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Advertising restrictions
The term advertising restrictions is used here to encompass the laws, regulations and codes of practice that govern and control the advertising industry. These include rules on food labelling, misleading advertisements, tobacco advertising, the protection of some members of society (such as children), alcohol advertising and gambling. The Fact File will also look at some trademark and copyright law, but these are covered in more depth in other Fact Files. Please note that not all countries abide by the same laws and standards. Some countries have no regulation, some rely on self-regulation, some on legislation, and others, a mixture of both. Sweden, Norway and Finland are countries in Europe that are particularly strict with their advertising restrictions. The Advertising Standards Authority (ASA) is the independent body responsible for investigating complaints and assisting the Committee of Advertising Practice (CAP) CAP writes, and enforces, the British Codes of Advertising, Sales Promotion and Direct Marketing. Nonbroadcast advertising is governed by the CAP Code, while broadcast advertising is governed by the TV Advertising Standards Code and the Radio Advertising Standards Code (BCAP Codes). The ASA investigates complaints relating to all advertising media. Lord Borrie QC, Chairman, The Advertising Standards Authority, on 29 March 2001, stated the following in his speech Is self-regulation still the best way to protect advertising freedom? "No wonder the ASA is reviewing all its processes and re-organising because it's being asked to take decisions about services that are wholly outside all our previous experience. We have sensibly defined our remit for Internet advertising. We don't try to regulate the whole of cyberspace. But we do apply the Codes to advertising in paid-for space banners, pop-ups to commercial e-mails and to sales promotions. It's a growing responsibility for us and it's growing rapidly. The Consumer Protection Act (1987) makes it an offence to issue misleading price indications. The Office of Fair Trading (OFT) has the power to take legal action against companies that breach the Act. This would usually only occur if a company breached self-regulatory codes and ignored ASA instructions, or if misleading price information is published on companies websites which falls outside the remit of the ASA. The Incorporated Society of British Advertisers (ISBA) publishes briefing papers, guidance notes and best practice toolkits on various aspects of advertising. The Department for Business Innovation and Skills produces a fact sheet on the control of misleading advertising. Broadcasting Broadcasting in the UK is regulated by Ofcom. This includes satellite and terrestrial television and radio. Ofcoms Broadcasting Code (BCAP Code) came into force in July 2005, and includes the regulation of broadcast advertising and sponsorship. In 2003, Ofcom took over broadcasting regulation from Oftel, the Independent Television Commission, the Radio Authority, the Radio Communications Agency and the Broadcasting Standards Commission.

This document is guidance only and should not be used as a substitute for specific legal advice.

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The Broadcast Advertising Clearance Centre was taken over by Clearcast in 2007. It works on behalf of broadcasters to make sure advertisers comply with the BCAP codes, and aims to prevent widespread offence and advertising that is misleading or harmful. Video on Demand (VoD) The Audio Visual Media Services (AVMS) Directive came into force on 19 December 2009. Under the Directive, VoD advertising must comply with the CAP Code. The CAP Code is similar to, but not the same as, the BCAP Code, with which live broadcast must comply. Internet, email and viral Internet advertising is covered by the ASA. This includes banner advertisements, commercial emails, broadband services, short text messaging, WAP phones, etc. CAP defines viral advertising as e-mail, text or other non-broadcast marketing messages that are designed to stimulate significant circulation by recipients to generate commercial or reputational benefit to the advertiser from the consequential publicity. Viral advertising is covered by the CAP code, and CAP has issued a Help Note on Advertising Virals. Comparative advertising Comparative advertising is when comparisons are made to distinguish or identify a product or service fairly from the competition. It is allowed under the British Code of Advertising Practice to allow competition, as long as it abides with the codes and is not misleading, and compares goods or services meeting the same needs or intended for the same purpose. Another term for it is "knocking copy". The Control of Misleading Advertisements (Amendment) Regulations 2000 If a comparison is made with a competitor, and its name or product is registered as a trademark, it is allowed, despite the protection of the Trade Marks Act 1994, as long as it is honest and does not take unfair advantage of, or is or would be detrimental to, the distinctive character or repute of the trademark." (TMA 1994, 4b). The Copyright, Designs and Patents Act 1988 can also have an effect on comparative advertising, as it protects artistic, musical and literary works, and other works that could include logos, and advertising slogans. It does not refer to comparative advertising in the Act. Examples of cases that have been brought to court regarding comparative advertising include: Cable & Wireless PLC v British Telecommunications PLC Vodafone Group PLC v Orange Personal Communications Services Ltd 1997 Emaco & Electrolux v Dyson British Airways v Ryanair In 2008, The Control of Misleading Advertisements Regulations (and many other pieces of consumer protection legislation such as the Trades Descriptions Act 1968) were repealed and replaced with the Consumer Protection from Unfair Trading Regulations and the Business Protection from Misleading Marketing Regulations.

Tobacco advertising, labelling and sponsorship The Tobacco Advertising and Promotion Act 2002 came into force on 14 February 2003, banning almost all tobacco advertising. A clause in the Act allows for A5-sized point of purchase advertisements, with one-third of the advert being a health warning. In 2005 an EU Directive on Advertising and Sponsorship of Tobacco Products (2003/33/EC) banned the crossborder sponsorship of tobacco products within the EU. The Framework Convention Alliance covers a range of tobacco control topics, including advertising. It came into force in February 2005, when 168 countries signed up to the treaty. Since then, a number of other countries have endorsed the treaty. The UK government ratified the treaty in December 2004. Tobacco Manufacturer's Association represents the UK tobacco sector.

