Influencer Marketing

Influencer Marketing in Regulated Spaces: How Brands & Influencers Can Stay Compliant and Credible in 2025

By ARM Administrator
May 23, 2025

In 2024, a popular wellness influencer promoted a ‘miracle’ supplement to their millions of followers. The product looked polished, promised fast results, and featured glowing testimonials. But just days later, regulators stepped in. The claims violated multiple health advertising laws. The brand was fined, and the influencer came under formal investigation for misleading the public. Such incidents are much more common than we realise. They highlight how far influencer marketing has come—from a freewheeling creative space to a high-stakes landscape under intense scrutiny, especially in sectors like wellness, finance, and healthcare. As the stakes have risen, so has the scale of the industry: Influencer Marketing for brands is now a $24 billion global force, projected to reach $32.55 billion by 2025. With this growth, its reach has expanded into regulated industries where the consequences of misinformation extend far beyond PR issues—they can influence health decisions, financial choices, or legal outcomes. In this new environment, compliance isn’t a constraint—it’s a competitive edge. For brands and influencers alike, building trust now depends on accountability, transparency, and a deep understanding of the rules.

Regulated Sectors: Under the Microscope

Recent developments and rising consumer expectations have made regulatory reforms inescapable. A single misleading claim in these fields can quickly escalate into regulatory or legal action. Critical sectors like these demand that brand influencer content adhere to strict standards of accuracy, transparency, and consumer protection. Global regulators are increasingly drawing hard lines around influencer marketing in regulated industries. In the UK, the Financial Conduct Authority (FCA) has cracked down on influencers promoting unauthorised crypto schemes, while the Advertising Standards Authority (ASA) banned unsupported weight-loss claims. The European Union’s Green Claims Directive now requires environmental messaging to be backed by credible evidence. In the U.S., the Federal Trade Commission (FTC) has tightened disclosure rules around paid partnerships. These developments show that the regulatory grey areas around influencer marketing are quickly disappearing—scrutiny is sharper, and tolerance for non-compliance is significantly lower. India has kept pace with this global shift. The Securities and Exchange Board of India (SEBI) now bars financial influencers (“finfluencers”) from using live market data in educational content to prevent misinterpretation. The Advertising Standards Council of India (ASCI) has expanded its influencer guidelines to platforms like LinkedIn, requiring clear disclosures and responsible messaging. Ministries like AYUSH and the Central Drugs Standard Control Organisation (CDSCO) are cracking down on false medical claims, and SEBI has intensified action against unregistered brand deals. Together, these measures reflect a decisive move toward accountability at every level of the influencer marketing economy. One thing remains clear: influencer marketing in regulated industries is no longer just a branding exercise—it’s a compliance challenge where trust, ethics, and accountability define long-term credibility. But how do we navigate these?

Best Practices for Brands and Influencers in 2025

To maintain credibility and avoid regulatory pitfalls, here are five best practices every brand and influencer marketing agency must follow in 2025:

1. Ensure Clear and Prominent Disclosure

Influencers must disclose partnerships clearly at the start of posts using tags like #ad or “paid partnership.” This transparency is crucial in regulated sectors to avoid legal repercussions and build audience trust. A great instance of this is the UK-based fitness brand Gymshark, which provides influencers with clear disclosure guidelines, ensuring compliance while maintaining authentic engagement.

2. Provide Comprehensive Training on Regulations

Brands should educate influencers on advertising laws and sector-specific guidelines. For instance, after stricter ASCI regulations in India on health claims, many wellness brands now require influencer training on permissible claims and disclosure norms, helping to prevent misleading promotions.

3. Use Written Compliance Agreements and Pre-Approval

Contracts must explicitly state compliance requirements and include content pre-approval processes. In the Healthcare sector, brands like Johnson & Johnson implement internal reviews to ensure influencer content meets legal standards before it goes live, reducing the risk of misinformation and penalties.

4. Tailor Content for Platform-Specific Rules

Different platforms have distinct disclosure policies. For example, YouTube requires verbal and description disclosures, while LinkedIn recently enhanced its transparency standards. Brands must ensure influencers understand and comply with these rules to avoid fines or content takedowns. In early 2024, Meta cracked down on misleading health ads across Instagram and Facebook, removing over 1,000 posts promoting unverified supplements and miracle cures. Many lacked required disclaimers, and affiliated brands faced ad suspensions and account restrictions. This reflects how platforms themselves are enforcing compliance to safeguard users. To stay ahead, brands should prioritise legal oversight and partner with influencers who understand these evolving advertising requirements. Doing so doesn’t just offer protection—it lays the foundation for lasting credibility.

5. Monitor Campaigns and Respond to Issues Quickly

Ongoing monitoring through tools or dedicated teams allows brands to detect compliance breaches or audience concerns early. This proactive approach helps mitigate reputational damage and regulatory risks if an influencer’s content is flagged or questioned.

Case in Point: L’Oréal’s Compliance-First Strategy Sets the Benchmark

Several leading brands are already setting new standards in ethical influencer collaborations -L'Oréal is one such example. The global beauty giant has built a robust influencer marketing programme grounded in transparency and compliance. In recent years, L'Oréal has implemented mandatory training modules for partner influencers, ensuring they understand legal disclosure requirements and ethical advertising standards, especially for products falling under cosmetic and dermatological regulations. They also mandate signed contracts detailing compliance obligations and enforce a two-step approval process for content, which includes both legal and brand reviews. And in 2024, the company partnered with over 3,000 micro- and macro-influencers worldwide, consistently using platform-appropriate disclosures like #sponsored or “paid partnership with L’Oréal” while avoiding unverified beauty claims. This rigorous approach helped drive results: the “Walk Your Worth” campaign generated $58.8 million in earned media value (EMV) and 871 million impressions, while L’Oréal Professionnel saw a 563% increase in EMV over six months, working with over 900 influencers. This approach has helped L'Oréal avoid public controversies while reinforcing consumer trust across markets—earning its spot among the best influencer agencies-led programmes globally.

Case in Point: What Non-Compliance Costs a Wellness Brand

In 2020, a U.S.-based wellness brand faced regulatory action for promoting a non-FDA-approved weight loss product via influencer endorsements that lacked proper disclosures and evidence. Influencers made exaggerated health claims—like curing illnesses or rapid weight loss—without scientific backing. The brand was fined nearly $1 million, while influencers received formal warnings, leading to mass content takedowns and a complete overhaul of the brand’s influencer marketing agency-driven programme. Cases like this underscore the reality: non-compliance comes at a far greater cost than doing things right from the start.

Playing by the Rules: The New Way Forward

Compliance is no longer a limitation—it’s a competitive edge, especially in influencer marketing in regulated industries where trust is hard-won. Today’s most credible brands are those that lead with transparency, accountability, and proactive legal oversight. But credibility isn’t built by brands alone—it’s a shared responsibility. Influencers must stay informed about what claims are permissible, ask critical questions, and partner only with brands that uphold ethical standards. In an era of increasing oversight, those who prioritise integrity in influencer marketing for brands will emerge as leaders, not just in the eyes of regulators but also in the cultural conversation.