Review of Operations 2016

Advertising Standards Bureau – Bureau Advertising Standards www.adstandards.com.au Review of Operations 2016 Level 2, 97 Northbourne Avenue, Turner ACT 2612 Review of Operations 2016 Ph: (02) 6173 1500 | Fax: (02) 6262 9833 Follow us on Twitter: @Ad_Standards Copyright © 2016 Advertising Standards Bureau All rights reserved. Printed in Australia. Published by the Advertising Standards Bureau, Level 2, 97 Northbourne Avenue, Turner ACT 2612. Contents Who we are 2016 2 Executive reports 8 Achievements 15 Board reports 23 Independent review 61 Statistics 65 Who we are 2016 The Advertising Standards Bureau (ASB) administers Australia’s national system of self-regulation in relation to both public and competitor complaints. This is achieved through the independent • explaining the role of advertising in a free advertisements in order to provide a seamless complaints resolution processes of the Advertising enterprise system complaint lodgement system for consumers. Standards Board and the Advertising Claims • running other regulatory systems as Board respectively. Public complaints about particular advertisements contracted from time to time. in relation to the issues below are considered The ASB has an ongoing commitment to In 2016 the ASB administered the following cost-free to the community by the Advertising international best practice in advertising codes of practice: Standards Board: self-regulation and measures its performance in administering Australia’s advertising • Australian Association of National • health and safety self-regulation system against international Advertisers (AANA) Code of Ethics • use of language standards. The European Advertising Standards • AANA Code for Advertising and Marketing Alliance (EASA) and the World Federation • use of sexual appeal in a manner that is Communications to Children of Advertisers best practice guides and exploitative and degrading the International Chamber of Commerce • AANA Food and Beverages Advertising and • discriminatory portrayal of people Consolidated Code of Advertising and Marketing Marketing Communication Code Communication Practice all provide important • concern for children • AANA Environmental Claims in Advertising benchmarks in this area. and Marketing Code • portrayal of violence, sex, sexuality and nudity Advertising self-regulation has been part of the • AANA Wagering Advertising & Marketing • advertising to children Australian advertising landscape for the past Communication Code • advertising of food and beverages 40 years. The current system is not the original • Federal Chamber of Automotive Industries • advertising of motor vehicles system of advertising self-regulation in Australia. (FCAI) Voluntary Code of Practice for It was preceded by the Advertising Standards Motor Vehicle Advertising • advertising of wagering Council (ASC) established in 1974 to hear consumer complaints about advertisements • Australian Food and Grocery Council An Independent Review process continues to and determine if they were in line with the (AFGC) Responsible Children’s Marketing provide the community and advertisers a channel Advertising Code of Ethics. Initiative of the Australian Food and through which they can appeal decisions made by Beverage Industry the Advertising Standards Board. The Bureau was established, in 1998, for the • AFGC Quick Service Restaurant Initiative purposes of: Competitor claims between advertisers in relation for Responsible Advertising and Marketing to truth, accuracy and legality of particular to Children. • establishing and monitoring a self-regulatory advertisements are considered on a user-pays basis system to regulate advertising standards The ASB also works with the Alcohol Beverages by the Advertising Claims Board. in Australia Advertising Code (ABAC) management • promoting confidence in, and respect for, the scheme, and accepts, and forwards to the ABAC general standards of advertising on the part of administrator, all complaints about alcohol the community and the legislators Advertising Standards Bureau 2 The The The Advertising Advertising Advertising Standards Standards Claims Board Bureau Board The Advertising Standards Board determines The ASB administers the advertising The Advertising Claims Board resolves public complaints about individual self-regulation system, accepting complaints complaints between advertisers, through a advertisements, through a panel of public about advertisements for determination by panel of legal specialists. representatives from a broad cross-section of the Advertising Standards Board and the the Australian community. Advertising Claims Board. AANA AFGC ABAC FCAI The Australian Association The Australian Food and The Alcohol Beverages The Federal Chamber of of National Advertisers is Grocery Council is