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Task 11: Regulatory Body: How Is The ASA Funded?

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Task 11: Regulatory Body

The Advertising Standards Authority(ASA) is the independent body which regulates


all advertising the UK across all media.

How is the ASA funded?


The ASA is funded by advertisers through an arms length arrangement that
guarantees the ASAs independence.

Collected by the Advertising Standards Board of Finance (Asbof) and the Broadcast
Advertising Standards Board of Finance (Basbof), the 0.1% levy on the cost of
buying advertising space and the 0.2% levy on some direct mail ensures the ASA is
adequately funded to keep UK advertising standards high. We also receive a small
income from charging for some seminars and premium industry advice services.

We receive no Government funding and therefore our work is free to the tax payer.

The levy system means the ASA has the necessary resources to handle more than
30,000 complaints each year and independently check thousands of ads every year.
In addition, the funding supports CAPs Copy Advice service which provides pre-
publication advice to advertisers, agencies and the media.

The separate funding mechanism ensures that the ASA does not know which
advertisers choose to fund the system or the amount they contribute.

The levy is the only part of the system that is voluntary. Advertisers can choose to
pay the levy, but they cannot choose to comply with the Advertising Codes or the
ASAs rulings. https://www.asa.org.uk/About-ASA/Funding.aspx

What exactly does the ASA do?


The Advertising Standards Authority is the UKs independent regulator of advertising
across all media. We apply the Advertising Codes, which are written by the
Committees of Advertising Practice. Our work includes acting on complaints and
proactively checking the media to take action against misleading, harmful or
offensive advertisements. https://www.asa.org.uk/About-ASA.aspx

How does self-regulation of non-broadcast


advertising work?
Self-regulation means that the industry has voluntarily established and paid for its
own regulation.
The system works because it is powered and driven by a sense of corporate social
responsibility amongst the advertising industry. Advertisers have an interest in
maintaining the system because:
Making sure that consumers are not misled, harmed or offended by ads helps
to maintain consumer confidence in advertising. Advertising that is welcomed by
consumers is good for business.
It maintains a level playing field amongst businesses. It is important for fair
competition that all advertisers play by the same rules.
Maintaining the self-regulatory system is much more cost-effective for
advertisers than paying the legal costs of a court case.
The role of the industry is to write the Advertising Codes, help advertisers to comply
with the rules and to pay for the system.
However, the industry does not administer its own rules. It has established the
Advertising Standards Authority (ASA) as the independent adjudicator.
Advertising self-regulation is flexible in its scope and is able to adapt to market
conditions. This is particularly important in the fast-moving advertising industry.
The Code reflects requirements in law, but also contains many rules that are not
required by law at all. The advertising industry has chosen to exercise this self-
restraint not only to make further legislation unnecessary, but also as a public
demonstration of its commitment to high standards in advertising.
Because the system works successfully, the UK Government has not needed to
regulate directly. However, that doesnt mean that the views of politicians or civil
society and the wider industry - on advertising regulation are unimportant, so we
actively seek out their views on our work. https://www.asa.org.uk/About-ASA/About-
regulation/Self-regulation-of-non-broadcast-advertising-.aspx

How does regulation work after an advertisement


has appeared and what sanctions can the ASA
impose?
As well as acting on complaints, we carry out many other regulatory activities to
make sure advertising stays within the rules. For example, the ASA actively checks
ads in all media and regularly conducts surveys of advertisements published by
sectors where there is either unsatisfactory compliance with the Codes or where
there are societal concerns about that sector.
And together with CAP, we work to support the industry to help them get their ads
right before they are published. For example, by providing guidance, pre-publication
advice and training for the industry. https://www.asa.org.uk/About-ASA/About-
regulation.aspx

Examples of complaints on the ASA website which were made about


advertising for Bernardos and TESCO.

Tesco
Advertisement
A national press ad for Tesco, seen in October 2015, was headlined Never pay
more for your branded shop. Text below stated, If its cheaper at Asda, Morrisons or
Sainsburys, well take the money off your bill at the till. It included an image of a
character associated with a flour brand holding an icon that carried the text Brand
Guarantee.
Small print included Min. basket of 10 different products, including 1 comparable
branded product. Total price of branded grocery shop compared with Asda,
Morrisons and Sainsburys and if cheaper elsewhere the difference will be taken off
your bill .

Issue
Sainsbury's Supermarkets Ltd, who believed the ad did not make the minimum
purchase restriction sufficiently clear, challenged whether the claim Never pay more
for your branded shop was misleading.

Response

Tesco Stores Ltd believed the ad communicated the scheme clearly to consumers
and was consistent with the industrys wider approach to price match advertising.
They understood consumers were familiar with how price match schemes worked
and that a minimum spend requirement generally applied. They believed the ad
made clear that a branded shop was made up of multiple products, which was
something consumers were also already familiar with. Tesco considered the
combination of the text and the Brand Guarantee logo communicated to consumers
that the ad related to a price match scheme for branded products in which prices
were matched against ASDA, Morrisons and Sainsburys, and that it worked by
taking money off at the till if the branded shop cost more at Tesco.

Tesco said that of the conditions set out in the small print the first was the minimum
purchase requirement, and that was communicated in a context in which, as above,
it was clear that the scheme applied to the shop as a whole. The first part of the
small print also made clear what qualified as a branded shop and informed
consumers where they could find further information. Tesco accepted that the
minimum purchase requirement was a condition that should be brought to
consumers attention, however, they believed it was sufficient to do so in small print,
because it was not so significant as to contradict the headline claim (but instead
clarified the nature of a branded shop). They also said the condition was of no
more importance than those such as geographical restrictions or maximum refunds,
which were typically also in small print. They said price match schemes were usually
aimed at shops that included multiple items and that their data showed the average
Brand Guarantee shop contained 24.4 items, whereas the minimum number to
qualify for the match was ten. Tesco had taken advice from the CAP Copy Advice
team, who believed the ad was likely to be acceptable in relation to the minimum
purchase requirement. https://www.asa.org.uk/Rulings/Adjudications/2016/3/Tesco-
Stores-Ltd/SHP_ADJ_316872.aspx#.WG-XSFOLSUk

Bernardos
The ASA received 840 complaints about this Barnardos ad campaign, which was
designed to raise awareness of domestic child abuse. The TV campaign featured
repeated scenes of violence and drug-taking, which many viewers found upsetting
and not suitable for broadcast at times when children were likely to be watching. We
did not doubt the distress or offence described by many of the complainants.
However, we considered the ads were appropriately scheduled and their aim justified
the use of strong imagery.

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