Advertising Standards Bureau – Review of Operations 2016
www.adstandards.com.au 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 - TV – free to air complained Newsreader Lee Lin Chin gives the instruction to commence ‘Operation Boomerang’ - a mission to rescue Australians from various countries so that they will be able to eat lamb on Australia Day. about ads in Dismissed No. of complaints: 376 2016 Issues of concern: Section 2.1 - discrimination, Section 2.3 - violence and Section 2.6 - health and safety.
3 BCF – 0434/16 - TV – free to air Advertisement promoting boating camping and fishing gear which used the phrase ‘BCFing fun’. Dismissed No. of complaints: 248 Issue of concern: Section 2.5 - language.
4 Meat & Livestock Australia Ltd – 0018/16 - Internet Newsreader Lee Lin Chin gives the instruction to commence ‘Operation Boomerang’ - a mission to rescue Australians from various countries so that they will be able to eat lamb on Australia Day. Dismissed No. of complaints: 241 Issues of concern: Section 2.1 - discrimination, Section 2.3 - violence and Section 2.6 - health and safety.
5 Ultra Tune Australia - 0020/16 - TV – free to air Two women are in a car which breaks down on train tracks. Upheld No. of complaints: 208 Issues of concern: Section 2.1 - discrimination, Section 2.2 - exploitative and degrading and Section 2.4 - sex, sexuality and nudity.
Advertising Standards Bureau 6 6 Meat & Livestock Australia Ltd – 0019/16 - Internet – Social – Other Newsreader Lee Lin Chin gives the instruction to commence ‘Operation Boomerang’ - a mission to rescue Australians from various countries so that they will be able to eat lamb on Australia Day. Dismissed No. of complaints: 130 Issues of concern: Section 2.1 - discrimination, Section 2.3 - violence and Section 2.6 - health and safety.
7 Ultra Tune Australia - 0040/16 - TV – free to air Two women are in a car which goes off a cliff after being put into the wrong gear. Dismissed No. of complaints: 113 Issues of concern: Section 2.1 - discrimination, Section 2.2 - exploitative and degrading and Section 2.4 - sex, sexuality and nudity.
8 Roadshow Film Distributors Pty Ltd – 0266/16 - TV – free to air Advertising for upcoming horror movie. Upheld No. of complaints: 82 Issue of concern: Section 2.3 - Violence.
9 Medibank Private Ltd – 0062/16 - TV – free to air Showed different family groups and highlighted that their product would be good for all of them. Dismissed No. of complaints: 66 Issue of concern: Section 2.4 - sex, sexuality and nudity.
10 Honey Birdette – 0217/16 - Poster Window poster showing woman from behind in revealing underwear. Upheld No. of complaints: 59 Issues of concern: Section 2.1 - discrimination, Section 2.2 - exploitative and degrading and Section 2.4 - sex, sexuality and nudity.
Review of Operations 2016 7 Executive reports
Chairmen’s report
CEO’s report
ASB Board of Directors Chairmen’s report
Ian Alwill – retiring Chair David Scribner – Acting Chair My last year as Chair of the We have great respect for Board of Directors of the the work done by previous Advertising Standards Bureau, members of the Bureau continued as my term began Board and thank them all for – making the advertising leaving us with an advertising self-regulation system in complaints system that is Australia operate in a robust able to meet all challenges manner, enabling the Directors, and adapt quickly to the Bureau and Advertising coming changes. Standards Board to meet the challenges of such a rapidly The current Board of Directors is motivated evolving advertising system. to uphold and further develop elements of the complaint handling process of the advertising self-regulation system. As determined by the Certainly the challenge to meet community, industry, community and government. industry and government expectations, in the context of rapid and paradigm shifting advertising The need to have a thorough understanding of practice, have been a constant in my 12 years on all stakeholder requirements is one of the main the Board of Directors and I expect that will not objectives the Board will be working toward change in the future. during the coming year. I believe this work will ensure the system continues to benefit The challenges are welcome and have driven all stakeholders. positive changes to the Bureau, Board and self-regulation in general and I see this as The Directors pay tribute to the dedication of something which needs to continue into the the Advertising Standards Board and thank future. The Bureau’s work in championing the staff at the Bureau for their dedication in self-regulation of advertising in the APEC region administering the complaints arm of Australia’s has been another positive role, of which I have self-regulation system and also the role they play been excited to be part. The potential economic in promoting and championing the importance of benefit to the region is vast. self-regulation in the Australian community.
