Challenges & opportunities in Europe Christopher Graham Chairman, EASA

The challenge “The price of freedom is eternal vigilance” Wendel Phillips

The challenge In 2002 there were 47,101 complaints on advertising in Europe* (* EU + 4 applicant countries + CH + RU + TR) This represents 0.1% of total ads The problem is small The impact is big

The credibility of commercial communications is threatened if advertising: is not believed misleads consumers competes unfairly causes serious or widespread offence is socially irresponsible Effective Self-regulation supports the credibility of commercial communications Why Self-Regulation?

‘Own goals’ The credibility of self-regulation is being threatened Scepticism about its effectiveness Lack of financial support Some advertisers continue to breach codes Opponents given too much ammunition

EU political context Challenge Opportunity Pressure to legislate Effective self- regulation

Issue/product challenges Vulnerable groups (children, elderly) Gender stereotyping Violence/social responsibility Sustainable development Health (food - obesity/diet, alcohol) Safety (cars) New media

Why the pressure? Ads which exploit children

Why the pressure? Ads which link alcohol to sex

Why the pressure? Ads which lie or mislead

Why the pressure? Ads which lack social responsibility

Why the pressure? Ads which exploit women… and men

The effect on advertising Complaints low but political and social sensitivity high Advertising is a high profile industry - everyone has an opinion Responsibility must be enforced in codes

Staying within the boundaries SR ‘polices’ agreed boundaries of the ad industry Gives advertisers and agencies greater creative freedom through responsibility Gives a more tailored and flexible alternative to detailed legislation

Wake up call For successful SR all parties must respect the boundaries Efficient self-regulation brings benefits Consumer protected without stifling commercial freedom and creativity Freedom brings responsibility

Relieve the pressure Every step over the line tips the balance Explore creative freedom within responsibility Self-regulation holds the key

Objectives of SR Individual consumer can express view directly to the ad business and the advertiser Maintain consumer confidence in advertising rapid, effective response to consumer concerns no cost to the consumer Show advertising business is engaged with the consumer actively, continuously, responsibly

EASA’s European network & partnership 24 Self-Regulatory Organisations (SROs) All EU 4 applicant countries Switzerland, Russia & Turkey 12 European industry bodies Advertisers Agencies Media

Role of EASA Single authoritative voice on advertising self- regulation issues Promote advertising self-regulation Demonstrate SR more effective than detailed legislation Encourage best practice and common high standards Stimulate improvements in national SR systems

National self-regulatory systems Supported financially, morally and practically by the entire advertising industry Advertisers, agencies and media Self-Regulatory Organisation (SRO) appointed to apply the code

Common basis of national SR codes Based on the ICC Code of Advertising Practice Legal, decent, honest and truthful Social responsibility Fair competition Reflect the cultural, legal and commercial traditions of the country

Share the opportunity Demonstrate responsibility now – don’t wait for the legislator Ensure rules are local and up-to-date Invest continually in the SR system Raise consumer awareness and gain their trust Educate the marketeers of tomorrow Provide compelling evidence that self-regulation works We love advertising so much that at times we have to stop it

EASA Common Principles Designed to guide all participants in the self- regulatory process in their work and apply to both on and offline advertising Consumer benefits Transparency and access Independence Effectiveness Efficient complaint handling and enforcement SR and the law

How can EASA help? Extensive self-regulatory network providing working examples & expertise Start up examples, info and research Engage active support of major players and European advertising community Opportunity Challenge Pressure to legislate Effective self- regulation

Last words Grasp the opportunity Prove there is a viable alternative to further detailed legislation Leo Burnett: “These things pay off - good taste, a high standard of ethics, an attitude of public responsibility and low pressure”