responsible Advertising Code is the Automotive Industries is responsible for the AANA for the Responsible Children’s code for alcohol advertising responsible for the FCAI Advertiser Codes which are Marketing Initiative of the Food self-regulation by the ABAC Voluntary Code of Practice administered by the ASB. and Beverage Industry and Complaints Panel. All for Motor Vehicle Advertising the Quick Service Restaurant complaints about alcohol are which is administered by Initiative for Responsible received by ASB and forwarded the ASB. Advertising and Marketing to to ABAC. Both ASB and Children. Complaints for both ABAC may consider complaints initiatives are administered by about alcohol advertising. the ASB. Review of Operations 2016 3 Funding of self‑regulation Who funds the Management of the funds is outsourced, with Confidentiality of levy collected the financial accounts prepared by chartered self‑regulation system? accountants and audited independently. The amount of levy collected from individual Responsible advertisers assist in maintaining the advertisers is kept confidential from the self-regulation system’s viability and support its What the levy is used for Board and Directors of both the ASB and the administration by agreeing to a levy being applied AASC. This ensures appropriate commercial All levy monies are applied exclusively to the to their advertising spend. At the establishment of confidentiality about the expenditures of maintenance of the self-regulation system and are the advertising self-regulation system in Australia, individual advertisers. used to finance activities such as: the levy was set at 0.035 per cent, just $3.50 per $10,000 of gross media expenditure. Since • general ASB administration and operation April 2014 the self-regulation levy is set at 0.05% of the self-regulation system, including ($500 per $1m of media buying). maintenance of complaints management Funding of the Advertising Standards Bureau • recruitment of Advertising Standards Board (ASB) and its secretariat support of the members, and attendance of 20 Board Advertising Standards Board and Advertising members from diverse geographical Claims Board is provided through the voluntary backgrounds at regular meetings levy - the ASB receives no government funding.1 • Advertising Standards Bureau meetings The levy is paid to and administered by and teleconferences with industry and the Australian Advertising Standards government as appropriate throughout Council (AASC). the year How levy is collected • research to assist Advertising Standards Board members and the community to The levy is collected mainly through media understand self-regulation and specific buying agencies but also directly from advertisers Code related issues, including research into and advertising agencies that buy their own community standards and levels of awareness media space. of the ASB • AANA Code reviews. The levy is remitted quarterly through the AASC, the funding body of advertising self-regulation. The AASC holds the industry funds in an account which is drawn upon to pay the ASB costs involved in administering and operating the self-regulation system. 1 Other than payments by some State and Territory departments in their capacity as advertisers. Advertising Standards Bureau 4 Snapshot 2016 complaint snapshot Number of complaints received 5,529 Number of complaints made about matters within ASB jurisdiction 3,134 Number of complaints about ads within ASB jurisdiction but previously considered by Board 914 Number of complaints made about matters outside ASB jurisdiction 1,322 Number of complaints about ads already withdrawn 49 Number of complaints assessed as consistently dismissed issues 115 Number of complaints unassessed at year end 44 2016 breach or not snapshot Number of ads the Board found consistent with Code and Initiatives 462 Number of complaints about ads found consistent with Code and Initiatives 4242 Number of ads the Board found breached a Code or Initiatives 71 Number of complaints about ads that were found to breach the Code or Initiatives 336 2016 ad snapshot Number of ads complained about 595 Number of cases created but not put forward for consideration by the Board for variety of reasons 19 Number of ads withdrawn by advertiser before consideration by Board 43 Number of ads which were NOT modified or discontinued after a complaint was upheld 18 Review of Operations 2016 5 1 Ultra Tune Australia ‑ 0024/16 ‑ TV – free to air Two women in skin tight outfits dancing with the tagline ‘we’re into rubber’. Dismissed No. of complaints: 418 Issues of concern: Section 2.1 - discrimination, Section 2.2 - exploitative and degrading and Section 2.4 - sex, sexuality and nudity. Most 2 Meat & Livestock Australia Ltd – 0017/16

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