ADVERTISING STANDARDS AUTHORITY OF SA (ASA) Portfolio Committee on Communications 14 June 2011

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 MANDATE To protect consumers and ensure professionalism among advertisers (Code of Advertising Practice, Preface xix, Issue 9)

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.) Philosophy underpinning ASA operations  ASA operates in a constitutional democracy  ASA has to adhere to and apply SA Constitution Principles 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? “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? Play adjudicatory role Investigate complaints about content of advertising Decide whether advertising should be allowed to continue or not

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 in Europe – the blue book

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 ? 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 1 st 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? FOR CONSUMERS Quick, uncomplicated, easily- accessible and cost-free Flexible to change to societal views Immediate sanction/withdraw

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? Final Appeal Committee Advertising Standards Committee Directorate Advertising Industry Tribunal

CODE 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) 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 ASA  Contractual disputes  Quality of products/services  Legitimacy of business practices  Political advertising  Controversial subjects/Advocacy advertising Re-active body, does not monitor advertising

ACTION  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…  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 ALERT  Television  Newspapers  Radio  Magazines  Outdoor  Cinema

ASA SINCE 2002

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  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 RULES

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  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 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 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: 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

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