Five key policy priorities marketers need to know about

Lauren Hamm, Digital Policy Manager at WFA, and Alexandre Boyer, Policy Manager at WFA.

This is a year of change. Elections in large ad markets such as the EU, India, the UK – and of course the US – are already having an impact on political and regulatory priorities.

New governments, or even new signals from consumers to existing parties of government, have the power to drive additional legislation that could impact on how marketers are able to reach consumers.

We think policy changes in the following five key areas are likely to be a priority for new and returning legislators around the world:

More restrictions on targeting and personalisation

Stringent data protection laws are already in place in most countries but we are likely to see more. This is particularly the case in the EU, where a new ‘Digital Fairness Act’ is on the table. In addition, the US, India and Australia have passed or are debating proposals to limit the ability of companies to process children's data.

The WFA team is monitoring the evolution of the Digital Fairness Act and working with members in our Policy Action Group to devise a plan to engage with relevant policymakers and stakeholders. We have also launched a global policy tracker on child safety and privacy online.

Harnessing AI’s potential

AI and, particularly generative AI, offers immense opportunities in terms of innovation, efficiency and personalisation. However, it can also pose significant risks.

Globally, 24 jurisdictions have either passed or are debating AI legislation. While no one aims to regulate the use of AI for marketing purposes specifically – many new rules are likely to have implications on how brands can use this technology, particularly those recently adopted in the EU, China and the US states of California, Colorado and Utah.

The EU’s AI Act, for example, will require marketers to be more transparent when using AI. In particular, brands using AI-generated content in marketing assets, AI-powered chatbots or providing consumers with AI-powered experiences will be subject to numerous transparency requirements.

WFA has developed a regulatory tracker and a briefing on recently adopted rules to help brands. Our AI Community, bringing together over 650 senior marketers from more than 120 global brands, exchanges perspectives on best practice.

Influencer marketing firmly in the spotlight

Influencer marketing is attracting ad spend and consumer concerns in equal measure. This year’s sweep by EU consumer authorities found that just 20% of influencers systematically indicated the commercial nature of the content shared, for example.

While influencer marketing legislation in the US and the UK may not be on the immediate horizon, EU policymakers and Member States are reviewing whether self-regulation and existing legislation are fit for purpose.

WFA is working with advertising self-regulatory organisations (SROs) around the world to highlight the industry's self-regulatory efforts and create global best practice guidance for brands. The success of such initiatives will be critical in determining whether public concern leads ultimately to regulation.

EU paves the way on greenwashing

The EU is taking a global lead in addressing greenwashing with the upcoming Green Claims Directive, set to be finalised in 2025.

Brands will be required to follow strict guidelines when communicating green claims and the new rules will bring new administrative processes, including claim-by-claim third-party verification. 

There is uncertainty about how this far-reaching legislation would work in practice, but it could set the tone for how brands communicate green claims around the world. 

WFA recently released a first-of-its-kind guidance on how brands can make sure environmental claims are credible and we will be advocating for workable rules as part of negotiations on the Green Claims Directive. To ensure this guidance is as practical as possible for marketers, WFA has also developed an online training programme for marketers to help them steer clear of trouble and instead use environmental claims with confidence in order to drive business growth (for more details on this training, contact Michelle Mcevoy).

WHO takes on food and alcohol marketing

The World Health Organization’s scrutiny of food and alcohol marketing is nothing new. This year, a WHO report detailed how marketing campaigns “glamourize and normalize the use of harmful products, including harmful ones often targeting children and socioeconomically disadvantaged groups”.

Critically, the report coincides with preparations for next year’s UN high-level meeting on the prevention and control of Non-Communicable Diseases (NCDs), where Member States will collectively formulate key asks for both governments and the private sector.

While the UN declaration may be non-binding, it will influence the agendas of health ministries in a post-Covid era. The key question is whether this meeting will see continued support for private sector self-regulation when it comes to food and alcohol marketing or whether there will be a call for more formal interventions by governments.

The WFA’s Responsible Marketing Pact (RMP) and the Responsible Food Marketing Policy groups will help brands keep track of any changes and how the WHO’s demands trickle down to local level.

The evolving global policy landscape highlights the need for marketers to stay informed. Only by being agile will brands stay ahead of the game and successfully navigate challenges related to data protection, privacy, the use of AI, influencer marketing, environmental claims as well as food and alcohol marketing.