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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.

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Topics to be covered

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  1. The Advertising Standards AuthorityLeveson Inquiry: regulatory models briefingGuy ParkerChief ExecutiveLynsay TaffeDirector of Communications5 October 2011

  2. Topics to be covered Overview of ASA and self-/co-regulatory system Advertising Codes New online remit Sanctions

  3. 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 self-regulatory 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

  4. 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

  5. ASA Broadcast Regulates TV and radio ads under contract from Ofcom 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 Non- Broadcast Advertising, Sales Promotion and Direct Marketing Two separate industry bodies that write and help enforce the Advertising Codes The ASA and CAP Independently administers and enforces rules laid out in the Advertising Codes

  6. How we’re funded Voluntary levy collected by Asbof/Basbof Independent of ASA 0.1% levy on ad spend 0.2% on mailsort contracts

  7. 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

  8. 360° regulation

  9. ASA Council Members

  10. 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

  11. 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

  12. 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-paid-for space under their control, such as social networking sites like Facebook and Twitter.

  13. 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.

  14. 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

  15. 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

  16. Thanks for listening

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