The Advertising Ecosystem and Corresponding Legal Compliance in 2025
The Evolution of Advertising
Few sectors have experienced as much transformation as the advertising industry since the Internet became mainstream. The rise of data-driven frameworks has enabled marketers to target audiences with unparalleled precision. However, this data-centric approach has also raised concerns about privacy, transparency, and potential abuse. In response, lawmakers worldwide have introduced new regulations to address these issues.
Most recent laws focus on the use of consumer data in marketing, while older regulations are being applied to modern practices like native advertising and influencer marketing. Below is an overview of key legal considerations for advertisers in 2025.
Laws Regulating Marketing Data
The collection and use of consumer data remain at the heart of modern advertising strategies. Companies like Google and Meta have built business models around vast troves of user data, enabling highly targeted campaigns. However, this reliance on data has led to privacy concerns and increased regulatory scrutiny. The starting point is a privacy policy, but privacy compliance is increasingly fragmented and complex and needs to account for a highly dynamic regulatory landscape that includes laws on the local, state, federal, and international levels, including the following:
- California Privacy Rights Act (CPRA): The CPRA continues to expand consumer rights by allowing individuals to limit the use of sensitive personal information (SPI), opt out of targeted advertising, and request deletion and access to data, among other privacy rights.
- General Data Protection Regulation (GDPR): In Europe, GDPR remains a cornerstone of privacy regulation. Efforts are underway to simplify compliance for small businesses while maintaining robust protections.
- Other State-Level Privacy Laws: In the U.S., states like Virginia, Colorado, and Connecticut have enacted their own privacy laws. Businesses must stay vigilant as more states introduce similar legislation.
Retargeting & HIPAA Compliance
Retargeting is one of the most effective tools in a marketer’s arsenal, but it can pose legal risks for healthcare providers subject to HIPAA and other health-focused privacy laws. Retargeting ads that imply or reveal health conditions may inadvertently disclose Protected Health Information (PHI), violating HIPAA’s Privacy Rule.
Best Practices for Compliance:
- Avoid including any patient-specific details or health-related information in retargeting ads.
- Execute Business Associate Agreements (BAAs) with all third parties handling PHI.
- Ensure compliance whether marketing activities are conducted in-house or outsourced.
Political & Issue-Based Ads
The shift toward digital platforms has transformed political and issue-based advertising. While these platforms offer advanced targeting capabilities, they also raise concerns about transparency and potential manipulation.
Regulatory Updates:
- Platforms like Google and Meta now require advertisers to disclose certain information for political ads.
- Legislators are considering new rules to address anonymity and misinformation in issue-based advertising.
Influencer Marketing: A Growing Focus
Influencer marketing continues to thrive, with billions spent annually on partnerships with social media personalities. However, regulatory bodies like the FTC are closely monitoring this space to ensure transparency.
Key Compliance Tips:
- Influencers must clearly disclose sponsored content using terms like “#ad” or “sponsored.”
- Brands should provide influencers with guidelines to ensure compliance with FTC regulations.
Contests, Sweepstakes, & Other Promotions
Promotions such as contests and sweepstakes remain popular tools for driving engagement but come with legal complexities. Missteps can lead to allegations of false advertising or violations of state laws governing promotions.
Compliance Guidelines:
- Clearly outline rules and eligibility requirements.
- Avoid misleading claims about prizes or odds of winning.
- Ensure compliance with state-specific regulations.
Recurring Charges & Subscriptions
The subscription economy is booming, but recurring billing practices face increased scrutiny due to concerns about deceptive practices.
Recent Developments:
- The FTC updated its Negative Option Rule in early 2025, requiring businesses to provide clear disclosures about automatic renewals and offer simple cancellation mechanisms.
- California’s amended automatic renewal law now mandates annual reminders for subscription terms and prohibits misleading cancellation processes.
Advertising Substantiation Requirements
Advertisers must substantiate all claims made in their marketing materials. This is particularly important for health-related products and environmental claims.
Key Areas of Focus:
- Green Claims: Under the FTC’s updated Green Guides, environmental claims must be backed by reliable evidence.
- Health Products: Claims about health benefits for food and supplements, among other products, must meet stringent substantiation standards set by the FTC.
Lead Generation & FCC Rules
Starting in 2025, telemarketers were to obtain explicit consent from consumers for each marketing partner under new FCC rules, though the “one-to-one consent” rule was being argued in the courts. The change aims to close loopholes that previously allowed broad consents through lead generators, including in the TCPA context.
Emerging Trends in Advertising Enforcement
Regulatory agencies are adapting their enforcement priorities to address new challenges in the digital age:
- State Attorney General Actions: State AGs are increasingly focused on privacy violations, greenwashing claims, and financial fraud.
- Antitrust Lawsuits: Ongoing cases against major tech companies could reshape digital advertising markets by limiting monopolistic practices.
- Subscription Economy Oversight: Regulators are targeting companies that use deceptive tactics in subscription billing models.
Takeaways
In 2025, staying compliant requires businesses to proactively address legal risks across all facets of advertising and marketing. With regulators focusing on transparency, privacy, and consumer protection, it’s more important than ever to consult legal counsel before launching campaigns. By staying informed and adhering to evolving regulations, businesses can leverage innovative strategies responsibly while minimizing legal exposure.
