Annual Report 2006 2,421 ads changed or withdrawn following ASA action 22,429 Total number of complaints

Contents Introduction by the Chairman 02 12,842 The ASA works to keep advertising Review of the year 04 Top 10 most complained about ads 08 ads complained about standards high. Here, we report Complaint statistics 10 Our people 14 on our activity in 2006 – tackling ASA compliance 18 Effective in Europe 19 the challenges posed by food, Independent Reviewer 20 CAP Chairman’s introduction 22 9 days alcohol and gambling advertising, CAP Review of the year 24 Advertising Advisory Committee 28 Average working days to resolve all whilst resolving complaints about Financial report 30 complaints. 87% were resolved within the Our standards of service 32 12 day target. We aim to achieve 80% more ads than ever before.

Special feature You can read about the most The changing face of advertising 16 56 days complained about ads of the Average time taken on investigations. year and our work behind the 73% were completed within the 60 day target. We aim to achieve 80% scenes, upholding and enforcing the advertising codes. A special feature narrates how the ASA 1,080,496 has developed alongside the visitors to ASA website industry it regulates, and explores the changing face of advertising 62% past and present. overall customer satisfaction for non- broadcast complaints 60% overall customer satisfaction for broadcast complaints 95% satisfaction rating for Copy Advice enquirers ASA Annual Report 2006 01 Chairman’s introduction

“We need to be ready to address the differing concerns of consumers and the changing face of the industry we regulate.”

I am confident that my successor Lord Need for clarity Smith of Finsbury, will be taking over an At ISBA’s conference, I reminded the organisation that is in good heart. It is industry of the need to protect this freedom an organisation that provides effective as the face of advertising changes year recourse for consumer complainants; has by year. As is reported on page 12, the increasing public recognition and works Internet is now the second most alongside an industry that accepts and complained about advertising format – abides by the legitimate restraints of the a rise unmatched in any other media. advertising codes. Yet the boundaries of regulatory responsibility online are still unclear. Changing concerns Consumers expect the same levels of Yet our effectiveness should not be honesty and truthfulness online as they do measured merely by the number of in more traditional advertising media. The complaints that we receive, or our speed of ASA does not seek to control the Internet, response. We need to be ready to address but nevertheless, I welcome the initiative the differing concerns of consumers and the begun by Baroness Buscombe at the When I arrived at the Advertising Standards changing face of the industry we regulate. Advertising Association to provide certainty Authority (ASA) over six years ago, the most As the inner section of this Report shows, in this area, where the need for social common area of complaint was the media from regulating just seven different types of responsibility in advertising is paramount. we didn’t regulate – television advertising. advertising at our inception 45 years ago, Now, as I look ahead to the final months of we are now responsible for over 30 different In 2006, we marked the departure of my tenure as Chairman of the ASA, I am advertising media. As you will read two long standing and distinguished pleased to report that the organisation so elsewhere in this Report, public policy members of Council – Professor Martyn many people thought existed then certainly concerns have led to new restrictions on Percy and David McNair. Both had served does now! advertising for alcohol, food and gambling. on Council for the maximum two three-year terms. In their place, we were pleased to The future of the ASA’s one-stop shop for all In March 2006, I was honoured to be invited welcome Professor Gareth Jones, Chair advertising complaints has been publicly to address the annual conference of the of Christian Theology at Christ Church confirmed by Ofcom’s Chief Executive Incorporated Society of British Advertisers, University College Canterbury, and Ed Richards. As we marked the end of the ISBA. It is not an invitation the ASA Elizabeth Fagan, Managing Director of probationary period, a brief tally of our first Chairman accepts lightly, for as a self- Boots Opticians. Together with their two years of business revealed a total of regulatory body we must not forget that the colleagues, they have the challenging task 48,665 complaints about 24,807 co-operation from the industry we regulate of delivering cogent decisions against a advertisements. Independent research is not required by statute, but voluntarily demanding caseload. Their role would not amongst complainants, detailed on page given. Of course, advertisers recognise the be possible without the hard work of the 32 of this Report, shows high levels of benefits self-regulation brings to their executive, who receive, respond to and, satisfaction with the ASA’s levels of service, customers and themselves. Self-regulation where necessary, investigate complaints. speed of action and communication. offers a free, fast and practical approach My thanks go to all the staff, past and to redressing consumer complaints. present for their support and expertise. It secures advertisers’ freedom to advertise I wish them well for the future. responsibly and maintains the integrity of their marketing. Lord Borrie QC ASA Chairman

02 Chairman’s introduction ASA Annual Report 2006 03 Review of the year

01 02 03

01 02 03 End of Probation Calling time Views from all sides The future of the ASA’s one-stop shop for In January 2006, the first upheld In November, representatives of consumer all advertising complaints was publicly adjudication on an alcohol ad under the groups, faith communities and local confirmed by Ofcom CEO Ed Richards, new alcohol rules was published. The ASA charities had the opportunity to question speaking after the completion of the two- upheld complaints about two Young’s Bitter ASA Chairman Lord Borrie and members year probationary period. Addressing an posters, on the grounds that they linked of staff at the ASA’s Annual Consumer audience of advertisers and agency heads alcohol with seduction and social success. Conference in Bristol. Delegates of all ages he said: “Now that the two-year probation The ads were part of a campaign launched were able to give their own feedback on period for the co-regulatory arrangements under the old alcohol rules which continued advertising content and discuss issues between Ofcom, ASA and BCAP is over, we under the new ones. The new rules also raised by complaints at first hand. The look forward to continuing this effective prohibit ads from linking alcohol with debate ranged from alcohol advertising relationship. Co-regulation in advertising popularity or confidence, anti-social to advertising aimed at children and how has led the way and has been successful. behaviour, solitary drinking, improved advertisements can cause offence. During This is because private interests are aligned physical performance, strength, lively workshop sessions, delegates were to public goals. There is a common interest irresponsible or under-age drinking asked to make their own judgements on between advertisers, broadcasters and and therapeutic qualities. advertisements and complaints that had regulators in achieving a trusted and come before the ASA Council during the successful system.” year. A full report of the conference can be found at www.asa.org.uk.

Pictured above, left to right, CAP Chairman Andrew Brown, ASA Chairman Lord Borrie and Ofcom’s Kip Meek, marking the second anniversary of the one-stop shop.

04 Review of the year ASA Annual Report 2006 05 04 05 06 07 08 09 10 11

04 06/07 09 10 11 Student Awards Jones and Fagan join Council Next ASA Chairman Unwelcome splash for Pool.com Future-proofing ad freedom School, college and university students Two new members were appointed to the Former Secretary of State for Culture, Ads for the online betting site Pool.com, The advertising industry should future-proof were tested on their understanding of the ASA Council, the adjudicating body for Media and Sport, the Rt Hon Lord Smith which stated: “Why wait ‘til 18? Bet at 16” self-regulation for the digital age – in its own advertising Codes with the launch of a new advertising complaints. Theology Professor of Finsbury (pictured), will be the next ASA were withdrawn pending investigation interests. This was the challenge presented ASA awards scheme for young people. Gareth Jones and Elizabeth Fagan, Chairman, succeeding Lord Borrie QC who following concern that they could to UK advertisers by ASA Chairman Lord The task of devising a multi-media ad Managing Director of Boots Opticians, retires from the ASA at the end of June. encourage young people to gamble. The Borrie at ISBA’s Annual Conference in campaign for a soft drink that complied joined as lay and industry members Lord Smith, who was appointed by Asbof advertising code prohibits gambling ads March 2006. Warning the audience that with the Codes was taken up by students respectively. Appointed by ASA Chairman and Basbof, the two bodies that finance the being directed at people under 18 years consumers have the same expectations of from schools and colleges across the UK. Lord Borrie, they replaced Martyn Percy self-regulatory system, has held a wide of age. The ASA’s prompt action was honesty and truthfulness of ads and brands Winners Emma Ann James from Amman and David McNair who had both completed variety of senior appointments in public welcomed by the Secretary of State, in new media as they do in conventional Valley School and Ross Cockton from the maximum two three-year terms on service and the arts and creative industries. Tessa Jowell, who called the ads “utterly media, Lord Borrie suggested that the University of Sunderland both received Council. Biographies of all ASA Council The appointment was made following reprehensible”. The subsequent advertisers should extend social cash awards. members can be read at www.asa.org.uk. public advertisement and by a Nolan-style investigation upheld complaints that responsibility across all advertising formats. process. Contrary to some press reports, the ads were socially irresponsible. Self-regulation, he emphasised, must be 05 08 the ASA Chairmanship is not a government as effective in new media as in old, in order Another bad ad Spotlight on Big Brother appointment. to secure future advertising freedom. Possibly the worst radio ads ever came The Big Brother house came under scrutiny Lord Borrie’s speech can be read in full at under scrutiny during the year, but this time in October, but not because of the antics Welcoming the appointment, Lord Borrie www.asa.org.uk. they were part of the ASA’s own advertising of the housemates. Rather, the ASA spoke of Chris Smith’s distinguished career campaign. The three radio commercials adjudicated on complaints about the TV in public service and the arts and said that echoed the theme of the ASA’s recent programme’s “Golden Ticket” promotion, his successor would be a fair minded and press and poster campaign which carried run in conjunction with Nestlé. Posters, effective Chairman. the strapline: “Ok, so we’re better at national press ads and point of sale material removing bad ads than making good ones.” announced that anyone finding a Golden Featuring actor Michael Fenton Stephens, Ticket in a Kit Kat chocolate bar could have the comical ads were deliberately the chance to take part in a Prize Draw and unprofessional – featuring poor editing, become a Big Brother housemate. Amidst fluffs and mispronunciations. The radio extensive tabloid speculation that the Prize campaign was run in airtime donated by Draw had been fixed, the ASA ruled that the commercial broadcasters, and played Draw had been conducted according to the over 8,500 times during the year. laws of chance, but that an independent “Self-regulation must be observer should have been present throughout the process. A subsequent ASA as effective in new media investigation into the terms and conditions of the promotion concluded that some key as in old, in order to secure details had not been made available on all marketing material. future advertising freedom.”

