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.

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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

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 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