In handing over to the new Board of Directors I know am leaving them with a significant and important responsibility in ensuring the Bureau, Board and advertising self-regulation in Australia is maintained at the world-leading level it currently holds.
Review of Operations 2016 9 CEO report
Fiona Jolly, Those who are new to the ASB are always a threat to our otherwise impressive compliance surprised by the variety, complexity and volume rate posed from a very small number of businesses Chief Executive Officer of work that is required behind the scenes. I will advertising on their own premises who declined to As custodians of the mention just a few highlights. remove advertising and marketing material found to be in breach of community standards as judged complaints resolution half of One way of demonstrating our commitment by the Advertising Standards Board against the the advertising self-regulation to meeting diverse stakeholder needs is to Australian Association of National Advertisers system, it is the role of the ensure the system is operated according to (AANA) Code of Ethics. We were very pleased Directors and staff of the both international and Australian best practice therefore to have had success in working with standards. Domestically, ASIC Regulatory the Queensland Government to have an effective Advertising Standards Bureau Guide 139, approval and oversight of external ‘legislative backstop’ put into place (read more in to ensure the complaints dispute resolution schemes (ASIC RG 139) the achievements section). This initiative should system is operated in a provides important guidance from the Australian have our compliance rate back at world leading manner that meets the needs Government for the operation of self-regulation rates in 2017. systems. Internationally, the advertising of industry, the community and self-regulation best practice guidance is well Ensuring the community understands where government. accepted as being that set out in the EASA Best to take concerns about advertising is another Practice Recommendations. important best practice element. The ASB made significant effort to raise awareness in Integral to best practice is that the self-regulation the community of its work through the use of system operates with full support of industry. social media during 2017 (read more in the The complaints resolution half of the advertising achievements section). While more people in the self-regulation system is fortunate to have community interacted with the ASB – through support of all sectors of the advertising industry lodging complaints, or reading our social and – advertisers themselves of course, but also very traditional media information – there appears still significant contributions and support from to be some confusion regarding who and what the media buying, creative, and media sectors. constitutes the various elements of the complaints Also integral to the success of the system are resolution part of the advertising self-regulation the various industry bodies and of course the system. In an effort to address this issue, we organisations that form the other half of the are pleased that in late 2016 we made the first self-regulation system –the creators and keepers of steps in finding out exactly what our various the industry Codes that the ASB administers. stakeholder groups think about the ASB and what they need, and the results of this research will be Essential to both the domestic and international implemented in 2017 through more targeted and standards for self-regulation, is effective on point information to each stakeholder group, enforcement and compliance. During 2015 and and we hope also through a refreshed look and 2016 the ASB continued to have concerns about feel for the ASB.
Advertising Standards Bureau 10 During 2016 we also focused on keeping our accessibility, efficiency were part of the ASB’s Advertising Standards Board, 20 members of every day, and that as a team we ensured our focus the Australian community with no ties with on continuous improvement of all aspects of industry or consumer groups, well informed our complaints resolution system. My particular and well supported in their decision making. thank you to Ian, with whom I have worked While we farewelled a number of members closely for nearly 12 years. Ian understood the of the Board we were successful in our goal of importance to industry of a well-respected, and increasing the diversity of the Board membership robust self-regulation system and demonstrated and welcomed four new members from diverse the utmost integrity in his Chairmanship. Ian cultural backgrounds (see the Board reports has been able to hand over a robust and well section). Most challenging to the work of the governed company to the new Board of Directors, Board in 2016 is further expansion to the media and I look forward to working with them and to and spaces in which advertising and marketing meeting the challenges and opportunities that communications appears. During 2016 the Board 2017 holds. considered complaints about Snapchat for the first time. Thank you to all Board members for the commitment and thought you demonstrate in all decision making, and in being able to work as a team in a manner that respects such diversity of opinion.
