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ADVERTISING STANDARDS AUTHORITY OF SA (ASA)ADVERTISING STANDARDS AUTHORITY OF SA (ASA)
Portfolio Committee on Communications
14 June 2011
ESTABLISHMENT & FORM 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 MANDATEASA MANDATE
To protect consumers and ensure professionalism among
advertisers
(Code of Advertising Practice, Preface xix, Issue 9)
ASA MANDATE (cont.)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.)ASA MANDATE (cont.)Philosophy underpinning ASA operationsASA operates in a constitutional democracy ASA has to adhere to and apply
SA ConstitutionPrinciples 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?… 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?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?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 inEurope – the blue book
ADVERTISING A SERVICE TO PUBLIC
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?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 self-regulation
WHAT ARE BENEFITS OF SELF-REGULATION?
WHAT ARE BENEFITS OF SELF-REGULATION?
• FOR CONSUMERS
• Quick, uncomplicated, easily-accessible and cost-free
• Flexible to change to societal views
• Immediate sanction/withdraw
WHAT ARE BENEFITS OF SELF-REGULATION?
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?WHO APPLIES THE RULES?Final Appeal Committee
AdvertisingStandardsCommittee
Directorate
Advertising IndustryTribunal
CODE OF ADVERTISING PRACTICECODE 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)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 ASANOT … purpose of ASA
Contractual disputes
Quality of products/services
Legitimacy of business practices
Political advertising
Controversial subjects/Advocacy advertising
Re-active body, does not monitor advertising
ACTIONACTION
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…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 ALERTAD ALERT
Television Newspapers Radio Magazines Outdoor Cinema
!
ASA SINCE 2002ASA SINCE 2002
SINCE 2002:SERVICE TO CONSUMER
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
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 RULESCONSUMER RULES
SINCE 2002:TRADE AND INDUSTRY ASSESSMENT
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
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 AWARENESSEFFECT 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
the effect of ”ASA advertising campaign” leading to increased awareness and consequently, number of complaints
the magnitude of consumer complaints we have addressed
CURRENT : ASA & the CPACURRENT : 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: CHALLENGESCURRENT: 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
ENDEND