Transcript 2011 - The Leveson Inquiry

The Advertising
Standards Authority
Leveson Inquiry:
regulatory models
briefing
Guy Parker
Chief Executive
Lynsay Taffe
Director of Communications
5 October 2011
Topics to be covered
• Overview of ASA and self-/co-regulatory system
• Advertising Codes
• New online remit
• Sanctions
History of the ASA
The flexibility of the system to respond to changes in society and technology means self-/co-regulation
continues to be the best way of keeping ads legal, decent, honest and truthful.
• 1961: Advertising Association establishes self-regulatory system for non-broadcast advertising
• 1962: ASA established as the independent adjudicator to supervise the working of the new selfregulatory system in the public interest
• Early 1970s: sales promotion rules introduced
• 1975: Asbof levy introduced
• 1990: use of data for direct marketing purposes rules introduced
• 1988: Control of Misleading Advertisements Regulations implemented
• 2004: ASA/CAP system assumes responsibility for regulation of TV and radio ads
• 2008: CPRs and BPRs implemented
• 2011: The ASA’s digital remit is extended to cover websites
The ASA system
• ‘One-stop shop’ for ad complaints across all media
• Both self-and co-regulatory
• Advertisers, agencies and media commit to ‘legal, decent, honest
and truthful’ advertising
• Mandatory Codes, written by two Committees of Advertising
Practice (CAP and BCAP) maintain standards for consumer
protection and fair competition
• Independent ASA adjudicates on complaints and monitors
compliance
• Arms-length funding by two Boards of Finance (Asbof and Basbof)
• Transparent, proportionate, targeted, evidence-based
The ASA and CAP
ASA Broadcast
Regulates TV and
radio ads under
contract from Ofcom
Independently
administers and
enforces rules laid out
in the Advertising
Codes
Two separate industry
bodies that write and help
enforce the Advertising
Codes
ASA Non-broadcast
Nearly 50 years of
operation; independent
from Ofcom
Writes and helps enforce
the UK Code of
Broadcast
Advertising
Writes and helps enforce
the UK Code of NonBroadcast Advertising,
Sales Promotion and
Direct Marketing
How we’re funded
Voluntary levy collected by
Asbof/Basbof
Independent of ASA
• 0.1% levy on ad spend
• 0.2% on mailsort contracts
The benefits of self-regulation
• Trust in advertising
– Good for business and consumers
• Corporate social responsibility
– Industry has a stake in its own rules
• Fast
– Quicker than the courts
– Responsive to technological and social change
Mandatory
Advertising
Codes
Transparent
communication
Effective
sanctions
Training and
Advice
360°
regulation
Independent
Council
Monitoring
and
compliance
Complaints
and
investigation
ASA
Council
Members
Advertising Codes
• All ads must be legal, decent, honest and truthful
• Prepared with a sense of responsibility
• Must not mislead, harm or offend
• Advertisers / broadcasters must hold
evidence to support all claims
• Special rules, e.g.:
– Alcohol
– Children
– Environmental claims
– Health and beauty
Recent changes
• One Broadcast Code from the four previous TV and Radio Codes
• TV and radio: a new general social responsibility rule
• TV: environmental claims section
• All Codes: introduction of specific and general provisions from the
Nutrition and Health Claims on Foods Regulation
• TV: explicit scheduling restriction on ads for 15+ age-rated video
games
• Data collection: rules to prevent marketers from collecting data from
U12s without obtaining the consent of their parent or guardian
New digital remit for the ASA
Came into force on 1 March 2011
Ensures the same high standards as in other
media and covers:
•
Advertisers’ own marketing communications
on their own websites
•
Marketing communications in other non-paidfor space under their control, such as social
networking sites like Facebook and Twitter.
Defining a ‘marketing communication’
Advertisements and other marketing communications by or from
companies, organisations or sole traders on their own websites, or in
other non-paid-for space online under their control, that are directly
connected with the supply or transfer of goods, services,
opportunities and gifts, or which consist of direct solicitations of
donations as part of their own fund-raising activities.
i.e.
The primary intent is to sell something or raise funds, though not
necessarily immediately via a transactional facility.
Complaint, case and enquiry levels
• First six months: 15,622 complaints (up 7%) about 11,823 cases (up
81%). Untypically few multi-complaint cases
• On course for around 7,500 digital remit cases in 2011 (2,500
predicted)
• Copy Advice enquiry levels substantially up since second half of 2010
and significant demand for paid-for Website Audits
Sanctions
• Adverse publicity
• Media refusal via Ad Alerts
• Poster and press ad pre-vetting
• Withdrawal of trading privileges –
including bulk mailing discounts
• Online sanctions:
• enhanced name and shame
• search engine suspension of paid
search campaigns
• ASA paid search ad campaign
• No fines, but referral to OFT/ Ofcom
Thanks for listening