Check promotional merchandise rules and ethics before you order

What to take away

Promotional merchandise sits inside the same consumer, advertising and data rules as any other marketing channel, so the supplier and the client both carry duties.
Consumer enforcement guidance from the CMA applies to how you describe, price and deliver branded goods sold or given to consumers.
Personal data used to target a merchandise drop is covered by the Data Protection Act 2018 and the UK GDPR, so consent and retention need a paper trail.
Claims printed on products are advertising claims, and the CAP Code requires you to hold evidence before publishing them.
Printing, engraving and finishing can involve hazardous substances, so COSHH duties apply at the supplier's site.

If you are ordering branded merchandise for a client, the decision you face is not simply which product looks best. It is whether the item, the claim printed on it and the data behind the campaign will survive scrutiny from a regulator, a trading standards officer or a customer complaint.

This guide sets out the main rules and ethical considerations for promotional merchandise in England. Some rules differ in Scotland, Wales and Northern Ireland, so check the devolved position if you operate across the UK.

Start with the contract and the brief

The first compliance step happens before any artwork is approved. A written contract should identify who is responsible for what, including product safety, delivery dates and intellectual property.

What the contract must cover

Who is responsible for product safety
Delivery dates the factory can meet
Ownership of artwork and reuse rights
Ethical sourcing commitments in the same document

A common failure is a brief that promises a delivery date the factory cannot meet. If a client uses that date in their own advertising, the date becomes a claim. Our guide to promotional merchandise commercial contracts explains the clauses that protect both sides when a campaign slips.

The contract should also state who owns the artwork and whether the supplier can reuse it. Ethical sourcing commitments, such as avoiding forced labour in the supply chain, belong in the same document rather than in a separate policy nobody reads.

Consumer law applies to freebies and sold goods

Giving an item away does not remove it from consumer protection law. The Consumer Protection from Unfair Trading Regulations 2008 and the Consumer Rights Act 2015 still apply to how goods are described and supplied.

Gifted vs sold promotional items

Gifted item

Consumer law applies: Yes
Buyer remedies: No
Liability: Supplier and brand

Sold item

Consumer law applies: Yes
Buyer remedies: Yes
Liability: Supplier and brand

The Competition and Markets Authority publishes consumer protection enforcement guidance for businesses selling branded products, and it is the starting point for understanding misleading actions and omissions. You can read the consumer protection guidance for businesses on GOV.UK.

If a promotional item is sold rather than gifted, the buyer has the same rights as any other customer. That includes remedies for faulty goods. The supplier and the brand owner may both be liable depending on the arrangement.

Data protection when you target a merchandise drop

Sending a branded gift to a named individual is direct marketing if it promotes a product or service. That means you need a lawful basis, and consent is the usual one for electronic marketing.

Data protection for merchandise drops

Establish a lawful basis, usually consent
Follow PECR rules for email campaigns
Tell people what you do with their data
Set and follow retention periods
Record consent in plain English

Email campaigns that invite people to claim merchandise fall under the Privacy and Electronic Communications Regulations. The Information Commissioner's Office sets out the rules on email marketing for promotional campaigns in its guidance on direct marketing using electronic mail.

Keeping a mailing list for future drops carries its own duties. The Data Protection Act 2018 sits alongside the UK GDPR and requires you to tell people what you do with their data. Retention periods should be set and followed.

Our promotional merchandise disclosure policy template shows how to record consent and explain data use in plain English, which is useful when a client asks what happens after the campaign ends.

Advertising claims on products and packaging

Anything printed on a product is an advertising claim. If a mug says "eco-friendly" or a bag says "made from 100% recycled materials", that claim must be substantiated before it goes to print.

Substantiating product claims

Substantiate every printed claim before print
Hold evidence for recycled content
Hold evidence for carbon offsetting
Define vague terms such as sustainable
Back comparative claims with fair evidence

The Advertising Standards Authority administers the CAP Code, which covers claims, endorsements and testimonials in advertising. Its guidance on claims, endorsements and testimonials is relevant to promotional product claims, including environmental wording.

Comparative claims are a particular risk. Saying a product is "greener than" a rival requires evidence and a fair comparison. Vague terms such as "sustainable" are likely to be treated as misleading unless they are defined on the item or the packaging.

