Advertising Standards Bureau – Review StandardsAdvertising Bureau of Operations 2013 www.adstandards.com.au REVIEW OF OPERATIONS Level 2, 97 Northbourne Avenue, Turner ACT 2612 Ph: (02) 6173 1500 | Fax: (02) 6262 9833 2013 15 years of operation Contents Who we are 2 Executive reports 8 15 years of operation 12 Achievements 20 Board report 27 Independent Reviewer 62 Statistics 66 Appendices 82 REVIEW OF OPERATIONS 2013 15 years of operation Who we are 2013 The ASB also works with the Alcohol Beverages The Advertising Standards Bureau (ASB) administers Australia’s national Advertising Code (ABAC) management system of self-regulation in relation to both public and competitor scheme, and accepts, and forwards to the ABAC complaints. administrator, all complaints about alcohol advertisements. This is achieved through the independent complaints resolution processes of the Advertising Standards Board and the Advertising Claims Public complaints about particular advertisements Board respectively. in relation to the issues below are considered cost-free to the community by the Advertising Standards Board: The Bureau was established for the purposes of: In 2013 the ASB administered the following • health and safety codes of practice: • use of language • establishing and monitoring a self-regulatory system to regulate advertising standards • AANA Advertiser Code of Ethics • use of sexual appeal in a manner that is in Australia exploitative and degrading images • AANA Code for Advertising and Marketing • promoting confidence in, and respect for, the Communications to Children • discriminatory portrayal of people general standards of advertising on the part of • AANA Food and Beverages Advertising and • concern for children the community and the legislators Marketing Communication Code • portrayal of violence, sex, sexuality and nudity • explaining the role of advertising in a free • AANA Environmental Claims in Advertising enterprise system • advertising to children and Marketing Code • running other regulatory systems as • advertising of food and beverages • Federal Chamber of Automotive Industries contracted from time to time. (FCAI) Voluntary Code of Practice for Motor • advertising of cars under the FCAI Funded through a levy paid by Australian Vehicle Advertising Voluntary Code of Practice for Motor Vehicle Advertising advertisers, this proven system of advertising • Australian Food and Grocery Council self­­­‑regulation has operated since 1998 following Responsible Children’s Marketing Initiative of An Independent Review process continues to extensive consultation within the industry and the Australian Food and Beverage Industry provide the community and advertisers a channel with government and consumer representatives. • Australian Food and Grocery Council Quick through which they can appeal decisions made Service Restaurant Initiative for Responsible by the Advertising Standards Board. Established Advertising and Marketing to Children in 2008 to consider consumer and advertiser disagreement with Board determinations, the process is reviewed regularly with a view to maintaining and leading international best practice in delivery of the advertising self-regulation system in Australia. Competitor claims between advertisers in relation to truth, accuracy and legality of particular advertisements are considered on a user-pays basis by the Advertising Claims Board. Advertising Standards Bureau 2 Strategic intent Our purpose We exist so that the community, industry and government have confidence in, and respect the advertising self-regulatory system and are assured that the general standards of advertising are in line with community values. Our values • Transparency in decision making. • Accountability to advertisers and the community. • Responsive to complaints. • Independent – diverse Board membership making decisions without being influenced by vested interests and stakeholders. Our vision The Advertising Standards Bureau (ASB) is the foremost authority in Australia for adjudication of complaints about advertising and marketing communications. Review of Operations 2013 3 The The The Advertising Advertising Advertising Standards Standards Claims Board Bureau Board The Advertising Standards Board determines The ASB administers the advertising The ACB resolves complaints between public complaints about individual self-regulation system, accepting complaints competing advertisers, through a panel of advertisements, through a panel of public about advertisements for determination by 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 code Automotive Industries is responsible for the development for the Responsible Children’s for alcohol advertising self responsible for the FCAI of the AANA Advertiser Codes Marketing Initiative of the Food regulation by the ABAC Voluntary Code of Practice which are administered by and Beverage Industry and Complaints Panel. All for Motor Vehicle Advertising the ASB. 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. Advertising Standards Bureau 4 What the levy is used for All levy monies are applied exclusively to the maintenance of the self-regulation system and are used to finance activities such as: Funding of self‑regulation • general ASB administration and operation of the self-regulation system, including maintenance of complaints management • recruitment of Advertising Standards Board members, and attendance of 20 Board members from diverse geographical Who funds the How levy is collected backgrounds at regular meetings self-regulation system? • Advertising Standards Bureau meetings The levy is collected mainly through media and teleconferences with industry and buying agencies but also directly from advertisers Responsible advertisers assist in maintaining the government as appropriate throughout and advertising agencies that buy their own self-regulation system’s viability and support its the year administration by agreeing to a levy being applied media space. to their advertising spend. Since the establishment • research to assist Advertising Standards of the advertising self-regulation system in The levy is remitted quarterly through the Board members and the community to Australia, the levy has been set at 0.035 per cent, Australian Advertising Standards Council understand self-regulation and specific just $3.50 per $10,000 of gross media expenditure. (AASC), the funding body of advertising self- Code related issues, including research into regulation. The AASC holds the industry funds in community standards and levels of awareness During the first half of 2013, a significant amount an account which is drawn upon to pay the costs of the ASB involved in administering and operating the self- of work was directed into reviewing and assessing • ASB contribution to AANA Code reviews. the levy collection and remittance framework regulatory system. to address gaps in the system. following this review the ASB sought and received key industry Management of the funds is outsourced, the Confidentiality of levy collected stakeholder support for an increase of the levy financial accounts are prepared by chartered rate. The levy rate had remained unchanged since accountants and audited by an independent The amount of levy collected from individual 1997 despite a significant increase in the number audit firm. advertisers is kept confidential from the Board and of codes, complaints, cases and media touch points Directors of both the ASB and the AASC. This between 1997 and 2013. The self-regulation levy ensures appropriate commercial confidentiality will increase to 0.05% ($500 per $1m of media about the expenditures of individual advertisers on buying) from 1 April 2014. particular products and services. Funding of the Advertising Standards Bureau (ASB) and its secretariat support of the Advertising Standards Board and Advertising Claims Board is provided through the voluntary levy - the ASB receives no government funding. The levy is paid to and administered by the Australian Advertising Standards Council (AASC). Review of Operations 2013 5 Snapshot 2013 complaint snapshot Number of complaints received 2773 Number of complaints made about matters within ASB jurisdiction 1503 Number of complaints made about matters outside ASB jurisdiction 1078 Number of complaints about ads previously considered by the Board 520 Number of complaints about ads already withdrawn 17 Number of complaints assessed as consistently dismissed complaints 170 Number of complaints unassessed at year end 22 2013 breach or not snapshot Number of ads the Board found consistent with Code and Initiatives 348 Number of complaints about ads that did not breach Code or Initiatives 1123 Number of ads the Board found breached a Code or Initiatives 61 Number of complaints about ads that were found to breach the code 225 2013 ad snapshot Number of ads complained about 440 Number of cases created but were not put forward for consideration by the Board for variety of reasons