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ASA will have new powers to regulate websites PDF Print E-mail

The Advertising Standards Authority (ASA), the UK’s independent advertising regulator, adjudicates on complaints about advertising made under the new Advertising Codes, in force since 01 September 2010.

ASA’s current remit does not include regulation of general site content but only paid-for online advertising and sales promotions.

From 01 March 2011, ASA will be able to regulate and intervene in relation to:

  • advertisers’ own marketing communications on their websites, to ensure that their standard is as high as in newspapers and TV;  and
  • marketing communications in non paid-for space under their control such as social networking sites like Facebook and Twitter.

to ensure that the principles of misleading advertising, consumer protection, protection of children and similar are implemented across all sectors and all businesses and organizations, regardless of size. ASA intervention and regulation powers will not apply to journalistic and editorial content and marketing related to ideas unless they solicit or encourage fundraising donations.

ASA will be undertaking an ongoing, quarterly review of the extended remit with the intention of carrying out a comprehensive review of its new powers towards to mid of 2013.

In addition to the potential sanctions ASA can currently impose, from 1 March 2011, ASA will be able to impose the following sanctions:

  1. to request, with the agreement of search engines, the removal of paid-for links to pages hosting a banned advertisement; and
  2. to name and shame a non complying advertiser by placing its own adverts online highlighting continued refusal to comply with a ruling.

Consumer magazine “Which” anticipates that advertisements and claims for technology services including broadband services are likely to come under scrutiny under the new rules.

 
New codes for advertising in the UK in force from 1 September 2010: a quick checklist of the key changes PDF Print E-mail

CAP (British Code of Advertising, Sales Promotion and Direct Marketing Code) and BCAP (Broadcasting Advertising Standards Code) were revised in March 2010 following a public consultation and have now (1st September 2010) come into effect.

 

The new rules reinforce the principle that “all advertising should be legal, decent, honest and truthful” and contain a number of key changes including in relation to consumer protection and social responsibility.

 

In particular,

  • Television and radio advertising has been consolidated in one new broadcast Code;
  • Television and radio advertising is required to have regard to and consider social responsibility;
  • The new broadcast and non-broadcast Codes contain similar rules in key areas such as misleading advertising, harm and offence;
  • The new Codes are designed to be simple, user-friendly providing useful guidance.

 

Key changes:

 

 

Consumer protection:

 

~The new Codes include clarification on how to use the word "free" and other qualifications in marketing communications. Price statements must take into account guidance from BIS.

~The new CAP Code will contain a specific requirement that debt advice and debt solutions advertisements should comply with guidance from the OFT.

~New rules oblige the marketing manager of prize promotions to be clear about the number and nature of prizes, including those that are available to win and those that are guaranteed to be won, as well as ensuring that recipients of "instant wins" are able to obtain their prize quickly and easily.

 

Distance selling:

 

~The BCAP is now aligned with the laws on distance selling, clarifying that the consumer can cancel within 7 days for any reason.

~Advertisers must fulfill orders within 30 days unless they have agreed a longer period.

~The Codes also include rules requiring the marketing manager  to make clear his/her identity.

 

 

Children:

 

 

~Marketers are now prevented from collecting personal information from children under 12 years old without obtaining the consent of their parents or guardian.

~Further restrictions exist for the collection of information from the under 16s.

~New rules guide advertisers so that they do not to fall foul of the ban on exhorting a child to buy a product or persuading adults to buy a product for them, since this ban is a legal requirement.

~Advertisements for age-restricted computer and console games should comply with new television and radio scheduling requirements.

~Advertisements are prohibited from exploiting the trust that children and young people place in parents, teachers or other people.

~Competitions directed to children must include all significant qualifying conditions and where appropriate parent permission together with a clear end date.

 

Health:

~The new Codes reflect the main provisions of the European Regulation on Health and Nutritional Claims.

~The new Codes reflect the requirements of Directive 2004/24/EC about advertising herbal medicines.

~A new rule has been introduced in line with an existing television rule to protect people who might be harmed by flashing images in advertising.

 

Social and environmental responsibilty:

 

~A new principle of social responsibility is introduced for broadcast advertising, which requires that all advertisements are prepared with a sense of responsibility to the audience and to society.

~A rule is introduced in the environment section of the Codes preventing marketers from exaggerating the environmental benefits of their products.

~A new lottery section will be introduced, which will cover the National Lottery and lotteries licensed under the Gambling Act 2005, addressing lottery advertising and making it subject to the same social responsibility rules as other forms of advertising.

All articles are for general purposes and guidance only and do not constitute legal or professional advice.

Copyright 2010 Anassutzi & Co Limited. All rights reserved.

 
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