The Advertising Standards Authority (ASA) has released an updated Advertising Standards Code, taking effect in early 2027.

The Code – which sets out rules for responsible advertising – has been refreshed to keep pace with recent ASA decisions and shifting community standards.  Changes include a new standalone principle on environmental responsibility, rewording some rules for greater clarity, and new guidance on AI use and offensiveness.

When do the new rules apply?

The new Code applies to new advertising from 1 February 2027, and to all advertising within the ASA’s jurisdiction from 1 April 2027.

What has changed and why?

The ASA consulted on proposed changes earlier this year (see our earlier update here) and has now adopted many of them.  Key changes, beyond clarifying some existing rules and guidance, are:

  • Environmental claims – a new standalone principle and increased guidance:

    A new principle for environmental responsibility has been added to the Code, to give environmental responsibility the same status as the two existing principles (social responsibility and truthful presentation). This reflects that environmental protection is relevant to both existing principles, and submissions encouraging the ASA to clearly signal the importance of environmental protection and avoiding greenwashing in responsible advertising.

    The new Code also expands guidance on environmental claims, including on what is needed to show a "meaningful" environmental advantage in the context of claims that something is better for the environment – specifically that it must be:

    • quantifiable and supported by credible data
    • relevant across the product or advertising life cycle
    • clearly contextualised and validated by recognised standards or frameworks
    • material enough to influence environmental outcomes or consumer choice.

    New guidelines also:

    • clarify when an ad "encourages environmental damage, degradation or pollution" – for example, by trivialising or glamourising harmful practices, or portraying actions that are grossly prejudicial or harmful to environmental protection
    • require that certifications, labels and symbols are used accurately, without implying a broader endorsement than is warranted.

  • AI in advertising – new guidance:

    The Code already applies to ads that use AI, but new guidance helps advertisers understand how its requirements apply to AI-generated content. Key points include:

    • review AI-assisted content carefully for inaccurate, exaggerated or unsubstantiated claims, or misleading testimonials
    • take particular care when using AI to:

    • create or alter images, video or audio

    • depict products, services or results

    • simulate real people, voices or events (ie using deepfakes)

    • create realistic demonstrations or before-and-after representations

    • consider disclosure if AI use could materially influence how consumers understand an ad – but remember that labelling an ad as AI-generated won't necessarily stop it from being misleading. Disclosure labels like 'AI-generated image' or 'AI-generated person' should be considered in specific situations, such as where AI is used to:

    • create a realistic person who does not exist, or replicate a person's likeness or voice

    • depict an event or outcome that did not occur, which consumers may assume is real

    • create product imagery that materially differs from the actual product.

• Offensiveness – new guidance and removal of the "widespread" offence threshold:

The offensiveness rule, which attracts the most complaints, has been clarified to drop the "widespread offence" threshold, and remove references to "indecent" (to avoid confusion with the Films, Videos and Publications Classification Act). Guidance also clarifies that offensiveness will be assessed based on how a reasonable person would view it, considering factors like context, likely audience, medium and prevailing community standards.

New standalone guidance on offensiveness gives more detail on how the rule is applied, with examples.

• Other tweaks and clarifications, including:

  • clearer guidelines on advocacy advertising (eg political and issues-based advertising), including a requirement that heading, layout and language clearly show whether a statement is a fact or opinion

  • tweaks to the privacy rule to better align with the Privacy Act

  • removal of the rule requiring consumer consent for personalised direct advertising communications (given it relates to a marketing practice rather than ad content or placement, and overlaps with the Unsolicited Electronic Messages Act and Privacy Act)

  • additional guidance about what it means to encourage dangerous behaviour, unsafe practices, and anti-social behaviour – for example, wording or imagery that trivialises or accepts it.

What does this mean for your business?

The Code's core requirements are largely unchanged, with most new requirements being nuanced and/or provided as guidance. However, ASA decisions can turn on the interpretation of a single word. Advertisers will need to assess their ads against the new requirements with fresh eyes.

Contact our consumer law team for help with reviews of advertising materials, in connection with ASA complaints, or to update your compliance programme to reflect the new Code and guidance.

Co-authored by Nicole Arundell (Law Clerk).