ASH aims to ban all forms of tobacco advertising, sponsorship and promotion.

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The Directorate General for Health and Consumers works to make Europe's citizens healthier, safer and more confident.

Alcohol advertising The CAP Codes contain specific rules on the advertising of alcohol. The rules cover what should not be shown, or encouraged, in alcohol advertisements. (See under other categories in the BCAP TV Advertising Code.) The Portman Group encourages the drinks industry to act responsibly and has a voluntary code of practice relating to the marketing of alcohol. The Portman Group has an independent complaints panel to rule on complaints made under its code of practice. The Responsible Marketing of Alcoholic Drinks in Digital Media is a guide published by the Portman Group to help brands stay within Portmans and the ASAs code of practice for advertising alcohol online. It helps to prevent advertising to the under-18s. Some drinks companies have internal marketing codes or marketing review boards to self-regulate the advertising of alcohol.

Food Labelling Food Standards Agency enforces regulations on food labelling in the UK. The website includes a section on food labelling and packaging and the traffic light food labelling system. EU regulation on nutrition and health claims made on food 2006. The Department for Environment, Food and Rural Affairs (DEFRA) has introduced a Green claims code that provides the public with information about the environmental impacts of consumer products.

Advertising to children In some countries, certain types of advertising to children are banned, for example in Sweden. Current UK guidelines and restrictions are as follows: Ofcom Broadcast Code Protecting the Under-Eighteens The CAP Codes have specific guidance. (See under Children in the BCAP TV Advertising Code, for example.) New codes, which will come into effect on 1 September 2010, control the collection of childrens data. Foods that are high in fat, salt or sugar (HFSS) In 2007 Ofcom introduced new rules on advertising HFSS to children. They were introduced between April 2007 and January 2009. MediaSmart is a media literacy initiative focusing on helping children to understand the role, purpose and context of advertising. In December 2009, the Department for Children, Schools and Families, and the Department for Culture, Media and Sport released a report on the effects that marketing and the commercial world have on children. The Impact of the Commercial World on Childrens Wellbeing: Report of an Independent Assessment.

Gambling advertising In September 2007, the full provisions of the Gambling Act (2005) came in to force. The Gambling Act replaced the Gaming Act (1968) and the Lotteries and Amusements Act (1976). The Gambling Commission regulates the gambling in the UK. The Advertising Standards Authority explains the rules, as do the CAP Codes (see under Other categories in the BCAP TV Advertising Code, for example). Online gaming advertising - The Gambling Commission and the Department for Culture, Media and Sport issued joint guidance on Advertising by Remote Gaming Operators in March 2006.

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Distance Selling The Distance Marketing Directive (DMD) is regulated in the UK by the Financial Services Authority (FSA) for firms and activities that it already regulates. The Department for Business, Innovation and Skills implements the directive for consumer credit, second charge mortgages and related activities. The Treasury has overall UK responsibility for ensuring that the directive is implemented. Consumer Protection (distance selling) regulations 2000 covers the selling of goods or services to consumers by mail order, internet, telephone, fax and digital television. The Direct Selling Association has published a Code of Business Conduct and a Consumer Code of Practice, that contain rules on advertising Pharmaceuticals advertising legislation The Medicines and Healthcare products Regulatory Agency (MHRA) has information about advertising on its website, including information on the legislative framework in Europe and the UK. The Proprietary Association of Great Britain (PAGB) also has an advertising code. Complaints about the misleading advertising of medicines should be directed to the MHRA or the Prescription Medicines Code of Practice Authority (PMCPA). Health and Beauty The CAP Codes contains rules on the advertising of health and beauty products (see under Medicines, Treatments, Health Claims and Nutrition in the BCAP TV Advertising Codes, for example). Motoring The CAP Codes include specific rules on advertisements for cars, motorbikes and other automotive products (see under Other categories). These rules include restrictions on portraying anti-social behaviour, referring to speeds in excess of 70 mph, focusing on speed, acceleration or power, and encouraging motorists to drive irresponsibly or break the law. Manufacturers should comply with the CAP Codes with respect to viral and internet advertising. On-screen product placement, such as the James Bond films, fall outside the remit of the advertising codes. There are help notes on these and other topics on the ASA, ISBA and Ofcom websites.

Books on rejected advertising Best Rejected Advertising Volume 1 Best Rejected Advertising Volume 2

2012 Olympics For restrictions associated with the Olympic Games, please follow the link to our Fact File.

Articles from The Marketer [Hyperlinks will take you to a log in request. Members can access this site using the same user name and password as the main CIM website.] Montes, A. (2008) Advertising food to children. The Marketer, March, p17. Montes, A. (2009) Boozy blunders. The Marketer, June, p17. Montes, A. (2009) Editorial or advertorial? The Marketer, November, p17. Montes, A. (2009) Health claims are knocked into shape. The Marketer, April, p17. Williams, A. (2010) New rules for advertisers. The Marketer, May, p17. Montes, A. (2009) Think youre better? Prove it. The Marketer, February, p17. Montes, A. (2009) Dare to compare. The Marketer, September, p17.

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For further information please go to www.cim.co.uk/resources or contact: The Library The Chartered Institute of Marketing Moor Hall, Cookham, Maidenhead, Berks SL6 9QH Tel: +44 (0)1628 427333 Fax: +44 (0) 1628 427349 Email: library@cim.co.uk

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