1. The Advertising Standards Authority Leveson Inquiry: regulatory models briefing Guy Parker Chief Executive Lynsay Taffe Director of Communications 5 October 2011

2. Topics to be covered Overview of ASA and self-/co-regulatory system Advertising Codes New online remit Sanctions

3. History of the ASA The flexibility of the system to respond to changes in society and technology means self-/co-regulation continues to be the best way of keeping ads legal, decent, honest and truthful. 1961: Advertising Association establishes self-regulatory system for non-broadcast advertising 1962: ASA established as the independent adjudicator to supervise the working of the new self- regulatory system in the public interest Early 1970s: sales promotion rules introduced 1975: Asbof levy introduced 1990: use of data for direct marketing purposes rules introduced 1988: Control of Misleading Advertisements Regulations implemented 2004: ASA/CAP system assumes responsibility for regulation of TV and radio ads 2008: CPRs and BPRs implemented 2011: The ASA’s digital remit is extended to cover websites

4. The ASA system ‘One-stop shop’ for ad complaints across all media Both self-and co-regulatory Advertisers, agencies and media commit to ‘legal, decent, honest and truthful’ advertising Mandatory Codes, written by two Committees of Advertising Practice (CAP and BCAP) maintain standards for consumer protection and fair competition Independent ASA adjudicates on complaints and monitors compliance Arms-length funding by two Boards of Finance (Asbof and Basbof) Transparent, proportionate, targeted, evidence-based

5. The ASA and CAP Independently administers and enforces rules laid out in the Advertising Codes ASA Non-broadcast Nearly 50 years of operation; independent from Ofcom ASA Broadcast Regulates TV and radio ads under contract from Ofcom Two separate industry bodies that write and help enforce the Advertising Codes Writes and helps enforce the UK Code of Broadcast Advertising Writes and helps enforce the UK Code of Non- Broadcast Advertising, Sales Promotion and Direct Marketing

6. How we’re funded Voluntary levy collected by Asbof/Basbof Independent of ASA 0.1% levy on ad spend 0.2% on mailsort contracts

7. The benefits of self-regulation Trust in advertising –Good for business and consumers Corporate social responsibility – Industry has a stake in its own rules Fast –Quicker than the courts –Responsive to technological and social change

8. Mandatory Advertising Codes Training and Advice Monitoring and compliance Complaints and investigation Independent Council Effective sanctions Transparent communication 360 ° regulation

9. ASA Council Members

10. Advertising Codes All ads must be legal, decent, honest and truthful Prepared with a sense of responsibility Must not mislead, harm or offend Advertisers / broadcasters must hold evidence to support all claims Special rules, e.g.: –Alcohol –Children –Environmental claims –Health and beauty

11. Recent changes One Broadcast Code from the four previous TV and Radio Codes TV and radio: a new general social responsibility rule TV: environmental claims section All Codes: introduction of specific and general provisions from the Nutrition and Health Claims on Foods Regulation TV: explicit scheduling restriction on ads for 15+ age-rated video games Data collection: rules to prevent marketers from collecting data from U12s without obtaining the consent of their parent or guardian

12. New digital remit for the ASA Came into force on 1 March 2011 Ensures the same high standards as in other media and covers: Advertisers’ own marketing communications on their own websites Marketing communications in other non-paid- for space under their control, such as social networking sites like Facebook and Twitter.

13. Defining a ‘marketing communication’ Advertisements and other marketing communications by or from companies, organisations or sole traders on their own websites, or in other non-paid-for space online under their control, that are directly connected with the supply or transfer of goods, services, opportunities and gifts, or which consist of direct solicitations of donations as part of their own fund-raising activities. i.e. The primary intent is to sell something or raise funds, though not necessarily immediately via a transactional facility.

14. Complaint, case and enquiry levels First six months: 15,622 complaints (up 7%) about 11,823 cases (up 81%). Untypically few multi-complaint cases On course for around 7,500 digital remit cases in 2011 (2,500 predicted) Copy Advice enquiry levels substantially up since second half of 2010 and significant demand for paid-for Website Audits

15. Sanctions Adverse publicity Media refusal via Ad Alerts Poster and press ad pre-vetting Withdrawal of trading privileges – including bulk mailing discounts Online sanctions: enhanced name and shame search engine suspension of paid search campaigns ASA paid search ad campaign No fines, but referral to OFT/ Ofcom

16. Thanks for listening