Advertising Regulation

31-Oct-14

Categories of Advertising

Broadcast Advertising Regulation

Preclearance and Clearcast

Non-broadcast Advertising Regulation

Questions

There are two categories of advertising in the UK

Broadcast Advertising

Non- Broadcast Advertising

Broadcast Advertising is: spot advertising on radio and TV and teleshopping

Non- Broadcast Advertising is:

They share a single regulator, but the legal framework is different

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Is co-regulated

Broadcast Advertising

Non- Broadcast Advertising

Is self-regulated

Broadcast Advertising Regulation Framework

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Broadcast Advertising is co-regulated

• Government-approved regulatory and competition authority for the broadcasting, telecommunications and postal industries

• Funded by the industry and grant in aid from the government

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Broadcast Advertising is co-regulated

• Independent regulator of advertising across all media

• Funded by the advertising industry

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Broadcast Advertising is co-regulated

• Ofcom has a statutory duty to maintain standards in broadcast advertising and delegates powers to the ASA

• ASA is responsible on a day-to-day basis for broadcast advertising content standards:

• Investigates complaints • Publishes adjudications

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The rules themselves are written by Broadcast Committee of Advertising Practice (BCAP) • BCAP is self-regulatory, and

made up of representatives of advertisers, media owners, agencies and clearance bodies

• Ofcom retains overall sign-off on major changes to the Code

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Responsible in law

Investigates and Adjudicates

Makes rules

Ofcom have not delegated responsibility for decisions on

• Political Advertising • Prohibited from UK Broadcast media by law (allowed on non-broadcast)

• Broadcast sponsorship • due to sponsorship’s strong links with programming and editorial issues

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Preclearance and Clearcast

It is a condition of UK Broadcaster licenses that all advertising in broadcast media should not mislead, cause harm or offend

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And that broadcasters should therefore clear ads against the BCAP code prior to transmission

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Preclearance Bodies

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Clearcast is jointly owned by the UK’s 6 largest broadcasters

Clearcast

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1. Check that claims can be substantiated, reviewing evidence

“The most environmentally-friendly car” “No one is cheaper” “Exclusive”

Clearcast

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2. Check that scripts and finished commercials meet the BCAP rules, providing advice

Clearcast

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3. Apply timing restrictions and scheduling information

For TV and Radio the ultimate responsibility for complying with rules lies with Broadcasters

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Some of the things Clearcast consider

• Claims and Omission • Harm and Offence • Denigration • Context, eg charity • Specific rules, eg Alcohol • Superimposed Text

Restrictions Post

11pm

Post 10pm

Post 9pm

Post 7.30pm

Ex Kids

Any time

L1

L2

L3

L4

L5

Scheduling – product categories

Gambling Kids’ spin-off products

HFSS Cert 15+

Film Trailers & Video Games

Slimming products

Licensed medicines

Condoms San Pro

Alcohol

Products that receive automatic scheduling restrictions:

Info for broadcasters

Website

Supers

Nazi footage Phone numbers

Guns

Explosions

Unidentified artists

Suitable for under 9s?

Competition mechanic

Codes give detail about ad content to help broadcasters schedule accordingly.

Clearcast in numbers

3,547 Registered users of our copy clearance system

35,646 Scripts submitted

65,091 TV Commercials submitted

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Responsible in law

Investigates and Adjudicates

Makes rules

Pre-clears TV ads Advises on VOD

Responsible in law

Investigates and Adjudicates

Makes rules

Pre-clears TV ads Advises on VOD

Licensees (eg Broadcasters)

Advertisers

Broadcasters

Who What Funded by

Complaint Defence Draft

Recommendation Final

Decision

ASA Investigation Process

Not Upheld Upheld or

0.1%

Percentage of ASA upheld complaints against total ads viewed by Clearcast

The usual sanction for upheld complaints is being “named and shamed”. Ads must be withdrawn or amended.

The ASA can refer broadcasters to Ofcom for further sanctions if they feel it is necessary.

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• Fines

• Licence Revocation

Non- Broadcast Advertising is:

Responsible in law

Investigates and Adjudicates

Makes rules

Pre-clears TV ads Advises on VOD

Broadcast

Investigates and Adjudicates

Makes rules Provides copy advice

Non-Broadcast

Importantly, non-broadcast remit of CAP and ASA extends to:

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• banners, • pop-ups, • Viral communications, • sponsored search, • marketing communications on companies’

own websites and • other non-paid for space under

advertiser’s control

Non-broadcast advertising is wholly self-regulated

• “CAP code” determined by advertisers, agencies and media owners

• No preclearance, but advertisers must hold evidence for claims they make

• ASA investigate and adjudicate on complaints. • Ads must be withdrawn or amended following

upheld complaints. • “Name and Shame”. No fines but media

owners may be warned about Advertiser.

Benefits of the system

• Easier for consumers • Free to the taxpayer • Simpler for advertisers • Technology neutral and high standards for

all approach • Harmonious decision making across media • Corporate social responsibility

Benefits noted by ASA

Useful links

• Ofcom • ASA • ASA Adjudications • CAP and BCAP • Basbof and Asbof • Clearcast • RACC • CAA and BBFC

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