06 Review of the year ASA Annual Report 2006 07 Top 10 most complained

06. French Connection about ads 04. Motorola Ltd/ 05. Carphone Warehouse 127 complaints Dolce & Gabbana 145 complaints French Connection’s television 07. Channel 5 Broadcasting 160 complaints Complaints were received from ad featured a martial-arts 99 complaints Complainants protested that competitors and members of contest between two women, Channel 5’s strikingly simple poster this national press ad for a the public about the lack of symbolising the competition campaign was deemed by a mobile phone was offensive and clarity and the potentially between fashion and style, number of people to be racist irresponsible, condoning knife- misleading statements in this which concluded with a kiss. towards Americans and socially related violence and glamorising television and national press irresponsible in that it could incite sexual violence. campaign. An investigation was deemed violence. unjustified, with the ASA Newspapers publishing the ad Complaints were upheld on deciding that the fight was The advertisers protested that agreed with the defence that it three out of the four issues, highly-stylised and, in context, such accusations were clearly only was highly stylised, clearly a pun most notably on its claim to be did not reflect criminal assault. in relation to the first stage of their to coincide with the tagline ‘The ‘free forever’. The ASA decided The kiss was also found not campaign and that the purpose of Cutting Edge of Technology’ the ad was misleading and the to be in breach of the code. the Five US channel was to and that it did not glamorise availability of the service was Concerns that it should not celebrate American films and violence. The ASA decided that insufficiently explained. be seen by children were also television. The ASA judged that most readers of the newspapers Complaints upheld unjustified because of the the poster was unlikely to cause would appreciate the intention post-watershed scheduling serious or widespread offence or of the ad. restriction. to incite violence. Complaints not upheld Investigation not justified Complaints not upheld 01. Gay Police Association 553 complaints Appearing in the national press, this ad pictured a Bible – in order to highlight a religious motivation behind homophobic incidents. Attracting complaints from such 02. HM Revenue & Customs bodies as Christian Watch and 271 complaints the Evangelical Alliance, the ad A national press ad depicted was perceived as offensive to what appeared to be a self- Christians and discriminatory employed plumber evading tax in tone. by hiding under the kitchen sink. The ad attracted complaints Three out of the five issues from a number of organisations raised were upheld, with the and members of the public who ad judged to be offensive, considered that the ad implied misleading in its suggestion self-employed people – that all incidents involved plumbers in particular – were physical injury, and in its tax-evaders and was thus both 08. Kellogg Company statistical claims, which were misleading and offensive. 96 complaints 09. National Federation 10. Dolce & Gabbana never proved to the ASA. 03. Dolce & Gabbana Objections to a Kellogg’s of Cypriots 89 complaints Complaints upheld HM Revenue & Customs 166 complaints television ad featuring a man 93 complaints Complaints into D&G’s apologised for any offence D&G’s national press ad riding a dog, claimed that it This regional press advertising television ad, which showed caused and said they had attracted complaints from portrayed cruelty to animals and feature drew complaints from a a brief kiss between two males, amended the ad in light of the those concerned about its would encourage viewers to try human rights organisation, ranged from protestations that complaints. The ASA’s glamorisation of knives and the same stunt at home. concerned it was offensive to the it was unsuitable for children investigation concluded most violence. One of the ads had Turkish community and likely to to objections that ads showing people would not infer from the appeared opposite a news In their response, backed by the incite racial hatred. two men kissing were ad that all self-employed people article about a knife crime. Broadcasting Advertising unacceptable at any time. were tax-evaders. Clearance Centre (BACC), The NFC rejected the accusation Complaints not upheld Despite D&G’s protestation Kelloggs said that the ad was that the image showing Cyprus was The BACC had approved the that the ads’ highly-stylised clearly surreal in nature, no dog dripping with blood and protested ad on the condition it was not approach was inspired by was actually ridden during that it denoted the line of division in shown around programmes well-known paintings of the filming and that the already- the country. They said that ‘Do not aimed specifically at children Napoleonic period, the ASA imposed scheduling restriction forget’ referred to all who had and believed the ad did not suffered including Turkish people. judged the advertisements would prevent children from require further restriction. The Complaints were not upheld except to be socially irresponsible copying the ad. The ad also ASA agreed with the BACC. for the challenge that it was and offensive. featured a ‘Don’t try this with insufficiently clear that the ad Complaints not upheld Complaints upheld your dog at home’ warning. was advertising material. Complaints not upheld Complaints upheld

08 Top 10 most complained about ads ASA Annual Report 2006 09 Non-broadcast Complaints Ads Broadcast Complaints Ads

Work brought forward 668 512 Work brought forward 343 161 Complaint New work received in 2006 13,448 10,473 New work received in 2006 8,981 2,369 Work resolved in year 13,139 10,334 Work resolved in year 8,820 2,251 Work outstanding at year end 977 651 Work outstanding at year end 504 279 statistics No investigation 3,023 3,008 No investigation 6,071 1,728 No investigation after preliminary work 5,831 5,625 No investigation after preliminary work 800 207 No investigation after Council decision 649 234 No investigation after Council decision 458 44

Total not investigated 9,503 8,867 Total not investigated 7,329 1,979 Informal investigation 1,021 945 Informal investigation 91 63 Formal investigation of which 2,615 522 Formal investigation of which 1,400 209 Upheld 1,446 364 Upheld 471 93 Not upheld 1,144 135 Not upheld 907 107 Other (e.g. withdrawn) 25 23 Other (e.g. withdrawn) 22 9

