Advertising and product claims

Advertising claim substantiation: what the rules require

Q: Can the UK regulator fine advertisers?

The ASA uses sanctions such as Ad Alerts and referrals. The CMA can fine a company up to 10% of global turnover for breaking consumer protection law.

Last checked 6 November 2026 · 8 sources

Short answer

Most advertising rules require an advertiser to hold evidence for an objective claim before the advert runs. The US FTC expects a reasonable basis before a claim is disseminated ¹. The UK CAP Code requires documentary evidence for claims consumers are likely to regard as objective ². Canada's Code requires competent and reliable evidence ³, and India's ASCI Code says factual claims should be capable of substantiation ⁴. In Australia, claims about the future need reasonable grounds at the time they are made ⁵.

United States: Reasonable basis before dissemination, FTC policy of 23 November 1984 ¹
United Kingdom: CAP Code rule 3.7, documentary evidence for objective claims ²
Canada: Code clause 1(e), competent and reliable evidence ³
India: ASCI Code Chapter I, claims capable of substantiation ⁴
Australia: Future claims need reasonable grounds at the time they are made ⁵
UK fines for breaches of consumer law: Up to 10% of global turnover, set by the CMA ⁶

The common idea: evidence first, advert second

Advertising rules in many countries share one principle. An advertiser must have proof before it makes a factual claim, not after a complaint arrives. The US Federal Trade Commission reaffirmed in 1984 that advertisers and agencies must have a reasonable basis for claims before they are disseminated ¹.

The FTC said that failing to possess and rely on a reasonable basis for objective claims is an unfair and deceptive act or practice under Section 5 of the FTC Act ¹. The UK CAP Code says marketers must hold documentary evidence to prove claims that consumers are likely to regard as objective ².

Rules compared

Jurisdiction	Rule	Who applies it
United States	Reasonable basis for objective claims before they run ¹	Federal Trade Commission ¹
United Kingdom	Documentary evidence for objective claims, CAP Code rule 3.7 ²	Advertising Standards Authority, with sanctions and referrals ⁷
Canada	All claims supported by competent and reliable evidence, disclosed to Ad Standards on request ³	Standards Council, or le Conseil des normes in Quebec ³
India	Claims about objectively ascertainable fact should be capable of substantiation ⁴	Advertising Standards Council of India, set up in 1985 ⁴
Australia	Reasonable grounds for claims about the future, at the time of the claim ⁵	Australian Competition and Consumer Commission ⁵
European Union	Unfair Commercial Practices Directive 2005/29/EC, amended by Directive (EU) 2024/825 ⁸	Member state authorities, under national laws applying from 27 September 2026 for the amendments ⁸

How much evidence is enough

The FTC does not set one level of proof. Where an advert states a level of support, it expects at least the advertised level of substantiation. For reasonable interpretations of an advert that the advertiser may not have intended, it expects prior substantiation ¹.

Where an advert does not state a level of proof, the FTC weighs factors. They are the type of claim, the product, the consequences of a false claim, the benefits of a truthful claim, the cost of developing substantiation and the amount of substantiation experts in the field believe is reasonable ¹.

What the regulator looks at

Regulators judge the message as consumers receive it. Canada's Code says the focus is on the message as received or perceived ³. The ACCC tells businesses to check that the overall general impression is accurate and says it makes no difference whether a business intends to mislead ⁵.

Omissions count. The CAP Code bars marketing that omits material information ², and Canada's Code bars omissions that make an advert misleading ³. The CAP Code bars exaggerating the capability or performance of a product ².

Self-regulation and law

Some of these rules are industry codes and some are law. The ASA and Ad Standards Canada run industry codes ^2,3. Where an advertiser does not comply, the ASA can refer it to statutory bodies such as Trading Standards ⁷.

In the UK the Competition and Markets Authority gained new direct powers in April 2025. It can now decide whether consumer protection law has been infringed and fine a company up to 10% of its global turnover ⁶.

Common questions

Do I need evidence before an advert runs?

Under the FTC policy an advertiser must have a reasonable basis before the claim is disseminated ¹. The CAP Code requires marketers to hold documentary evidence for objective claims ².

What is a reasonable basis under FTC rules?

It depends on factors including the type of claim, the product, the consequences of a false claim and what experts in the field consider reasonable ¹.

Does intent matter in a misleading advertising case in Australia?

The ACCC says it makes no difference whether a business intends to mislead or not ⁵.

Can the UK regulator fine advertisers?

The ASA uses sanctions such as Ad Alerts and referrals ⁷. The CMA can fine a company up to 10% of global turnover for breaking consumer protection law ⁶.

Rules and charges change. Check the official source linked on this page before you pay or travel. Spotted an error? Email hello@theclaimregistry.com.

Sources

How UK ASA rulings work
How the UK Advertising Standards Authority rules on adverts, what upheld and not upheld mean, when rulings are published and what sanctions follow.
Green and environmental claims rules compared
How the EU, UK CMA Green Claims Code, US FTC Green Guides and Australia's ACCC treat eco-friendly, carbon neutral and other environmental claims.
The EU register of nutrition and health claims
How the EU authorises health claims on food, what the public register lists, EFSA's role, and the rules in Regulation 1924/2006 and Regulation 432/2012.