Presentation on theme: "Covert Advertising - the notion and regulation in the UK"— Presentation transcript:
1 Covert Advertising - the notion and regulation in the UK Joanna Wrona
2 Covert advertising – the notion Continental law :Covert advertising – type of unfair advertising“la publicité clandestine”, “la publicité cachée, “Getarnte Werbung”Covert advertising - a statement encouraging the purchase of goods and services, that gives the impression of neutral information, thus misleading consumers as to its characterEnglish law:No legal control over unfair advertising - lack of definition and general ban on covert advertising
3 The notion of covert advertising in the UK English law and soft law:Advertisements not recognizable as suchAdvertisements not identifiable as such– the equivalent to covert advertisementsAdvertisement not recognizable as such:an advertisement (within the meaning of the relevant regulation) that influences consumers’ economic choices, without them being aware of it and thus misleading consumers as to its character.
4 The notion of covert advertising in the UK Advertisements not recognizable as such mislead consumers – type of misleading advertisingThe approach confirmed by:Council minutes of the adoption of the Directive on Misleading AdvertisingASA adjudicationsOFT interpretation
5 Regulation of covert advertising in the UK Self-regulation:The British Code of Advertising, Sales Promotions and Direct MarketingCo-regulation:BCAP Radio Advertising Standards CodeBCAP TV Advertising Standards CodeBCAP Rules on the Scheduling of Television AdvertisementsAll advertisements should be legal, decent, honest and truthful
6 Regulation of covert advertising in the UK Statutory law regulates the areas harmonized at EU level:The Communications Act 2003 – the Ofcom Broadcasting CodeThe Electronic Commerce Regulations 2002The Control of Misleading Advertisements Regulations 1988
7 Enforcement Broadcast advertising - Ofcom Content of broadcast advertisements –Co-regulation: ASA + OfcomNon-broadcast advertising - Self-regulatory bodies: CAP and ASAOn-line advertising – ASA + OFT
8 Different types of covert advertising Hidden advertisements:Direct marketingCinemaMobile phone messagesRule 22.1 BCASP&DM: marketers, publishers and owners of other media should ensure that marketing communications are designed and presented in such a way that is clear that they are marketing communications
9 Advertorials (Advertisement features) Rule 23.1 of BCASP&DM: Advertisement features, announcements or promotions(…)that are disseminated in exchange for a payment or other reciprocal arrangement should comply with the Code if their content is controlled by the marketers rather than publishers.Rule 23.2.: Marketers and publishers should make clear that advertisements features are advertisements(…)
10 Covert advertising in Internet Requirement of clear identification of:on-line commercial communications (banners, pop-ups):reg. 7 of E-Commerce Regulations 2002rule.22.1 BCASP&DMunsolicited commercial communicationsreg. 8 of E-Commerce Regulations 2002rule 22.1: Unsolicited marketing communications should be clearly identifiable as marketing communications without need to open them.
11 Covert advertising in radio and TV The principle of clear separation of advertising and editorial material- the presence of artists/actors in advertisements adjacent to the programme in which they appear (rule BCAP Rules on the Scheduling of TV Advertisements)- the appearance of radio/TV presenters in advertisements broadcasted on the same station/channel (rule BCAP TV Code & s.2 r. 24BCAP Radio Code)- resemblance of advertisements to news studio, news style etc. (s.2 r. 1 BCAP Radio and r TV Code)
12 Covert advertising in radio and TV Prohibition of :undue prominenceproduct placement(Sec. 10 Ofcom Broadcasting Code)Debate on the liberalization of rules on product placement (both in the UK and EU)Subliminal advertisingBanned by rule 2.12 Ofcom Broadcasting Code & rule BCAP TV Code)
13 Conclusions:Very important role of self-regulatory bodies in the control of covert advertisingSoft enforcement measuresMuch less effective enforcement in the field of broadcast advertising than non-broadcast advertisingNo action taken in the field of product placement and subliminal advertising