Our promotional merchandise advertising rules article walks through the evidence you should hold for common claims, including recycled content and carbon offsetting.

Health and safety in production

Promotional merchandise is often printed, dyed, engraved or coated. Those processes can involve hazardous substances, from solvent-based inks to cleaning fluids.

The Health and Safety Executive enforces the Control of Substances Hazardous to Health Regulations, known as COSHH. Suppliers should assess exposure risk and put controls in place. The HSE's COSHH guidance explains the assessment process.

Buyers should ask for evidence that a supplier has a current COSHH assessment for the processes used on their order. This is an ethical question as much as a legal one, because workers in the supply chain bear the risk.

Step-by-step compliance check

Use this sequence before signing off a merchandise order.

Confirm the legal entity you are contracting with and get the contract in writing, including delivery dates and ownership of artwork.
Check every claim that will appear on the product, packaging or accompanying leaflet, and hold evidence for each one.
Confirm the lawful basis for any personal data used to select recipients, and record it in your privacy documentation.
Ask the supplier for product safety documentation, including test reports where relevant, and keep them on file.
Request a COSHH assessment for the printing or finishing processes used on your items.
Check the delivery and returns process against consumer law if the item is sold rather than gifted.
Store the signed contract, evidence pack and data records together so they can be produced on request.

Ethical sourcing and gifts

Compliance is a floor, not a ceiling. Ethical sourcing commitments usually go further than the law requires, covering factory audits, fair wages and environmental impact.

Many public sector organisations in England publish their own gift and hospitality thresholds. If you supply to a council, NHS trust or government department, check their policy before offering anything of value to an employee.

The Bribery Act 2010 also matters. A promotional gift is unlikely to be a bribe on its own, but a high-value item given to influence a decision could be. Keep a record of what was given and to whom.

Our promotional merchandise UK regulations in England guide sets out the England position on product safety, labelling and sector-specific rules, which is the right starting point if you are new to the category.

Sector-specific considerations

Some sectors apply extra rules. Financial promotions must be approved by an authorised person, so a branded item carrying a financial claim needs sign-off before production.

Alcohol and gambling merchandise is subject to advertising restrictions. Items that appeal to children, such as toys or school-related gifts, attract additional safety and marketing scrutiny.

Pharmaceutical promotional items are governed by the Association of the British Pharmaceutical Industry code, which sets limits on gifts to healthcare professionals. Check the relevant code before ordering.

Working with suppliers and factories

Due diligence should be proportionate to the order value and the risk profile of the product. A low-value pen needs less scrutiny than an electrical item or a children's toy.

Ask for the factory name and location, not just the trading name of the agent. Sub-contracting is common, and the entity that prints your logo may not be the entity you contracted with.

Where a supplier cannot provide test reports or COSHH documentation, treat that as a warning sign. Our promotional merchandise audience research guide for England explains how to test whether a product and its message will land with the intended audience before you commit to a large run.

Record keeping and review

Keep records for as long as the risk lasts. Product safety files should be retained for the life of the product plus a reasonable period, and data records should follow your retention schedule.

Review your supplier list at least annually. Regulations change, and a supplier that was compliant two years ago may not be now.

If a complaint or a regulator query arrives, the organisation that can produce a complete evidence pack quickly is in a much stronger position.

Common questions

Do promotional gifts count as advertising under the CAP Code?

Yes, if they promote a product, service or brand. The CAP Code applies to non-broadcast advertising, which includes printed claims on merchandise and packaging. Hold evidence for any claim before it is printed.

Can I send branded merchandise to someone who has not opted in to marketing?

If the item promotes your business and the recipient is an individual, treat it as direct marketing. The ICO's electronic mail guidance explains when consent is needed and when a soft opt-in might apply. Business-to-business rules are narrower but still apply.

Who is responsible if a promotional product is unsafe?

The supplier and the brand owner can both carry responsibility depending on the arrangement and the product. Product safety law places duties on producers and distributors, so keep test reports and traceability records for every order.

Does COSHH apply if I only buy the finished product?

The main duties fall on the supplier doing the printing, coating or finishing. As a buyer, you should still ask for evidence that a COSHH assessment exists, because your order drives the process and your reputation is attached to it.

This article is general guidance only and does not replace legal advice. Individual cases need a qualified adviser, particularly where consumer law, data protection or health and safety enforcement is involved.