Total investigated 3,636 1,467 Total investigated 1,491 272

Complaints A total of 21,959 complaints about ads In 2006, just 93 broadcast commercials In 2006, a total of 2,421 advertisements were resolved by the ASA during 2006. were subject to a formal ‘upheld’ ruling; were changed or withdrawn following action Of these, 16,832 complaints were not complaints about 63 commercials were by the Advertising Standards Authority. investigated, while 1,112 were subject resolved following an informal investigation, Where possible, the ASA aims to resolve to an informal investigation, and 4,015 and questions raised over a further 19 ads complaints through discussion and were the subject of a formal investigation. were resolved directly following dialogue dialogue, rather than formal investigation. with the advertiser. Last year, most problem ads were amended For the first time since the launch of the or withdrawn in this way. one-stop shop in 2004, there were more Reason for complaint complaints about non-broadcast ads As always, the biggest cause of complaint Complaints and investigations than broadcast commercials, with non- about ads in 2006 was that they were Fewer complaints were received than in broadcast complaints making up 60% untruthful or dishonest. A total of 7,215 ads 2005. In total, 22,429 complaints were of the total. Most of the 8,981 broadcast generated complaints that consumers had received, a 14.5% fall in the overall number complaints received related to TV been misled. There were 4,261 objections of objections to ads. But the drop in advertising, with just 226 complaints to ads on the grounds of offensiveness and complaints did not mean a lighter caseload resolved about radio ads. 1,129 ads were accused of being harmful. for the ASA as the total of advertisements Nearly 90% of objections to ads came from complained about increased by 8.2% to a Resolution members of the public; the remaining record 12,842. Of the 2,246 non-broadcast advertisements complaints came from industry. Industry changed or withdrawn during the year, complainants were more likely to object to This apparent anomaly arises because 364 were subject to a formal ‘upheld’ broadcast ads than non-broadcast: 12% of fewer advertisements attracted large adjudication by the ASA Council. complaints were for TV and radio ads numbers of complaints. In comparison with Complaints about 945 ads were resolved compared with 9% for non-broadcast ads. the 1,710 complaints received about KFC’s informally following dialogue with the 2005 ‘Call Centre’ TV ad, the most advertiser and a further 549 problem ads complained about ad of 2006 attracted 553 were amended following ASA intervention. objections, i.e. only one third as many (see Compliance activity led to changes to 388 page 08). Overall, the average number of advertisements, either as a result of routine complaints per ad fell from 2.21 to 1.75. monitoring or action against advertisers who had failed to abide by an ASA ruling.

The work of two pre-clearance centres – the Broadcast Advertising Clearance Centre and the Radio Advertising Clearance Centre – means that fewer TV and radio ads have to be changed or withdrawn.

10 Complaint statistics ASA Annual Report 2006 11 Complaint Complaint statistics statistics Non-broadcast Broadcast

Non-broadcast advertising Complaints by media Complaints by sector Broadcast advertising TV continued to be the dominant media The number of non-broadcast complaints The most complained about non-broadcast More complaints were received about Complaints about television and radio ads compared to radio, accounting for 97.4% received during the year increased slightly media was the national press with 3,370 advertising by the leisure industry than fell by a third in comparison with 2005 with of all broadcast complaints resolved during to 13,448, a rise of 5.7% compared with complaints. Second most complained any other sector. Although the number of 8,981 objections received relating to 2,369 the year. In total, radio advertisements 2005. There was a larger increase in the about was the Internet, with 2,066 complaints about leisure advertising fell ads. Of the complaints resolved during the attracted just 226 complaints, a fall of number of ads attracting those complaints, complaints, representing a 32.7% by a third in comparison with 2005, it still calendar year, 83.1% were dealt with by the 68.4% in comparison with the complaints with 10,473 non-broadcast ads complained year-on-year rise. Five years ago, accounted for nearly one in five of all non- ASA’s Complaints teams without the need received about radio commercials in 2005. about, a 9.3% increase year-on-year. Of the in 2001, the Internet ranked as the eighth broadcast complaints to the ASA. As in for an investigation. Just 272 ads needed Overall, offensiveness was the prime non-broadcast complaints resolved during most complained about of all non- 2005, computers and telecoms was the formal investigation by the ASA with 93 reason for complaining about broadcast the calendar year, nearly three-quarters broadcast media. second most complained about sector being changed or withdrawn following an commercials with 4,222 complaints were dealt with directly by the ASA’s and an unexpected rise in the number of ‘upheld’ conclusion. while 2,699 objections were about Complaints team, without the need for an In 2006, direct mail and posters were the complaints about ads by non-commercial misleadingness. The most complained investigation. Complaints outside of the third and fourth most complained about organisations brought this category into about broadcast advertisement was ASA’s remit may be referred on to other advertising media, although year-on-year, third place. However, of the 1,723 French Connection’s ‘Fight Kiss’ with organisations to deal with and many complaints about them have fallen by complaints about non-commercial 127 complaints. objections can be resolved directly by the 30.6% and 35.5% respectively. In total, the organisations, 917 related to just three ads Complaints teams through dialogue with top four media generated nearly 65% of all – The Gay Police Association, HM Revenue the advertiser or agency. non-broadcast complaints. & Customs and National Federation of Cypriots (see pages 08-09). Together with Where more in-depth action is required, objections about holidays and travel complaints are referred on to the ASA’s advertising, these top categories accounted Investigations teams. In total, 3,636 for over half of all non-broadcast complaints about 1,467 non-broadcast ads complaints. were investigated in 2006, a fall of 7.2% compared with 2005.

Non-broadcast – reason for complaint Complaints resolved by media Complaints resolved by sector Broadcast – reason for complaint Broadcast complaints – resolved by media Complaints resolved by sector June – Dec 2006* Harmful Non-broadcast 2005 2006 Non-broadcast 2005 2006 Harmful TV 775 1,389 8,594 Broadcast 2006 This category was not recorded in 2005 National press 2,302 3,370 Leisure 3,822 2,548 4,270 12,807 Internet 1,557 2,066 Computers and Leisure 684 Misleading Direct mail 2,293 1,592 telecommunications 1,280 1,752 Misleading Radio Food and drink 611 6,220 Poster 2,236 1,443 Non-commercial 599 1,723 2,699 226 Health and beauty 515 2,299 Regional press 778 950 Holidays and travel 1,191 1,239 2,971 715 Computers and Magazine 946 873 Health and beauty 1,044 871 telecommunications 369 Offensive Leaflet 620 555 Publishing 822 702 Offensive Financial 364 3,642 Transport 82 518 Financial 585 663 4,222 Retail 286 3,394 Brochure 272 385 Business 378 427 7,201 Motoring 249 E-mail 313 276 Retail 625 534 Non-commercial 245 No Issue Unknown 232 262 Household 411 523 No Issue Household 200 628 Point of sale 182 225 Motoring 511 521 7 Holidays and travel 155 1,683 Electronic 19 188 Food and drink 282 406 22 Publishing 114 Catalogue 152 150 Property 210 210 Alcohol 43 Miscellaneous Insert 140 149 Clothing 178 221 Miscellaneous Business 37 4,753 Packaging 152 147 Employment 164 186 1,089 Clothing 36 10,541 Other 108 147 Utilities 221 181 1,486 Utilities 27 Directory 124 128 Alcohol 241 138 Education 16 Press General 158 122 Education 63 86 Employment 6 Circular 91 122 Electrical appliances 88 56 Electrical appliances 5 Mailing 96 117 Industrial and Property 4 Cinema 120 114 engineering 35 56 Industrial and engineering 3 Fascimile 31 53 Agricultural 57 45 Agricultural 1 Text message 97 41 Tobacco 7 7 Tobacco 1 Ambient 33 10 Unknown 33 50 Unknown 77 Video 1 9 Not Specified 4 5 No Category 82 Voicemail 5 3 2006 Computer games 0 1 *The introduction of a new database in June 2006 made 2005 Viewdata 0 1 it possible to record this information for the first time.

12 Complaint statistics ASA Annual Report 2006 13 Our Non-broadcast council people Broadcast council

ASA Council 01 Members

01 12 Lord Borrie QC Sunil Gadhia Chairman Chief Executive Officer, Stephenson Harwood 02 Mike Ironside 13 Partner, Media Liaisons Neil Watts Headteacher, Northgate High 02 03 04 05 06 03 School Elizabeth Fagan The ASA’s Council is the ‘jury’ that Managing Director, Boots 14 decides if advertisements breach the Opticians Diana Whitworth advertising codes. The Council is Co-director, Grandparents Plus appointed by the Chairman of the ASA 04 and two-thirds of the members are Dan O’Donoghue 15 independent of the advertising industry. Worldwide Strategic Planning Christine Farnish The minority Industry members are Director, Publicis Ltd Public Policy Director, Barclays pictured opposite in the top row. Two 07 08 09 10 11 panels operate in parallel within the one 05 16 Council, judging broadcast and non- Susan Murray Alison Goodman broadcast ads separately. Non-executive Director of Fundraising Manager, Terrence Enterprise Inns plc, SSL Higgins Trust Council members are appointed for a International plc, Imperial maximum of two three-year terms and Tobacco Group plc, Morrisons receive an honorarium of £15,000 p.a. Supermarkets plc A Register of Members’ Interests may be inspected on application to the 06 Senior Company Secretary. Nigel Walmsley Management 12 13 14 15 16 Chairman, Broadcasters’ Audience Research Board 17 Christopher Graham 07 Director General Donald Trelford Visiting Professor, University of 18 Sheffield Alan Chant Director of Development 08 Colin Philpott 19 Director, National Media Claire Forbes Museum Director of Communications

09 20 Gareth Jones Phil Griffiths Professor of Christian Theology, Director of Finance Canterbury Christ Church and Support Services University 21 10 Guy Parker 17 18 19 Baroness Coussins Director of Complaints Independent consultant on and Investigations corporate responsibility Former CEO, Portman Group 22 Roger Wisbey 11 Director of Advertising Policy Chitra Bharucha and Practice and CAP Former Haematologist Secretary

20 21 22

14 Our people ASA Annual Report 2006 15 Keep on changing

In this special feature, we take a look at the changing face of advertising and how regulation has evolved with it.

