Do Influencers Have To Say It’s An #Ad? (2025 Updated)

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Social media continues to evolve, and influencer marketing is now a well-established industry in 2025. While it was once a lightly regulated sphere, it is now subject to even tighter scrutiny to ensure that advertising practices remain fair and transparent.

You may be familiar with the New Zealand Consumer Guarantees Act (CGA), which protects consumers from unfair trading practices — ensuring that they can seek legal recourse if their purchase was influenced by deceptive claims.

There’s a similar framework specifically for influencer marketing, designed to protect consumers from misleading promotions and to support informed decision-making. Simply put, influencers have a legal obligation to disclose their commercial partnerships when endorsing a product, so that the authenticity of the content is not compromised.

If you are an influencer or a brand engaging with social media influencers, it is crucial to understand your obligations under the current regulations and to ensure that both parties work together to remain compliant. For further guidance, you might want to read our article on Influencer Agreements and Consumer Law for Businesses.

So, what rules apply to you in 2025?

What Is The Advertising Standards Authority (ASA)?

The Advertising Standards Authority (ASA) is the national body responsible for regulating advertising in New Zealand. Their role is to uphold fair marketing practices, promoting transparency and ensuring that advertisers sell products honestly. The ASA now provides even more detailed guidelines to address the rapid growth and evolving nature of digital advertising.

These regulations are essential to protect consumers against unfair marketing practices, ensuring that any form of advertising remains truthful and not misleading.

Hilary Souter, the Chief Executive of the ASA, has emphasised that the “ASA Codes of Practice are fully aligned with New Zealand law, meaning rulings are based on actual consumer complaints and robust legal standards.” For more information on how the ASA impacts advertising practices, please see our Guide on Compliance with Consumer Guarantees.

With the significant rise in influencer marketing, the ASA introduced a Code for Social Media Advertising that applies to all online promotional activities.

Many influencers successfully market products or services to their audience, often blending sponsored content with organic posts. However, if paid partnerships or sponsorships are not adequately disclosed, this can lead to breaches of the rules regarding misleading and deceptive conduct. Consumers might mistakenly believe that the content is entirely genuine.

To address these concerns, several updates have been implemented in the industry guidelines for 2025.

What Is The New Influencer Code Of Practice?

The Code of Practice in 2025 sets out the standards for online advertising in New Zealand. Among its key requirements:

The relationship between influencers and brands must be clear, obvious, and upfront.
The nature of the relationship must be expressed in a manner that is easily understood by the audience.

What Are The Penalties?

While the Code of Practice itself is not legally enforceable with financial penalties like the CGA, breaches are taken very seriously within the influencer community. Infringements are publicly disclosed, which can cause lasting damage to an influencer’s or a brand’s reputation. In today’s highly connected environment, maintaining public trust is paramount; even without fines, the reputational loss can be career-impacting.

Even in the absence of a monetary fine, reputational damage in 2025 can result in a significant loss of follower engagement and business opportunities. For advice on protecting your personal or brand reputation, consider our tips on safeguarding business information and reputation.

How Do I Know If It Applies To Me?

The Code applies to advertisers or marketers if:

They have a reasonable degree of control over the content being published.
The content is designed to attract attention in a way that promotes a product.

In most cases, this would include sponsored posts across social media platforms. To learn more about your specific obligations, visit our Industry Regulations Guide.

What Should Influencers Do?

If you are an influencer, it is crucial that you thoroughly understand your obligations under the Code and maintain a transparent business relationship with your sponsors. This not only protects you legally but also reinforces the trust your audience places in you.

When creating a sponsored post, you should:

Include relevant hashtags such as #ad, #sponsored, or #paidpartnership.
Use platform-specific features like Instagram’s ‘paid promotion’ or the paid partnership tag.
Explicitly disclose your partnership in the post caption.

The current guidelines are primarily aimed at brands, so if you are an influencer, it is vital that you and your legal adviser review your agreements to ensure they comply with the Code. For example, if your sponsor insists on non-disclosure, this would contravene the Code. You should ensure that your Influencer Agreement explicitly mandates appropriate disclosure. You may also wish to consult our resource on Legal Essentials for Online Marketing to stay updated with best practices.

What Kind Of Post May Breach The Code?

Simply tagging a brand or product does not suffice under the Code. For instance, a post that only includes hashtags like #gifted or #collaboration may not meet the disclosure requirements.

If you fail to clearly disclose a partnership, thereby creating an impression that the content is purely organic, this can be considered a breach. The safest approach is to use the platform’s paid partnership features and to clearly mention your commercial relationship in the caption and in your Stories. For further clarity on drafting compliant content, see our contract review guide.

Moreover, while the Code itself does not levy financial penalties, any misleading conduct may breach the Fair Trading Act. Under this Act, the Commerce Commission has the authority to issue fines of up to NZ$200,000 for individuals and over NZ$600,000 for companies.

What About The Fair Trading Act?

As mentioned, the Code is closely aligned with the Fair Trading Act 1986, particularly section 13, which addresses misleading and deceptive conduct. This is highly relevant to social media marketing, as false representations by influencers can have significant legal consequences.

Influencers must ensure that:

Sponsorship and paid partnership arrangements are clearly disclosed to avoid misleading the audience.
No false or unsubstantiated claims are made regarding the products or services being promoted.
They genuinely utilise the products they endorse, ensuring authenticity in their content.

Emerging Trends and Additional Considerations

In 2025, influencer marketing continues to adapt to new social media trends and technologies. Virtual influencers and augmented reality experiences are becoming more prevalent, so it is important to regularly review your branding strategies and legal agreements. Our resources on startup legal tips and business setup essentials can help ensure you are legally protected and compliant with evolving digital marketing standards.

Need Help?

With the increasing regulation of online advertising, particularly influencer marketing, staying compliant is more critical than ever. To avoid potential legal pitfalls and reputational damage, it is advisable to consult a lawyer to understand your specific obligations in today’s landscape.

Which hashtags should you always include in sponsored posts?
How transparent must your commercial partnerships be?
Is your current agreement with a brand compliant with the 2025 Code?
If you have already signed a non-compliant agreement, what steps can you take to amend it?
What should you do if a brand refuses to comply with the disclosure requirements?

You can reach out to us at [email protected] or call us on 0800 002 184 for an obligation-free chat. For further information on digital marketing contracts and other legal matters, check out our Contracts and Intellectual Property sections.

Rowan Gardoce

Rowan is the Marketing Coordinator at Sprintlaw. She is studying law and psychology with a background in insurtech and brand experience, and now helps Sprintlaw help small businesses

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