Using UGC video in your marketing without the right permissions is a legal risk that can be expensive and reputationally damaging. Here is everything your brand needs to know before using UGC content in paid advertising.
You have found a piece of customer content that is perfect for your next campaign. A real customer, talking genuinely about your product, filmed in a way that looks exactly like the kind of UGC that performs well in paid ads. You want to use it. Your instinct says yes.
Before you do, stop. Because using UGC content in paid advertising without the right permissions in place is not just a courtesy issue. It is a legal issue, and getting it wrong can result in significant costs, reputational damage, and in some cases, legal action from the creator of the content.
This guide covers the essential legal considerations every brand needs to understand before using UGC video in any marketing context.
Who owns UGC content?
The answer to that question is: the person who created it. Under UK copyright law, and the law in most jurisdictions, the creator of a piece of content owns the copyright to that content from the moment of creation. This applies to UGC video just as it applies to professional photography or commissioned writing.
This means that even if a customer films themselves using your product, tags your brand, and posts the video publicly on their own social media, you do not automatically have the right to use that content in your own marketing. The fact that it features your product or mentions your brand does not transfer any rights to you. You need explicit permission from the creator, ideally in writing, before you use their content in any paid context.
What permissions do you need to use UGC in paid advertising?
To use UGC content legally in paid advertising, you need a rights agreement that covers at minimum: the right to use the content in paid advertising (not just organic posting), the duration for which you can use it, the platforms on which you can use it, and confirmation that the creator grants you these rights without further payment.
When working with UGC creators through platforms like Influee or Billo, these rights are typically included in the platform's standard creator agreement. Before assuming they are, read the specific terms. Some platforms grant you broad rights automatically. Others grant limited rights by default and require you to negotiate extended usage separately.
When collecting organic UGC from customers who posted content without being briefed, you need to obtain explicit consent before using it in paid advertising. A direct message or email asking permission and outlining clearly what you want to use the content for is the minimum requirement. An actual written agreement is strongly preferable.
Disclosure requirements: when UGC becomes an ad
In the UK, the Advertising Standards Authority (ASA) and the Competition and Markets Authority (CMA) both require that paid advertising is clearly identifiable as advertising. This applies to UGC content used in paid ads just as it applies to any other form of sponsored content.
If you are running a customer testimonial as a paid social ad, the ad must be labelled as such. On Meta and TikTok, this is handled automatically through the platforms' paid content labelling systems, ads are automatically marked as 'Sponsored'. However, if a creator is posting the content to their own channel as part of a paid arrangement, they are additionally required by the ASA to disclose the commercial relationship, typically through labels like '#ad' or '#sponsored' clearly visible in the post.
Failing to disclose paid content arrangements is a compliance issue that can result in warnings, required amendments, and reputational damage. The rules are increasingly enforced as regulators across the UK and EU have made influencer and UGC marketing transparency a priority.
Music, third-party content, and other rights considerations
One of the most common legal issues with UGC content is music. When a creator films UGC content using a trending audio track from TikTok or Instagram, that music is licensed for organic content on those platforms, it is not licensed for use in paid advertising. If you take a creator's UGC video and run it as a paid ad with the original music intact, you are almost certainly infringing on the music publisher's rights.
The solution is to either use music that is specifically licensed for commercial use (there are platforms like Epidemic Sound and Artlist that provide this), or to ask creators to provide the raw video without music so you can add commercially licensed music yourself.
Also be aware of any third-party products, logos, or locations that might appear in UGC content. If a creator films themselves using your product in a way that prominently features a competitor's logo or a location that has its own image rights, you may need to address this before using the content in paid advertising.
How to build a legally clean UGC programme from the start
The simplest way to avoid legal issues with UGC is to build rights management into your process from the very beginning, rather than trying to resolve issues retrospectively.
When briefing UGC creators through platforms like Influee or Billo, review the platform's rights terms carefully and ensure you understand exactly what usage rights you are acquiring. For campaigns that require extended usage or exclusivity, add these requirements to the brief itself so there are no surprises after delivery.
For organic UGC collected from customers, create a simple permission request template that you can use consistently. When you request permission, be specific about how you intend to use the content, the platform, the duration, and whether it will be used in paid advertising. Vague permission requests lead to disputes later.
Keep records of every permission granted. A screenshot of a direct message, a copy of an email exchange, or a signed digital agreement all count as evidence of permission if a dispute arises later.