16 The changing face of advertising It isn’t just the change in advertising that has been remarkable over recent decades, but where and how that advertising appears.

Technology, ingenuity and the power of creativity mean that almost any surface, service, device or screen is now an advertising medium.

In this short supplement, we show how the ASA has evolved with the advertising landscape – from press, radio and TV to spam, texts and talking bus stops. 1 “Lose 1 /2 stone in 5 weeks! Proved by a Harley Street Doctor.”01

If the ASA hadn’t been formed in the baldness treatments,05 vitamins, early 1960s, it would only have been cigarettes, beauty treatments, gin, a matter of time before action was health food drinks and even sewing taken – by government if not by the machines. advertising industry itself. In 1965, cigarette advertising on It was still an era in which women television was stubbed out and, a year “could find love again” provided they later, the advertising of pregnancy bought a particular pimple cream.02 testing kits was allowed for the first And when “two packs a day!”03 time. The ASA objected to inertia celebrities smoked the brand selling (where customers would be approved by “a medical specialist”. sent goods unless they said “No”), and told publications not to carry It was also just six years after the ads for companies that used this first grainy, jerky ad for Gibbs SR technique. It also warned about toothpaste appeared on ITV. advertisers switch-selling to Advertising literacy was low, dubious consumers, having first advertised claims in print media went largely products that they had little intention unchallenged and the ASA set about of supplying or even demonstrating. introducing standards to make sure advertising was legal, decent, honest Admittedly, by the end of the decade, and truthful. large-chested barmaids in ads still looked on admiringly as pubgoers The first advertising Code was drawn downed their keg bitter. Cigarettes up in 1961 and in 1962 the ASA was were still the choice of steel-jawed born. Its first report focused on the airline pilots, cowboys and movie advertising of ‘X’ certificate (18) films, stars. But there was a growing and lapses of decency and concerns acknowledgement that a respected over frightening children. This led to advertising industry that complied discussions with the Kinematograph with common standards was good for Renters’ Society. Other early problem clients, agencies and the public alike. areas included slimming diets,04 Taste, honesty, sensibilities.

“Sex, depravity, pornography and By the early 1980s, sensibilities in Independent and effective general sleaziness” exercised the ASA advertising were proving as important A new levy on advertising space in a report in the early 1970s. The as honesty and truth. Research costs was key to securing the ASA’s salacious advertising for certain adult among women showed a dislike for independence and effectiveness for films was still a particular concern. sexual suggestiveness, as well as the decades to come. stereotypes. A new rule was created As new marketing models and governing violence and anti-social techniques mushroomed in the UK, behaviour,07 after the tragic shootings so did complaints. Some mail order at Hungerford in 1987 prompted a services drew criticism for non- review of some 250,000 ads. delivered goods and elusive refunds. The selling of ‘instant antiques’ Sales promotion brought new flourished, with the ASA warning challenges, as ‘treasure hunts’08 advertisers not to suggest that their led to entrants digging up the limited-edition plates, coins and countryside and damaging priceless figurines would rise in value. It also archaeological sites. Political acted, with the arrival of VAT, to stop advertising came to the fore,with retailers making prices look lower creative, high impact posters than they were by quoting them becoming central to election without the tax. campaigning09. The turn of the decade also saw an increase in green In 1973, the ASA made its rulings awareness10 and with it an entirely public for the first time, although only new task for the ASA. persistent offenders were actually named and shamed. Two years later, the launch of the Advertising Standards Board of Finance (Asbof) and a new levy on advertising space costs was key to securing the ASA’s independence and effectiveness for the decades to come. New Codes followed for alcohol06, pre-vetting was now required for tobacco and advertisers were expressly required to show good judgement in marketing to children. Up close and personal

By the 1990s, the ASA was also Its ‘in-your-face’ tone was mirrored by responsible for another burgeoning many shock-tactic charity ads of the medium: direct marketing (DM), time13. The ASA had to balance the including list and database need of charities to compete for funds management. with its rules prohibiting “serious or widespread offence” In the wrong hands, DM could provoke intense annoyance as it was The newspaper market was also uninvited and difficult to stop, and intensely competitive, and the 1990s sometimes seemed to arrive by saw numerous free gift promotions the lorry load. This included mail splashed across their front pages14. masquerading as coming from However, they risked confusing someone else, as attempted by readers about start dates, offer telecoms provider Mercury11 when it conditions, or the need for tokens ‘borrowed’ BT’s typeface and look. and premium rate calls. Rights and responsibilities Shock-tactic charity ads meant In 1991, complaints to the ASA had It wasn’t long before the Internet the ASA had to balance the need topped 10,000 in a year for the first started being used as an advertising of charities to compete for funds time. These included, in 1995, the medium and in 1995, the ASA with its rules prohibiting “serious most complained about piece of print assumed responsibility for banner or widespread offence”. ever: a campaign leaflet12 with an and pop-up ads. It has since received image of the Pope in a hard hat to over 6,500 complaints about promote the use of condoms. (The advertising online. complaint was upheld on the grounds of causing widespread religious offence.) Offside to online Ads masquerading as official correspondence, medical test results and even wheel clamps generated complaints.

Tricks to clicks

Perhaps it was the legacy of the 1990s’ Ambient media was the new trend as recession – or just that creative teams everything from till receipts to petrol were getting more inventive – but by pumps and scaffolding became the turn of the millennium the ASA was vehicles for advertising. receiving many complaints about non- traditional media. In particular, ads As technology developed and spread, pretending to be official notices such so did new reasons to complain: as parking tickets, government forms Internet banners17 and pop-ups; and even medical test results. commercial spam; Bluetooth posters, indiscriminately sending ads to mobile In Glasgow, some people came back phones; and a talking bus stop poster, to their cars believing momentarily that inviting you to “press for lift”18 on an they had been clamped;15 in fact, the underwear model’s bra, triggering a distinctive yellow ‘clamp’ turned out to voice message. be cardboard, with a message from a local gym. All fell under the ASA’s remit, yet it wasn’t until 2004 that we were able Similarly, in 2001, the first complaint to add TV and radio ads to our upheld against an SMS message responsibilities. Together with press, concerned a text pretending to be posters and the Internet (which is an official ‘order’ from the Army.16 now the second most complained- Complaints about text messages about medium) the ASA became a would grow by a factor of ten in the one-stop shop for anyone wanting space of a single year. to draw attention to a possible breach of the Codes. 01 Harley Laboratories c.1960 02 Clear-X Products c.1950 03 Liggett & Myers Tobacco Co 1953

04 Formula 21 c.1960 05 Arthur J. Pye Treatments 1968 06 Haig Whisky c.1970

07 Early Learning Centre 1990 08 Cadbury Ltd 1983 09 Conservative Party 1979

10 Unilever 1991 11 Mercury Communications Ltd 1996 12 British Safety Council 1995

Whatever next? 13 Respect for Animals 1997 14 Sport Newspapers Ltd 1995 15 Esporta Group Ltd 2002 So where is advertising heading next? Now an industry ‘future-proofing’ Wherever that is, the ASA will have to project is devising ways of ensuring be prepared “to boldly go” to ensure that ad self-regulation remains that advertisements remain legal, effective for the digital age. decent, honest and truthful – and socially responsible too. In this, the industry is doing what it has done consistently since 1961, So far, the ASA has not sought to adapting to changes in advertising in apply the Code to claims on order to protect the consumer from advertisers’ own websites. harm or offence, promote fair competition and preserve freedom to advertise responsibly. 16 Eidos Interactive 2001 17 Nissan Motors Co Ltd 2005 18 Pretty Polly Ltd 2002

