Fuel consumption and CO2 emissions will now have to be prominently displayed.
Previously, the government exempted ‘primarily graphical’ adverts from an EU directive on car advertising which says that fuel economy and CO2 emissions information must be prominently provided in all promotional literature.
The decision comes as a result to the threat of legal proceedings by the Alliance Against Urban 4x4s and Friends of the Earth.
Phil Michaels, head of legal at Friends of the Earth, said: “Until now the UK was getting away with flouting EU legislation on car advertising.
“We will be watching carefully to make sure the law is now properly enforced.”