How Is Advertising Controlled

Web – Controls – How is Advertising Controlled? How is Advertising Controlled? "The UK advertising industry is respected and emulated around the world, not only for its creativity, but also for the powerful system of self-imposed controls it has developed". Television and radio have been controlled through the Broadcasting Act since the start of commercial broadcasting in 1955. In 1961, to prevent similar statutory constraints being applied to advertising in other media, the industry developed the self-regulatory system and the first edition of the Advertising Code was published. The Sales Promotion Code was added in 1974 and the two Codes were brought together in 1995 into one comprehensive set of rules for advertisements and sales promotions. The basic principles of the Codes are that advertisements should be: 1. legal, decent, honest and truthful 2. prepared with a sense of responsibility to consumers and to society 3. in line with the principles of fair competition generally accepted in business. The ASA, which was established in 1962, is responsible for supervising the system and for applying the Codes to make sure that the public are not misled or offended by advertisements. The ASA is independent of both the Government and the advertising industry. Television advertisements are regulated by the Independent Television Commission and radio advertisements by the Radio Authority. Who writes the rules? The British Codes of Advertising and Sales Promotion are written by the advertising industry through the Committee of Advertising Practice (CAP). All the main trade and professional bodies representing advertisers, agencies, service suppliers and media owners are members of CAP. In addition to writing the Codes, they agree to enforce them. But even if an advertiser is not a member of one of the CAP trade bodies, they will be required to observe the Codes and the rulings of the ASA Council. Why is this system better than a legal one? Consumer protection laws in the UK are among the best and the strongest in the world. Companies have to make sure that their advertisements are legal but the industry imposes stricter rules on itself than the law requires. Providing they do not overstep the agreed boundaries, advertisers can be as creative as they like. Self-regulation works alongside the law but is more flexible than legislation and can adapt quickly to new forms of advertising and changes in public attitudes. How is the System Funded? The ASA's work is funded by a small levy on display advertising and direct mail expenditure. In order for the ASA to preserve its independence from the advertising industry, a separate body, the Advertising Standards Board of Finance, collects this income. The only cost to consumers is the price of a stamp, or the time spent on-line, to send a complaint. The ASA's budget for the year 2001 is just over £4 million. 1

Web – Controls – How is Advertising Controlled? How does the ASA Protect Consumers? "30 million press advertisements are published in the UK each year. ASA research reveals that the vast majority are legal, decent, honest and truthful." Some 30 million press advertisements are published in the UK each year. ASA research reveals that the vast majority of advertisements are legal, decent, honest and truthful: compliance with the Codes achieves levels of 97% for press advertisements, 98% for posters and 85% for direct marketing. The system of advertising control works in three main ways to protect consumers and to keep standards high: Research The ASA can take action to have an advertisement withdrawn or changed without having to wait for a complaint. Around 10,000 advertisements a week are spot checked by the ASA’s staff. These checks help the Authority to keep an eye on trends and to act quickly to have an advertisement stopped if it raises a problem under the Codes. Pre-publication advice Many advertisers, agencies and publishers use the free pre-publication advice service provided by CAP to check advertisements against the Codes. Having advertisements stopped by the ASA can be costly for companies, both financially and in terms of their reputation. Indeed, companies might still have to pay for poster or newspaper space they have booked, so many advertisers take care to avoid problems before publication. Resolving complaints The ASA also receives about 12,000 complaints each year. Most of these are from members of the public who have felt misled or offended by an advertisement but some are from consumer groups or competing companies. If an advertisement is found to break the Codes the ASA will ask the company to withdraw or change it. What Exactly does the ASA Regulate? All advertisements and promotions in non-broadcast media are covered by the British Codes of Advertising and Sales Promotion and are regulated by the ASA. These include:   

  

Press - national, regional, magazines and free newspapers Outdoor - posters, transport, aerial announcements Direct marketing - direct mail, leaflets, brochures, catalogues, circulars, inserts and facsimiles. As well as the content of this material, the ASA also regulates the use of mailing lists for targeting consumers Cinema commercials Sales promotions - on-pack promotions, front page promotions, reader offers, competitions and prize draws Internet - advertisements in paid for space, but not generic product information on home pages. The remit includes: Banner, pop-up and other advertisements commercial e-mails sales promotions anywhere on-line 2

Web – Controls – How is Advertising Controlled? 

Other electronic media, including advertisements on computer games, videos, viewdata services and CD-Roms

Who decides whether an advertisement breaks the rules? The ASA has a Council of 12 people who decide whether or not an advertisement breaks the Codes. The Chairman and most of the Council members are drawn from outside the advertising world and the ASA’s Chairman advertises for new lay members from a wide diversity of backgrounds. The Chairman himself is appointed by the Board of the Advertising Standards Board of Finance (ASBOF). A minority of the members work in advertising and can offer practical guidance on how the industry conducts itself. All members serve as individuals and do not represent any interest group or sector. Can the ASA have an advertisement stopped? The ASA has a number of sanctions it can use to ensure that advertisements that break the Codes are amended or withdrawn. The ASA and CAP rely on persuasion and consensus; and in the vast majority of cases companies act quickly to make any changes necessary to bring their advertisements into line with the Codes. It is not in an advertiser’s best interests to mislead or offend consumers. For the few companies who do not change or withdraw their advertisement, the ASA can draw on a range of sanctions. These are outlined below. Refusal of further advertising space The ASA’s main sanction is to ask publishers and media owners to refuse more space for an advertisement until it has been changed. Part of publishers’ terms and conditions of business is not to carry advertisements that break the Codes and most do not want to alienate their readers by carrying any that are found to be offensive or misleading. Adverse publicity The ASA publishes the outcome of all adjudications made by the ASA Council once a week on this website, with a regular hard copy summary of all decisions also available. These adjudications are read by the media, Government departments, the advertising industry and consumer bodies. The ASA's decisions are often the subject of intense media interest especially when complaints are upheld about advertisements for well-known companies. This press coverage not only informs the public that an advertisement has broken the Codes, but also deters other advertisers from misleading people or causing serious offence with their advertisements. Withdrawal of trading privileges Trading privileges, financial discounts and other incentives available through membership of some of the advertising trade bodies can be withdrawn from advertisers that do not comply with the ASA's decisions. Legal Proceedings In the case of a persistent or deliberate offender, the ASA can refer an advertiser, agency or publisher to the Office of Fair Trading (OFT). The OFT can seek an injunction through the courts to prevent the same or similar claims being made in future advertisements

3