ASA Annual Report 2006 17 ASA Effective compliance in Europe

Ensuring compliance Health and beauty The European Advertising Standards “Self-regulation has an important role to “During the year, During 2006, advertisements for phones, The advertising of health and beauty Alliance, EASA, brings together national play in a modern and efficient regulatory Internet services, betting tipsters, herbal products is one of the biggest consumer advertising self-regulatory organisations framework – provided it meets well- the Compliance potency products and smoking treatments sectors. In 2005, a number of ads had (SROs) and organisations representing defined criteria. The European came under scrutiny from the Compliance caused us concern, so we did a survey of the advertising industry in Europe. Commission recognises its potential as team ensured team. Our hard-fought work in those and the sector. We looked at 422 individual ads EASA is, on behalf of the advertising part of its Better Regulation policy,” said other sectors continued to promote and and discovered 40 Code breaches (9.5%), industry, the single authoritative voice the new EU Commissioner for consumer that 388 problem maintain a level playing field for UK most of which were in the national press on advertising self-regulation issues. protection, Bulgarian Commissioner advertisers. or magazines. Misleading claims for Maglena Kuneva. In a speech marking advertisements alternative therapies were the most 15 years ago, the ASA was a founder EASA’s fifteenth anniversary this year, Mrs Early in 2006, a new Monitoring team was common breaches, examples of which member of EASA. Today, there are self- Kuneva praised the work of the Alliance were not established. This freed the Compliance include ‘detox’ products that claim to regulatory organisations like the ASA across and its coordinated drive to establish team to concentrate on stopping known extract toxins from the body, and the 27 Member States of the EU. effective self-regulation systems across repeated.” problem advertisements from reappearing. Prescription Only Medicines (POMs). an extended EU. “I recognise and More details of the work on the Monitoring By law POMs should not be advertised The ASA was proud to host the annual welcome the efforts that EASA has made team are reported on page 27. to the general public. Consumers and meetings of EASA in London in April 2006 in recent years to strengthen self- companies alike are unaware that Botox and to offer a training programme for newly- regulatory mechanisms in various During the year, the Compliance team is a POM. The compliance rate of only established self-regulatory organisations Member States, especially the new ones. ensured that 388 problem advertisements 90.5% was disappointing and we will from Romania, the Slovak Republic, These efforts need to be continued in were not repeated. Of these, 118 were by work with the industry to improve this. Portugal, Cyprus, Hungary, Poland and the years ahead.” advertisers who had failed to provide an Lithuania. assurance of compliance at the end of an Sanctions For more information about EASA, visit ASA investigation. Sanctions were applied The most common sanction available to the In July, the European Commission’s their website at www.easa-alliance.org. on 42 occasions, 41 of those were Ad Alerts team is an Ad Alert, which is a swift way of Directorate for Health and Consumer and one was a referral to the Medicines & letting the industry know about a problem Protection (DG SANCO) released the report Healthcare Products Regulatory Agency advertiser. The Ad Alert asks the media to of a Round Table on self-regulation in the EU (MHRA). consult the CAP Copy Advice team before advertising sector. The ASA were active accepting advertisements for that members of the Round Table, alongside a Sector compliance advertiser. Last year the team issued 39 Ad range of other stakeholders. If an ASA adjudication against a single Alerts against specific advertisers and three advertiser has ramifications for the rest of further General Ad Alerts about more wide- “The goal of this series of discussions was the sector, the Compliance team contacts ranging problems, such as Herbal Potency the clearer definition of a Best Practice all relevant advertisers to advise them to Products. Of the 42 Ad Alerts issued, eight model for self-regulation” says the report. change their advertising. In the case of the were for betting tipsters, about which the mobile telephony sector, the team wrote to team now liaises with the Office of Fair “This is not so much a debate about networks and agents about the changes Trading. If Ad Alerts are not immediately self-regulation against hard law, but they needed to make when advertising effective we liaise with CAP member rather a debate about how law and self- mobile phone ‘cash back’ or redemption organisations, such as the Newspaper regulation can and should interact in offers. In the broadband/ADSL sector the Publishers Association (NPA) and Periodical modern Europe.” team wrote to the industry about qualifying Publishers Association (PPA), and their Pictured above, EASA Chairman Jean-Pierre download and upload speed claims, for trade members, to find a solution. The positive attitude to the potential Teyssier (left) and ASA Director General Christopher instance “up to 8MB download speeds”, contribution of effective self-regulation of Graham toast the success of effective ad self- because upload speeds can differ advertising was reflected in DG SANCO’s regulation across the Single Market. significantly from download speeds. subsequent communication on tackling alcohol related harm.

18 ASA compliance ASA Annual Report 2006 19 Independent Reviewer “Regrettably too many of the requests relating to non-broadcast adjudications do not meet the basic tests of eligibility set out in the Code.”

The review process reinforces the self- All broadcast cases referred back to the Non-Broadcast review cases (1999 – 2006) regulatory system. Quite rightly the Council have resulted in some change to Reviewer is not able to override the the original adjudication. 1999 2000 2001 2002 2003 2004 2005 2006 Total decisions of the ASA Council Members. But he is able to get them to think again In 2006 I received only 24 requests for a Total cases received 46 53 37 38 52 43 28 24 321 if he judges their decisions to have been review of adjudications about complaints Of which unreasonable or to have been based on against non-broadcast advertising – an Ineligible/Withdrawn 4 16 9 9 9 10 6 5 68 inadequate information about the issues average of only one every fortnight against Not to Council 22 21 17 12 24 28 14 11 149 or the result of a flaw in the investigation. an average of nearly one every week in Council 20 16 11 17 19 5 8 8 104 previous years. One-third of them merited I was appointed as the first ever reference back to the Council. And, as in Of which Independent Reviewer in 1999. Since then 2005, every one of those eight cases Reopened 000000011 I have received over 300 requests for the resulted in some change to the original Unchanged 6 10 14300024 review of non-broadcast adjudications. adjudication. Reversed 4244416126 About 20% of these have been either Wording 10 4 6 9 12 4 2 6 53 ineligible or subsequently withdrawn. Ineligible In about 40% of the cases which I actually Regrettably too many of the requests reviewed I concluded that the person relating to non-broadcast adjudications do making the request had raised issues which not meet the basic tests of eligibility set out Broadcast review cases (2005 – 2006) justified my asking the Council to think in the Code. Some are out of time. Others again. Those issues have been almost are about decisions made by the ASA 2005 2006 Total equally divided between flaws of substance Executive whereas my role relates only to and wording on the one hand and flaws of decisions made by the Council. In addition Total cases received 9615 process and information on the other. In there have been many cases where an Of which over 75% of the cases which I have sent advertiser overlooks the requirement in the Ineligible/Withdrawn 0 0 0 back to the Council the original adjudication Code for all requests to be signed by the Not to Council 8 4 12 has been either reversed or reworded. Chairman or Chief Executive. Council 1 2 3

Requests fall Finally a word about the time it takes me Of which In 2006 I received only six requests for a to deal with requests. I am glad to be able Unchanged 0 0 0 review of adjudications about complaints to report that I have been able further to Reversed 0 1 1 against broadcast advertising, even fewer improve the speed of turnaround achieved Wording 1 1 2 than in 2005. The demand for a review of in 2004 and 2005. In 2006 I achieved an adjudications on complaints against non- average of under five weeks for a review not broadcast advertising has also continued involving reference back to the Council and to decline. It would be nice to think that this under 12 weeks when the Council was reflects increasing recognition by advertisers involved. and complainants of the reasonableness of the Council’s adjudications. Sir John Caines KCB All the requests which I have received in the Independent Reviewer past two years for a review of adjudications about broadcast advertising have been eligible but only one in five merited reference back to the Council.

