"Each of the UK’s governments and legislatures should change the law so that digital material must have an imprint saying who is behind the campaign and who created it," the commission's report on digital campaigning read.
The electoral watchdog also urged social media companies to enhance their policies on advertising and campaign material for UK elections and referendums.
"UK election and referendum adverts on social media platforms should be labelled to make the source clear. Their online databases of political adverts should follow the UK’s rules for elections and referendums," the report noted.
The UK parliament's Digital, Culture, Media and Sport Committee has been looking into the scandal around Cambridge Analytica and the company's potential links to Brexit referendum. Also, it was revealed in March that the firm harvested personal information of some 50 million Facebook users without their permission to target them with political advertising.