A small team of hard working staff at the ASB dealt with more than 5000 complaints and hundreds of phone calls from members of the community in 2016. At times a very challenging role, every member of the team has stretched themselves to ensure the ASB undertakes its task effectively and efficiently. My sincere thanks to everyone for their dedication and sense of humour.
At the end of 2016 we farewelled three long standing members of the Bureau Board of Directors – Ian Alwill, Chairman since 2005, Hayden Hills and John McLaren. All three contributed their time and intellect to ensuring the values of transparency, independence,
Review of Operations 2016 11 A champion of advertising self-regulation The retirement of Mr Ian Alwill from the Advertising Standards Bureau Board of Directors saw the departure of a genuine and tireless champion of advertising self-regulation.
In his 12 years of dedicated service, ten as Overall, Ian’s work has ensured that any scrutiny Chairman of the Board of Directors, Ian of the Bureau or Board processes will result in continually pushed for changes and further the conclusion that the ASB administers an improvements to the system of advertising independent, responsive, transparent, efficient and self-regulation in Australia. accessible complaints system. This is borne out in repeated conclusions by various governments that Since his appointment to the Board of Directors advertising self-regulation as operated by ASB is in 2004 Ian welcomed the input and dedication a better option than government intervention and of his colleagues from all industry sectors on that ASB is best placed to regulate advertising the Board of Directors. He also encouraged standards in Australia. and supported the work done by staff at the Advertising Standards Bureau in managing Ian also supported and participated in work the ever-changing platforms of advertising and to engage APEC economies in developing a Ian speaking at an ASB function during his 10-year term marketing communication. regional awareness of the benefits of advertising as Chairman of the Board of Directors. self-regulation. As Chief Executive Officer since 2005 Ms Fiona Jolly said Ian’s leadership and dedication had The work in this area has meant the ASB has supported her in her role at the ASB in making developed important relationships with APEC continual improvements to ensure a world-leading economies and can look forward to working complaints administration system. with regional partners to strengthen advertising self-regulation systems and standards – work His vision and support allowed for one of the that will benefit Australian industry and the major changes to the ASB in the past 10 years communities in the APEC economies. – changes to the number and composition of the Advertising Standards Board in 2008. Ian’s support for this change illustrated the importance he placed on strengthening the independence and diversity of the Board and ensured the complaints system and self-regulation system would survive any challenges to its purpose and operations.
Advertising Standards Bureau 12 Changing face of the Board of Directors
Three long-standing Board In addition to the retirement of Ian, Bureau Board The Bureau Board has the integrity of the members who made significant Chair and advertising self-regulation champion, advertising self-regulation system at heart. It contributions to the strategic the two other retirees John and Hayden both insists on absolute separation between the work voluntarily contributed over many years to the of the Bureau Board and that of the Advertising direction and success of success of the ASB. Their particular contributions Standards Board. self-regulation retired from the to stakeholder and financial management, and Bureau Board of Directors to governance and understanding of evolving The Advertising Standards Bureau is a limited in November 2016 – Mr Ian creative challenges mean ASB is well placed to company headed by a Board of Directors. Under face any coming challenges. Hayden and John’s the Constitution of the Advertising Standards Alwill, Mr Hayden Hills and Mr contributions, wisdom and independent outlook Board, there must be between three and six John McLaren. will be missed. directors of the company that is the Advertising Standards Bureau (the ASB). New Directors - Ms Andrea Martens, Mr Matthew Hall, and Mr John Broome - During 2016, the role of company secretary was were appointed at the ASB Annual General managed by Ms Simone Carton, the ASB’s Legal Meeting on 24 November 2016. They joined and Policy Manager. three continuing members - Ms Victoria Marles, Mr Andrew Caie and Mr David Scribner.