20 Independent Reviewer ASA Annual Report 2006 21 CAP Chairman’s introduction

From salt levels to sound levels and skin Reviewing the Codes creams to casinos, the challenges that Alongside the introduction of these new came our way in 2006 were as varied as rules, we have been reviewing the existing ever. But two public policy concerns in advertising Codes, to ensure compliance particular dominated the agenda for the with the requirements of the Unfair Committees of Advertising Practice – both Commercial Practices Directive. This broadcast and non-broadcast. While the exercise paves the way for a more wide- advertising industry, and the wider public, ranging review of all the advertising Codes, awaited the outcome of Ofcom’s beginning this year. It is expected that consultation on TV advertising of food the new, revised Codes will be published to children, we began our own public in 2009. consultation on proposed new rules for gambling advertising. In drawing up new I would like to thank the CAP and BCAP rules for the content of food and gambling Executive whose painstaking work and ads, our challenge has been to set down expertise has resulted in the introduction of regulatory standards that are both fair and balanced rules that will apply to “Our challenge is proportionate and effective; and that advertisers throughout the UK. Their advice comply with government expectations to CAP and BCAP has been invaluable. My to set regulatory and reflect and protect media plurality. thanks also go to the members of those committees and our two panels – the Sales standards that Social responsibility Promotion and Direct Response Panel and It was clear from the results of Ofcom’s the General Media Panel – whose work is are proportionate consultation that the arguments unseen by the public but helps to provide surrounding the advertising of food to the ASA with an industry perspective on and effective; children had been debated fully, providing individual advertising complaints and new useful background for CAP as we began or complex issues. comply with work on transposing the TV rules into the non-broadcast codes. The TV content A final tribute should be paid to the Government rules, drafted by BCAP, went largely advertising industry, whose financial unchanged by the consultation process support and commitment to co-regulation expectations and focus particularly on protecting younger has been instrumental in securing its future children from socially irresponsible following the end of the probationary period. and reflect and advertising messages. The first two years have created a solid foundation for the one-stop shop and I look protect media Gambling ads, when they begin to appear forward to the future with confidence. from September 2007, will not be aimed at plurality.” children, but the need for them to be socially Andrew Brown responsible is still paramount. CAP has Chairman been working alongside the Gambling Committee of Advertising Practice Commission to ensure all licensed Broadcast Committee of Advertising operators are aware of the rules and their Practice implications, just one of many sectors where we have provided training and assistance to advertisers during the year.

22 CAP Chairman’s introduction ASA Annual Report 2006 23 CAP “The role of self-regulation and Review of co-regulation has been safeguarded within the government’s plans the year for implementing the Unfair Commercial Practices Directive.”

The Committees of Advertising Practice 01 Taking the risk out of gambling ads 03 New role for GMP 05 Unfair Commercial Practices Directive (CAP) – broadcast and non-broadcast – In July 2006, CAP and BCAP launched a The General Media Panel (GMP), the panel A CAP and BCAP working group has been are responsible for the Codes that set the public consultation on proposed new rules of industry experts that guides ASA and CAP established to oversee the transposition of standards for advertising across all for regulating gambling ads. The consultation staff on the interpretation of the CAP Code, the Unfair Commercial Practices Directive media. The following pages outline was in response to the Gambling Act 2005, has been expanded to give advice on (UCPD) into the advertising Codes. The specific activity in non-broadcast and which provided an opportunity to look afresh broadcast advertising matters as well as Directive harmonises consumer protection broadcast media; here we review the at the rules for gambling ads such as those non-broadcast. That will help to ensure against unfair commercial practices across Committees’ work that crosses all media. for licensed casinos and betting. The new consistency in advertising standards across the EU and will come into force in the UK in rules proposed by CAP and BCAP are media. The Chairman of the GMP, Grant 2008. After discussions with the DTI, the role General Media Panel designed to ensure all gambling advertising Duncan from advertising agency Publicis, of self-regulation and co-regulation has been Grant Duncan (Chairman) is responsible, with particular regard to the said the newly enlarged GMP would be a rightly safeguarded within the Government’s Carol Fisher need to protect children, young persons and beneficial enhancement to the advertising plans for implementing UCPD, and the Gillian Wilmot other vulnerable persons from being harmed self-regulatory system. “It makes sense for working group is reviewing the Codes to John Laidlaw or exploited by ads that feature or promote the GMP to advise on Code interpretation assess consistency with the requirements of 01 02 Simon Rhodes gambling. Preventing links being drawn for both non-broadcast and broadcast the Directive. Andrew Melsom between gambling and crime or anti-social advertisements for the same reasons it Teresa Brookes behaviour is another feature of the rules. The makes sense for one ASA to adjudicate 06 Training for industry Caroline McDevitt rules will come into force in September 2007. on complaints about ads across broadcast CAP’s programme of training for industry Mike Moran and non-broadcast media.” continued during the year with a series of Steve O’Meara 02 Moderation for alcohol ads Advice:am seminars and breakfast briefings. Neil Watts CAP and BCAP introduced new rules on 04 Updates to the Codes ‘The Insider’s Guide to working with the ASA’ Stephen Allan health, diet and nutritional claims in alcohol The CAP and BCAP Codes can be an was the most popular seminar among Tess Alps ads during the year. The rules, which have important initial source of information advertisers and agencies and was repeated Peter Gatward been added to the TV, radio and non- on the laws that affect certain types of because of high demand for places. CAP ran Daniel Owen broadcast advertising Codes, tackle advertisements and on the legal framework two seminars on the Direct Marketing rules in concerns that health, fitness and weight in which the advertising co-regulatory and the CAP Code and visited Bristol to provide Sales Promotion and control claims are likely to mislead self-regulatory systems work. To reflect an introduction to the self-regulatory system Direct Marketing Panel consumers when used in ads for alcoholic changes in the law, CAP and BCAP made for advertisers and agencies working in the Philip Circus (Chairman) drinks. technical changes to their Codes during West of England. 03 04 Paul Whiteing 2006. These included changes to the Oliver Hickson Alcohol ads may contain factual statements financial and political rules showing the new Jean Coussins about product contents, including remit of, and the regulations that affect, the Caroline Roberts comparisons, to enable consumers to Financial Services Authority and Office of Fair Mark Dugdale make informed choices. But alcohol Trading, and setting out the respective Mark Challinor advertisements must not make health responsibilities of Ofcom, BCAP and the ASA Peter Batchelor claims, including fitness or weight control in respect of political advertising. The Codes Michael Halstead claims. The rules came into force across can be accessed in full via the CAP website all media in the summer 2006. at www.cap.org.uk.

05 06

24 CAP Review of the year ASA Annual Report 2006 25 CAP CAP Non-broadcast Broadcast Review of Review of the year the year

