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01|11|04

Ofcom establishes one-stop-shop for all advertising regulation through transfer of responsibility to the ASA

New rules on alcohol advertising published

The Advertising Standards Authority (ASA), which has more than 40 years’ experience of regulating non-broadcast advertising, today also assumes responsibility for television and radio advertising under a new co-regulatory system, to become a ‘one-stop-shop’ for all advertising standards and consumer complaints.

Ofcom consulted extensively in October 2003 on its initial proposals to transfer broadcast advertising content regulation to a new system to be established under the auspices of the ASA. Ofcom’s final proposals received Parliamentary approval, under the Deregulation of Contracting Out Act 1994, in July 2004.

Ofcom remains ultimately responsible for broadcast advertising under the Communications Act 2003 and will monitor the effectiveness of the new system to ensure that audiences are adequately protected. Ofcom is satisfied that the contracting out of broadcast advertising through this new system will create an effective, properly funded and sufficiently independent co-regulator.

Least intrusive means of regulation

The Communications Act 2003 encourages Ofcom to consider effective forms of self-regulation for its various functions where appropriate. This, coupled with Ofcom’s overarching principle to seek the least intrusive regulatory mechanisms to achieve its policy objectives, enables the regulator to step back from direct statutory control in some areas of its work, placing greater reliance upon industry to take more responsibility for its own actions. This approach is evident in other areas of Ofcom’s statutory responsibilities, such as:

• The appointment of the Independent Adjudicator to oversee the Contract Rights Renewal ( CRR ) remedy for the ITV television airtime sales market put in place as a result of the Carlton and Granada merger.
• The appointment of the Independent Telecommunications Adjudicator to facilitate effective processes and resolve working-level implementation disputes in the Local Loop Unbundling market.
• The new process for competition complaints and disputes which focuses regulatory resource on the issues which most warrant attention whilst minimising unnecessary and ineffective intervention.
• The introduction of spectrum trading and the liberalisation of restrictions on spectrum use, giving greater control to the users and providers of wireless communications services.

Ofcom Chief Executive Stephen Carter said: “Good regulation meets the needs of both consumers and industry without imposing undue burdens on either. The co-regulation of broadcast advertising more than meets that test. We welcome the transfer of responsibility for this area to the ASA.”

New alcohol rules

Separately, Ofcom today publishes its final amendment to the Advertising Standards Code before responsibility for future development of the Code is assumed by the new ASA-led ‘one-stop-shop’. The existing rules on alcohol advertising have been significantly strengthened in many areas, particularly to protect the under-18s.

The consultation on proposals to update the rules in Section 11.8 of the Advertising Standards Code for television was launched in July 2004. The final rules published today include changes which reflect the views of a number of consultation respondents.

The rules include requirements that:

• Advertisements for alcoholic drinks on television must not be likely to appeal strongly to people under 18, in particular by reflecting or being associated with youth culture;
• Advertisements must not link alcohol with sexual activity or success or imply that alcohol can enhance attractiveness;
• Television advertising for alcoholic drinks must not show, imply, or refer to daring, toughness, aggression or unruly, irresponsible or anti-social behaviour;
• Alcoholic drinks must be handled and served responsibly in television advertising.

With the launch today of the new broadcast advertising co-regulatory system, Ofcom has agreed that the Broadcast Committee of Advertising Practice (BCAP) will draft interpretative guidance which supports the alcohol advertising rules. BCAP is the code-making arm of the ASA-led ‘one-stop-shop’. This will enable the ASA, the advertising industry, and the Broadcast Advertising Clearance Centre to commit fully to the guidance that they will be applying in support of the rules published by Ofcom today.

The new rules will come into effect from 1 January 2005. The new rules and final statement on the consultation are available under related items.

Ends.

NOTES FOR EDITORS AND CSEs

1. The ASA today launches three new bodies with specific responsibility for broadcast advertising:
• The Advertising Standard Authority (Broadcast) (ASA(B)) – responsible for the handling of complaints about broadcast advertising.
• The Broadcast Committee of Advertising Practice (BCAP) - responsible for setting, reviewing and revising standards codes for broadcast advertising. An Advertising Advisory Committee of BCAP has also been established to give BCAP independent advice on advertising policy and code-setting issues. This committee has an independent Chairman and consists of expert and lay citizen-consumer representatives.
• The Broadcast Advertising Standards Board of Finance (BASBOF) – the body responsible for the funding of the new system.
2. Ofcom is the independent regulator and competition authority for the UK communications industries, with responsibilities across television, radio, telecommunications and wireless communications services.

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