.

Looking forward, the CMA will intensify focus on public procurement, utilising data analytics and AI to detect bid-rigging. The authority has introduced a "4Ps" framework emphasising pace, predictability, proportionality, and process improvements. This includes a new statutory duty of expedition and enhanced guidance for beneficial business collaborations, particularly in sustainability and industrial strategy sectors.

Data and cyber

Status update on the UK’s new Data (Use and Access) Bill

The UK's Data (Use and Access) Bill is progressing through the House of Commons after completing its passage through the House of Lords. The ICO supports the legislation, though controversial amendments regarding scientific research definitions and web crawler transparency requirements have been dropped from the Commons version. Key remaining provisions include enhanced protections for children's data and "higher protection matters" for services likely accessed by minors. The Government had aimed to complete the parliamentary process by Easter 2025, with potential implications for the EU's UK adequacy review, which may be delayed from June to later in the year to accommodate assessment of the final legislation.

Cyber_Bytes – Issue 74

In the latest edition of Cyber_Bytes (our regular round-up of key developments in cyber, tech and evolving risks) we cover the following:

RPC Cyber App: Breach Counsel at Your Fingertips
UK government ransom ban – what does this mean for insurance?
DPP Law Ltd faces a £60k penalty notice
ICO issues notice of intent to fine 23andMe £4.59m for data breach
yhe high stakes of cybersecurity issues in retail
main challenges of EU AI Act-GDPR interplay identified by Member States
RPC at London Tech Week – 12 June 2025.

Ten years of the Modern Slavery Act: renewed focus on business responsibility

The updated Transparency in Supply Chains (TISC) guidance, released by the Home Office in March 2025, marks ten years since the Modern Slavery Act 2015. Initially praised for its stance against slavery and forced labour, Section 54 mandated large UK businesses to publish annual statements addressing risks in their supply chains. However, the Act has faced criticism for lacking enforcement. The new Guidance encourages organisations to move beyond compliance and embrace transparency, introducing a two-tier disclosure system, ESG considerations, and calls for increased accountability. Despite these updates, key obligations remain voluntary, and meaningful legislative reform is still needed.

ESG

Guidance on ocean bound plastics used in food packaging

Following a review of The Joint Expert Group for Food Contact Materials (FCMJEG) assessment on using ocean bound plastics (OBP), the Food Standards Agency (FSA) and Food Standards Scotland (FSS) have issued updated guidance. The guidance advises businesses to avoid using abandoned environmental plastic, including ocean bound plastics, in food contact materials (FCMs), which includes supermarket packaging for meat and fish. Both regulators believe that there is insufficient evidence to support a safe usage of this particular type of plastic in food packaging.

Employment

Financial services

Consultation response on the regulation of BNPL products

HM Treasury published a response to the consultation on proposals to regulate the Buy-Now, Pay-Later (BNPL) market. The consultation sought feedback on proposals that would safeguard consumers who use BNPL products. The proposed plan aims to ensure those using BNPL products receive clear information, avoid borrowing that is unaffordable, and also have strong rights when any issues arise. The response to the consultation found that there is support for regulation of BNPL products, with the government ready to lay the draft affirmative statutory instrument (The Financial Services and Markets Act 2000 (Regulated Activities etc.) (Amendment) Order 2025).

Plans to streamline how firms report complaints data

The Financial Services Authority (FCA) announced plans to improve how firms can submit complaints data. According to the plans, firms could be able to consolidate the current five returns into one. The FCA will also standardise its data requests so that firms can predict and plan their data returns accordingly. The FCA has opened a consultation paper, which is open for until 24 July 2025.

HM Treasury consults on proposed reforms to the Consumer Credit Act 1974

HM Treasury published a consultation on the proposed reforms to the Consumer Credit Act 1974 (CCA). The reform is envisioned in two phases, with the consultation aiming to gather feedback on phase one. Phase one seeks to reform information requirements, sanctions and criminal offences and is aimed at lenders, trade bodies and consumer groups. The government aims to modernise the current regime to allow consumers to make informed decisions. The consultation will be open until 21 July 2025.

Medical and life sciences

Guidance on advertising hearing aids and hearing amplifiers

The Advertising Standards Authority (ASA) has provided guidance on distinguishing between hearing amplifiers and hearing aids in advertising. Hearing aids are medical devices and as such are regulated by the Medicines and Healthcare products Regulatory Agency (MHRA), while hearing amplifiers are consumer products designed to enhance environmental sounds for individuals without hearing loss. The ASA is reminding advertisers that claims for hearing amplifiers should avoid implying that the devices are substitutes for hearing aids or treat hearing loss. Doing otherwise carries the risk of making medicinal claims, which are acceptable if devices are registered with the MHRA.

Pensions

New service launched to foster pensions industry innovation

The Pensions Regulator (TPR) has introduced a new service to foster innovation in the pensions industry, aiming to enhance saver outcomes and support economic growth. The initiative seeks to remove unnecessary regulatory barriers by enabling early, transparent discussions with innovators. Key focus areas include improving administration and member experience, particularly during the decumulation phase, and exploring new investment and scheme models. The service offers discussion sessions with experts, collaborative industry events, thought leadership through blogs and reports, and streamlined support for emerging models like superfunds and collective defined contribution schemes. TPR will also collaborate with the Financial Conduct Authority (FCA) to align efforts and avoid duplication. Improving data quality remains a regulatory priority.

Tax, investigations and financial crime

Customs and excise quarterly update – May 2025

In the latest edition of Customs and excise quarterly update, we cover the following:

UK publishes draft CBAM primary legislation for technical consultation
Government backs British businesses to enhance trade
UK trade deal with India
Case reports
- Uflex Europe Ltd v HMRC [2025] UKUT 00057 (TCC)
- Roseline Logistics Ltd v HMRC [2025] UKFTT 427 (TC)
- Turkish Food Supplies Ltd v HMRC [2025] UKFTT 496 (TC)

V@ update – May 2025

In the latest edition of V@, our monthly update providing news and insightful analysis from the VAT world, we cover the following:

HMRC - Spotlight 70, highlighting tax avoidance arrangements used by state-regulated care providers to reclaim VAT.
HMRC Guidance on road fuel scale charges for VAT
HMRC updated internal manual on VAT registration
Case reports
- Tony John Shepherd v HMRC [2025] UKFTT 00423 (TC)
- Roseline Logistics Ltd v HMRC [2025] UKFTT 427 (TC)
- JD Wetherspoon PLC v HMRC [2025] (TC/2022/12962)