The Committee of Advertising Practice Copy Advice Keeping in touch The Broadcast Committee of Television advertising of food and drink Teleshopping challenge (CAP) is the industry body responsible The provision of free advice on whether A fiercely competitive market combined Advertising Practice (BCAP) is products to children Teleshopping remained the focus of BCAP’s for the non-broadcast Advertising Code. proposed advertisements comply with the with technological developments and contracted by the communications Ofcom’s ten week consultation on television monitoring work and the Monitoring team CAP writes and enforces the British Code is a key point of CAP’s service and a greater consumer knowledge led to an regulator Ofcom to write and enforce advertising of food and soft drink products continued to identify unsubstantiated Code of Advertising, Sales Promotion new marketing initiative for the Copy Advice update to the Help Note on Price Claims in the Codes that govern TV and radio to children began in March 2006. Ofcom product performance claims. The ASA and Direct Marketing. team began with the launch of a Customer Telecommunications Marketing. Although ads. The Committee comprises proposed three policy options containing Council upheld 12 teleshopping challenges. Relationship Management programme. the basic principles of the Help Note remain representatives of broadcasters licensed combinations of volume, scheduling Committee of Advertising Practice The programme, which aims to improve the same – comparisons should be clear by Ofcom, advertisers, agencies, direct restrictions and content restrictions. The Health and beauty was the biggest problem Advertising Association the targeting of CAP’s direct marketing and fair; ads targeted at consumers should marketers and interactive marketers. content restrictions were drafted by BCAP sector and accounted for over 90% of the Cinema Advertising Association and communications, is reviewing the way quote VAT-inclusive prices; footnotes and reflected a proportionate response to team’s workload. Ads challenged included Direct Marketing Association CAP communicates with its wide range of should be legible; and claims should not Broadcast Committee of the government’s requirement that the those for detox foot pads, slimming pills, Direct Selling Association industry customers – from SMEs to FTSE exaggerate the availability or extent of Advertising Practice advertising and promotion of foods high in anti-ageing pills and creams, magnetic Directory and Database Publishers 100 companies. At the end of 2006 the benefits likely to be obtained – clarification Advertising Association fat, salt or sugar (HFSS foods) to children devices, hair removal devices and food Association number of enquiries to the service had has been added about what is Broadcast Advertising Clearance Centre should be restricted. supplements purporting to aid erectile Incorporated Society of British Advertisers increased. Over 90% of written enquiries unacceptable in telecoms ads. British Sky Broadcasting Ltd dysfunction. Institute of Practitioners in Advertising were responded to within 24 hours with an Channel 4 The main elements of the proposed Institute of Sales Promotion average response time of seven hours per In particular, unqualified claims such as Direct Marketing Association content restrictions are aimed to ensure In February 2006, we referred We Deliver TV Internet Advertising Bureau written enquiry. “unlimited calls to UK landlines” should ERA UK (teleshopping) young children would not be exposed to to Ofcom for sanction for breaches of the Mail Order Traders Association not be made because they are likely to Five TV ads that: TV Code. We Deliver TV was placed in Newspaper Publishers Association AdviceOnline mislead consumers, as does describing GMTV liquidation in September 2006 and the Newspaper Society Copy Advice is available online via the individual elements of a package as “free” Incorporated Society of British Advertisers • promote poor nutritional habits or an licence was revoked shortly thereafter, Outdoor Advertising Association CAP website AdviceOnline which offers if the cost of that element is included in the Institute of Practitioners in Advertising unhealthy lifestyle in accordance with Ofcom’s normal Periodical Publishers Association a regularly updated searchable database package price. The changes to the Help ITV • promote excess consumption procedures. After revoking the licence, Proprietary Association of Great Britain of advice for non-broadcast marketing Note were explained to industry at an Radio Advertising Clearance Centre • promote the pestering of parents Ofcom discontinued its sanctions Royal Mail communications. A keyword search of over Advice:am seminar held at CAP’s offices Radio Centre • encourage the purchase of food or soft procedure. Scottish Daily Newspaper Society 350 different subjects provides detailed early in 2007. Satellite & Cable Broadcasters’ Group drinks by using licensed characters, Scottish Newspaper Publishers Association advice for marketers and links to relevant S4C celebrities or promotional offers The ASA Council upheld a fast-tracked code clauses and past ASA adjudications. Utilising help for utilities Teletext • promote consumption purely to get a challenge about an explicit advertisement Broadcast Advertising Clearance Centre The number of users of the AdviceOnline As utilities companies race to offer the Virgin Media TV promotional offer for a premium-rate sex line on Look4Love Radio Advertising Clearance Centre service increased by over 40% during cheapest prices to customers, CAP has • make unsubstantiated nutritional, health TV. When Look4Love refused to comply 2006 and the number of subscribers to updated its Help Note on Price Claims in or other claims. with the ruling, we referred the channel to Update@CAP – CAP’s quarterly online Utilities Marketing, to ensure ads are not Ofcom for sanctions. In November 2006, newsletter – also reached record levels. misleading. Although the basic principles of In November 2006, Ofcom published the Ofcom fined Look4Love £175,000 and, two the Help Note remain the same, the Help results of the consultation. Ofcom applied months later, revoked its licence for non- Note now reflects key innovations within the nutrient profiling to some of the restrictions payment of the fine and for not remedying utilities market: Price Freeze products and that BCAP had proposed and extended the its failures as directed. Switching Sites. Although popular with age range of children in relation to other consumers, Price Freeze products have restrictions. The new content rules will apply Turning down the volume fallen foul of the Code by not mentioning to all campaigns from 1 July 2007. More In the second half of 2006, BCAP worked significant conditions, such as availability information on the outcome of Ofcom’s with Ofcom, ITV, Channel 4 and Five to and extra costs. The Help Note explains consultation, including scheduling review the rule in the BCAP TV Code on the that all significant conditions should be restrictions, can be found at sound of TV ads. The present rule, which made clear, including the rates consumers www.ofcom.org.uk/consult/condocs/ states that advertisements must not be are fixing at. foodads_new. excessively noisy or strident, relies too heavily on a perception of loudness instead All CAP’s Help Notes are available to of providing a more objective method for download online at www.cap.org.uk. measuring the loudness of the broadcast output. A consultation on sound levels in TV advertisements is planned for 2007.

26 CAP Review of the year ASA Annual Report 2006 27 Advertising “We believe the changes Advisory to the TV and Radio Codes are a sensible way to regulate Committee broadcast gambling ads.”

Protection that the regulation of all lottery ads should The main focus of our work in 2006 has be consistent, we advised BCAP to review been on food and gambling. The Gambling its rules on National Lottery advertisements. Act loosened restrictions on gambling and We are pleased that BCAP has accepted the Gambling Commission has asked CAP, our advice and it has begun discussions BCAP and the ASA to regulate the sector’s with the National Lottery Commission on advertisement content. The AAC has this matter. participated by advising on the broadcast side of that work to ensure that the greater Evidence-based freedom which the gaming industry will have The thorny subject of food advertising to from September 2007 is exercised children – a highly politically charged and responsibly, to provide special protection for emotive topic, has occupied the AAC for vulnerable groups, especially the under-18s. most of the past two years. We have We believe the changes to the TV and Radio worked with BCAP to try to ensure that I am pleased to report that, in its second full Codes are a sensible way to regulate restrictions are proportionate and evidence- year, the Advertising Advisory Committee broadcast ads and we are pleased to note based. The AAC has twice considered and (AAC) has advised BCAP on six topics as the similar CAP restrictions in non- endorsed BCAP’s proposal for TV well as minor, technical changes to the broadcast media. restrictions and supports its draft proposal broadcast codes. for radio. We shall consider the BCAP Radio We remain concerned that, despite CAP food rules again after they have been Although most of our work on the alcohol and BCAP deciding that gambling ads subjected to public consultation. sections of the codes took place in 2005, should not have to carry compulsory we advised on the diet and health rules educational messages or warnings, the I should like to thank my colleagues for their for alcohol ads and BCAP accepted our Gambling Commission has decided to hard work: BCAP, for carefully considering advice. The AAC also advised on the TV consult separately on that subject. In their our advice, for accepting most of it and for rules on premium-rate services of a sexual joint consultation, CAP and BCAP had explaining clearly the reasons for not nature and sound levels in TV ads, which asked whether such messages were accepting the rest; Andrew Brown, the are important for the protection of warranted and concluded, correctly in our Chairman of BCAP, and Ian Blair, the consumers. We look forward to future view, that neither research evidence nor the Ofcom observer, for their valuable developments that complement the work to evaluation of consultation responses contributions to AAC debates; the BCAP restrict premium-rate services of a sexual merited that requirement. In the light of this Executive, especially for guiding us through nature to appropriate audiences and avoid information, we trust that the Commission the minefields of food and gambling, and, unacceptably intrusive sound levels in TV does not make them compulsory. finally, the lay members of the AAC for their commercials. commitment and input to our work Also, we noted that, although it covered throughout the year. lotteries, the Gambling Act did not cover the regulation of the National Lottery, including Elizabeth Filkin National Lottery ads. Because we consider Chairman

The AAC is a consumer panel established by BCAP to advise on the drafting and interpretation of BCAP’s TV and Radio Codes. Committee members are independent of the advertising industry and appointed following public advertisement.

