The Culture Secretary, Ben Bradshaw, said the ban was lifted because it was affecting the competitiveness of British programmers. Programmers can now make shows that will contain paid-for product placements.
However, the ban will still extend to the placement of alcohol; food and drink high in fat, salt or sugar; gambling and tobacco. The BBC will continue to follow the rules against product placement on its shows.
Denmark now remains the only EU country to ban product placement.
The film industry and American TV shows such as American Idol and Sex and the City already use paid-for product placements.