The Bureau Board is responsible, with the CEO, for the corporate governance of the Advertising Standards Bureau. With strategic, financial and operational concerns within its purview, the Board works to continually improve the operation of the ASB in its role, to promote advertising standards and the self-regulation system and to administer the complaints resolution process for advertising in Australia.
Review of Operations 2016 13 Board of Directors (at end 2016) Retiring Board Members
David Scribner Ian Alwill Chief Executive Officer, True Local – Acting Board of Director’s Chair (Chairman and Board member 2 December 2004 – 24 November 2016)
John Broome Hayden Hills Vice President, Marketing Unilever Australia and New Zealand (Board member 2 December 2004 – 24 November 2016)
Andrew Caie John McLaren Global Marketing and Customer Experience Director, Inchcape PLC (Board member since 10 March 2009 – 24 November 2016)
Matthew Hall Managing Director, Artifex Advisors
Victoria Marles Chief Executive Officer – Trust for Nature, Victoria
Andrea Martens Chief Brand Officer, Jurlique
Meetings
The Board of Directors met nine times during 2016.
Board member Position Meetings eligible to attend Meetings attended Ian Alwill Chairman (retired November 2016) 7 5 Hayden Hills Director (retired November 2016) 7 3 John McLaren Director (retired November 2016) 7 7 Victoria Marles Director 9 7 Andrew Caie Director 9 7 David Scribner Acting Chair/ Director 9 8 Andrea Martens Director (appointed November 2016) 2 1 Matthew Hall Director (appointed November 2016 2 2 John Broome Director (appointed November 2016 2 2
Advertising Standards Bureau 14 Achievements
Strategic intent
Challenge met – record number of complaints within jurisdiction
Championing self-regulation in the region and internationally
Challenge accepted – changes supported
Changes made - high standards for wagering advertising set Strategic intent
ASB administers a transparent, robust, accessible and fair self-regulation system for advertising.
Our purpose Our vision Our values ASB exists to give voice to consumer values The Advertising Standards Bureau is the • Transparency in decision making. and guide industry in maintaining decent, foremost authority in Australia for adjudication • Accountability to advertisers and honest advertising aligning with prevailing of complaints about advertising and the community. community values. marketing communications. • Responsive to complaints.
• Independent decision making.
Advertising Standards Bureau 16 Challenge met – record number of complaints within jurisdiction
In 2016 the ASB received While the system was challenged by an increased Timeliness 5,592 complaints, the second workload due to more complaints being assessed largest number of total as being within ASB jurisdiction, this challenge The KPI for timeliness is set at 80 per cent of was met by ASB in 2016 with 533 cases being case completion within 42 calendar days. The complaints ever received in raised and considered by the Board. actual result for 2016 fell short of this target one year (5,735 in 2014). at 73.4 per cent of all cases completed within This equates to almost What does this mean? 42 calendar days. The average number of calendar 95 complaints a week and days to complete all cases was 39.1. The drop in timeliness can be attributed, in part, to the over 20 complaints each Complaints which are assessed as falling within the Codes usually require more time than those increased workload in 2016. business day. that do not. Complaints which are within jurisdiction (and have not previously been From these 5,592 complaints, 3,134 (56 per cent) considered) will be raised as a case, or linked were found to relate to new cases within to a case that has not yet been considered by jurisdiction, meaning they raised issues under the Board. the Codes and did not relate to a case that had previously been considered by the Board. This is A large amount of complaints being assessed as the largest amount of complaints ever processed as being within jurisdiction creates an increased being new cases within jurisdiction in one year. In workload for ASB staff. 2014 this number was only 2,309 (40 per cent).
Example process for complaint within jurisdiction