Transcript international standards & best practice (easa)

ADVERTISING STANDARDS
AUTHORITY OF SA (ASA)
Portfolio Committee on
Communications
14 June 2011
ESTABLISHMENT & FORM
 ASA established in 1968
 Independent Body, funded by advertising
industry
– Marketers/Advertisers/Media Owners
 Agree to set of rules and procedures to
enforce such rules – Code of Advertising
Practice
 Works closely with government, statutory
bodies, consumer organisations
 EC Act
ASA MANDATE
To protect consumers and ensure
professionalism among
advertisers
(Code of Advertising Practice, Preface xix, Issue 9)
ASA MANDATE (cont.)
Functions derived from mandate:
 To adopt and enforce a Code of Advertising
Practice * to protect consumers and ensure
professionalism among advertisers
 For same reason to adopt Code of
Sponsorship*
 To determine whether advertising and / or
sponsorship contravenes or offend
standards
 To consult with and advise appropriate
bodies, i.e. government, statutory etc.

(*As per Articles of Association)
ASA MANDATE (cont.)
Philosophy underpinning ASA operations
 ASA operates in a constitutional
democracy
 ASA has to adhere to and apply
SA Constitution
Principles of natural justice (PAJA, etc)
 This requires of ASA to be
Compliant to procedures and
processes in implementing mandate
with attendant cost implications
… say what?
“The founders of the Advertising Standards
Authority of South Africa … all industry players
who commission, prepare and carry advertising
were involved from the outset. Long before
South Africa embraced a culture of human rights,
the ASA recognised everyone’s right to be heard
and the right to accurate commercial
communication that did not exploit the gullibility
or susceptibility of any section of the
population”.
SO, WHAT DOES THE ASA DO?
• Play adjudicatory role
• Investigate complaints about
content of advertising
• Decide whether advertising
should be allowed to continue or
not
WHAT IS SELF-REGULATION?
“… a system by which the advertising
industry actively polices itself. The three
parts of the industry – the advertisers …
the advertising agencies … and the media
– work together to agree standards and
set up a system to ensure that
advertisements which fail to meet those
standards are quickly corrected or
removed …”
Advertising self-regulation in
Europe – the blue book
ADVERTISING A SERVICE TO
PUBLIC
• Self-regulation is the recognition that
industry create advertising that complies
to set of rules (Code)
• Should be:
• Legal
• Decent
• Honest
• Truthful, and
• Its contents should not violate any of
the laws of the country
WHY REGULATE ADVERTISING?
• Advertising essential part of market economies
• Must enjoy high level of consumer trust and
confidence
• If consumers are misled – they will not buy again
• If offended – they will not buy in 1st place
• Bad advertising undermines consumer confidence
and all advertising will suffer
• Thus in industry’s interest to ensure advertising is
regulated
• Can be done 2 ways: detailed legislation or selfregulation
WHAT ARE BENEFITS OF
SELF-REGULATION?
• FOR CONSUMERS
• Quick, uncomplicated, easilyaccessible and cost-free
• Flexible to change to societal
views
• Immediate sanction/withdraw
WHAT ARE BENEFITS OF
SELF-REGULATION?
• FOR ADVERTISING INDUSTRY
• Pro-actively ensure
advertising is honest, decent,
truthful and legal
• Build up strong trust
relationship with consumer
• Promoting further
consumption of products
WHO APPLIES THE RULES?
Final Appeal
Committee
Advertising
Standards
Committee
Advertising
Industry
Tribunal
Directorate
CODE OF ADVERTISING PRACTICE
 Based on ICC Code of Advertising and
Marketing Practice (1937)
 Adapted to South African context
 In line with SA Constitution
 Reviewed annually
Code of Advertising Practice (cont)
• Two main purposes:
• Protect the consumer
• Ensure professionalism among
advertisers
• Lays down criteria for professional
conduct
• Form basis of arbitration
• Compliment (not replace) legislation
NOT … purpose of ASA
 Contractual disputes
 Quality of products/services
Re-active
body, does
not monitor
advertising
 Legitimacy of business practices
 Political advertising
 Controversial subjects/Advocacy
advertising
ACTION
 Sanctions:
 Once-off pre-clearance (at advertiser’s
cost)
 Set term pre-clearance of ALL
advertising (at advertiser’s cost)
 Summarised ruling / Adverse publicity
 Withholding advertising space
Action…
 Enforcement:
 Through media members (including print
media and broadcast media)
 Members will not flight advertising at
issue (ECT Act)
 Ad Alert
 Additional sanctions possible
AD ALERT
!
 Television
 Newspapers
 Radio
 Magazines
 Outdoor
 Cinema
ASA SINCE 2002
SINCE 2002:
SERVICE TO CONSUMER
 Service to the consumer
– September 2002, ASA hosted event at which Min Alec
Erwin, Minister of Trade & Industry, conveyed to
representatives from the Marketing & Communications
Industry what government expects from an industry
advertising to consumers.
– “The ASA cannot serve the marketing industry unless it
demonstrably serves the best interest of the consumer”
 This has driven ASA behaviour and
shaped ASA structures
 ASA embarked on forceful consumer
campaigns
SINCE 2002:
AWARENESS CAMPAIGN
 Awareness campaign
– consumer 2003/4
– Television
commercial
– Radio advert
– Corporate video
– Corporate
brochure
– Consumer code
– “Made to measure”
campaign
– ASA Newsline
– Website
– Roadshow with
consumer offices
– Annual Report
2003 & 2004
– Cost: R500k
Portfolio - Awareness
Campaign
CONSUMER RULES
SINCE 2002:
TRADE AND INDUSTRY ASSESSMENT
– Official acknowledgement of ASA’s role and
relevance of self-regulation
– DTI endorsed the work of re-invention at the
ASA and emphasised its transparency,
consumer access and awareness
– ASA good marks for:
•
•
•
•
•
Effectiveness
Support to both individuals and business
Low cost access to the system
Appropriate redress
Impartiality in the ASA complaint investigations
 “effective self-regulation is
dependent on the continued
quality and independence of
the ASA”

* Assessment by the Consumer and Corporate Regulation
Division of the DTI, Sept 2002
SINCE 2002:
CONSUMER AWARD
 Recognition of the ASA’s service to
consumers (early 2003)
 DTI award for Consumer Champions in
industry association category
 Award recognises ASA’s ability to:
– Ensuring strict industry compliance with a
consumer-friendly Code;
– Efforts to combat harmful and unfair practices;
– High level of consumer interaction and
education
 ASA also welcomes MFSA & OHMSA as members
EFFECT OF AWARENESS
 Increased awareness and
consequently, number of complaints
– 2002: 1508 complaints received
(46.3% more than 2001)
– 2003: 1,660 complaints received
– 2004: 1,951
– 2010: 2,065
CURRENT : ASA & the CPA
 Act, legislation pertaining to advertising
and marketing sector, (S.82)
 ASA obliged to apply for accreditation
 Rights enshrined in Act, closely
interlinked with principles of ASA
 Business required to transform way
they interact with consumers
– Dealings must be fair, reasonable and
honest
• “Advertising should be legal,
decent, honest, truthful and
its contents should not
violate any of the laws of the
country”
• *Code of Advertising Practice
CURRENT: CHALLENGES
 Compliance with CPA – role of ASA?
 Not enough resources to handle
increased consumer awareness
 SA economic recession and industry
cannot increase funding to ASA to
continue educating consumers
about service
END