28 Advertising Advisory Committee ASA Annual Report 2006 29 Financial How to report complain

Non-broadcast and broadcast combined For the year ended 31 December 2006 2006 2005 £ £

Income Cash received from the Advertising Standards Board of Finance Ltd 4,463,000 4,886,000

Cash received from the Broadcast Advertising Standards Board of Finance Ltd 2,892,000 2,125,000

Total 7,355,000 7,011,000 Savings in staff costs were realised due to Registered offices If you want to complain about a TV, radio or 04 the headcount being less than budgeted The Advertising Standards Authority Ltd cinema commercial, national newspaper If the Codes have been breached, the ad, Expenditure and turnover being higher than usual. Mid City Place advertisement or a poster, telephone promotion or direct marketing must be Salaries and direct staff costs 4,357,200 4,189,417 Savings in other non-salary related staff 71 High Holborn us Monday to Friday between 9am and changed or withdrawn. Where the Indirect staff costs 322,329 319,885 costs and deferring some capital London WC1V 6QT 5.30pm on 020 7492 2222 or visit our complaint is ‘not upheld’ no further action Rent and accommodation costs 959,536 736,620 expenditure on IT and office equipment Telephone 020 7492 2222 website www.asa.org.uk. is taken. The adjudications are published Travel, subsistence and entertaining 57,834 56,522 enabled the £100,000 contingency to be on our website and are made available to Consultancy and professional fees 436,723 454,696 met. There were also savings from the Registered in England: No 733214 For any other type of advertisement, such the media. Advertisers and complainants CRM project costs 71,974 – successful disposal of previous office as a local newspaper ad, mailing, online are told in advance when the case will Depreciation 269,637 276,093 accommodation. banner or pop-up ad send us your be published. Telephone, postage, printing, stationery The Advertising Standards Authority complaint, preferably with a copy of the Other general expenses 502,991 497,345 On the Profit and Loss basis, the audit (Broadcast) Ltd ad attached, by post, fax or via the online 05 Advertising and promotion 403,485 589,736 confirmed expenditure of £7,196,909; a Mid City Place complaints form on our website In certain circumstances, advertisers or Onerous lease provision (184,800) 191,413 decrease of £114,818 (1.57%) compared 71 High Holborn www.asa.org.uk. complainants can request a review of an with 2005 and considerably less than the London WC1V 6QT adjudication. Both sides have 21 days to Total 7,196,909 7,311,727 costs anticipated in the Business Plan of Telephone 020 7492 2222 What happens when we ask the Independent Reviewer of ASA September 2004 (£8,291,000). receive a complaint? Adjudications to review the case. If the Operating Profit/(Loss) 158,091 (300,727) Registered in England: No 5130991 Reviewer accepts a request for a review Profit on sale of tangible fixed asset – 3,000 The Report and Financial Statements for 01 he can ask the Council to reconsider its Interest receivable 43,402 34,209 ASA and ASA(B) reflect a split of costs When we receive a complaint, it is assessed ruling. Full details of the review procedure Finance charges payable under finance leases (31,536) (44,814) between non-broadcast and broadcast against the Codes. If there appears to be a can be found in the CAP Code and in Pension Finance 7,000 6,000 activity based on taking 61% and 39% problem we will tell you we are taking up BCAP’s Advertising Guidance Note No.3. respectively (the actual staff costs ratio for your complaint. See www.cap.org.uk. Profit/(Loss) on ordinary activities before tax 176,957 (302,332) the year) and applying them to the non- specific costs – overheads, general office If there is no case to answer under the 06 costs and the like. Specifically identifiable Codes we will tell you; in some cases, we We will check to see that our rulings costs were allocated in full to the relevant may be able to suggest another body that are complied with. The ASA staff also Year to 31 December 2006 £7,355,000; a rise of £344,000 (4.91%) function. can help. monitor the media to make sure the Audited income and expenditure figures compared with 2005. Interest received Codes are being adhered to. for the combined non-broadcast and rose by £9,193 (26.87%) and produced Profit/Loss 02 broadcast activity in 2006 are given above additional income of £43,402. The combined profit before tax of both non- We try to resolve complaints as quickly as 07 and are the total of the amounts recorded in broadcast and broadcast activity was possible. For instance we can have an ad The vast majority of advertisers comply the Report and Financial Statements of the Expenditure £176,957 (2005 – loss of £302,332). The changed if it’s a minor mistake, get your with our rulings. We work closely with the two companies that were adopted by the In the early years of the combined non- move from an overall loss to profit was due name taken off a mailing list or chase up advertising industry to act against the few Non-broadcast and Broadcast Councils at broadcast and broadcast operation, to an improvement in the income from the undelivered mail order goods on your who do not. Broadcasters cannot air ads their respective Annual General Meetings budgets and forecasts of expenditure have broadcast levy and the successful disposal behalf. If a serious breach of the Codes is that break the Codes and we can ask held on 20 April 2007. been prepared on a cash basis. The budget of the liability for previous office involved, then a formal investigation might publishers not to print ads that don’t agreed for 2006 of £7,649,113 included a accommodation, for which onerous lease be required. meet the rules. Income £100,000 contingency to be set aside. The provisions had been made in the last two Compared with 2005, income received from forecast of expenditure for the year was financial years. After tax the combined profit 03 08 the Advertising Standards Board of Finance £7,605,294; a saving of £43,819 (0.57%). was £345,185 (2005 – loss of £293,687). In a formal investigation, the advertiser Ultimately, we can refer non-broadcast Ltd fell by £423,000 (8.66%) to £4,463,000. On the cash basis, the audited figures reveal must submit evidence in writing. The ASA advertisers who persistently break the However, income received from the a saving of £9,166 (0.12%) against forecast Executive then writes a recommendation Codes to the Office of Fair Trading for legal Broadcast Advertising Standards Board of and a saving of £52,985 (0.69%) against that goes to the ASA Council. Where action under the Control of Misleading Finance Ltd rose by £767,000 (36.09%) to the budget. needed, expert advice is sought. The Advertisement Regulations. A similar £2,892,000. The total income was Council then decides if there has been safeguard exists for broadcast ads where a breach of the Codes. a broadcaster who continually airs ads that break the Codes can be referred to Ofcom.

30 Financial report ASA Annual Report 2006 31 Our standards of service

Being accessible If complaints warrant a full investigation, In 2006, 80% of such correspondence was We aim to be accessible to members of the we aim to resolve them within 60 working answered within 10 working days. The public and the advertising industry. In 2006, days, whilst recognising that complaints by average time taken was 8.9 calendar days. 85% of complainants agreed that the ASA commercial competitors can be protracted. is accessible to the public. If a complainant or advertiser believes In 2006, overall complaints were resolved that there is a substantial flaw in a Council We shall publish our contact details within an average of nine working days, adjudication, they may be able to secure an (website, address and telephone) on with 87% within target. Those requiring Independent Review by the Independent all our literature. investigation were resolved within an Reviewer of ASA Adjudications. The average of 56 days, with 73% within target. Independent Reviewer’s report for 2006 We shall ensure that our switchboard may be found on pages 20–21. is staffed during normal office hours Complainants (9am – 5.30pm). If a complaint is outside our remit we will Transparency advise within 10 working days and provide We aim to be open about our procedures We shall ensure that our website is available information on who should be contacted. and decision making, and accountable for at all times. In 2006, customer satisfaction for outside our performance. remit complaints was 57%. We shall accept complaints via the online Our adjudications are published each week complaint form on our website, by e-mail, We aim to respond to e-mail enquiries on our website at www.asa.org.uk. Our forwarding SMS, letter, fax, telephone and within 48 hours during the working week. website provides fullest information on who text phone. we are, how we operate and our consumer Effectiveness research. The usefulness of the information We shall aim to ensure that members of the We aim to meet the needs of our on our website received an 83% satisfaction public are aware of our existence and role customers, whether members of the public rating in 2006. and recognise our name and logo. In 2006, or industry. 22% of the public could spontaneously From April 2007, we shall publish our name the ASA. Our logo was recognised Whilst recognising that we operate in performance statistics on the website on by 31% of the general public. circumstances where some 80% of a quarterly basis. We publish an Annual complaints result in a ‘not upheld’ decision, Report in April/May each year, reviewing our Responsiveness we aim to achieve the highest possible activities throughout the previous calendar We aim to resolve complaints without scores in our Customer Satisfaction year. We will publish an Annual Statement undue delay, but complaints that require surveys. In 2006, overall complainant in October each year updating our investigation can take longer than the satisfaction was 61%. performance reporting (January – June) average. and setting out our objectives for the We aim to achieve the highest possible coming year. Our aim is to acknowledge complaints customer satisfaction scores from the within five working days of receipt, reply to advertisers and agencies with whom we all other correspondence within 10 working deal in resolving complaints. In 2006, this days and keep complainants advised of score was 78%. progress on a regular basis. In 2006, 87% of complainants were satisfied with the time Quality taken to acknowledge their complaint and We aim to deliver a high quality and 64% were satisfied that they were kept professional service. If a complainant or informed throughout the complaint process. advertiser believes that ASA’s handling of a complaint is not complying with these We aim to turn around complaints, on standards they can write to the Director average, within 12 working days, with General outlining their concerns and he at least 80% being within this target. will respond within 10 working days.

32 Our standards of service Advertising Standards Authority Mid City Place 71 High Holborn London WC1V 6QT Telephone 020 7492 2222 Fax 020 7242 3696 Textphone 020 7242 8159 E-mail [email protected] Online www.asa.org.uk

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