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