The ASA hopes that the move will plug a regulatory gap that has
resulted in two thirds of the complaints it receives relating to
activity over which it has no authority.
Trade body the Advertising Association has recommended that the
ASA regulate companies' activity on sites such as Facebook and
Twitter.
"This landmark move for advertising self-regulation seeks to
address societal concerns and will increase protection for
consumers and children," said an Advertising Association statement.
"The recommendations, if accepted, will bring companies’ marketing
communications on their own websites, and other non-paid for space
online, such as brand activity on social networking sites, within
scope of the CAP Code."
The CAP (Committee of Advertising Practice) Code is the basis of
the ASA's regulation. The ASA has welcomed the move.
"Currently, the ASA’s online remit covers paid-for marketing
communications such as pop-up and banner ads, paid-search and viral
ads," said an ASA statement. "However, nearly two thirds of the
complaints that we receive about online marketing activity are not
presently covered by the Code. The proposed extension of our remit
will plug this regulatory gap, ensuring that consumers enjoy the
same level of protection on websites as they do in paid-for
space."
"This is a direct and sensible response to people’s concerns
about the protection of consumers and children online," said ASA
chairman Lord Smith of Finsbury. "We know from our active
monitoring work that where the Code applies, there is very high
compliance with the rules and ASA decisions. This … is another
example of the self-regulatory system responding to social and
technological changes.”
The ASA currently regulates adverts on websites and other forms
of paid-for marketing. These include viral adverts, games that act
as adverts, paid-for search listings and spots on price comparison
services, and adverts in games. These recommendations will extend
their influence to cover the overall content of companies' social
networking sites, which is material companies usually host
themselves rather than pay other companies to publish.
The Advertising Association said that the changes could take
effect by the end of the year.
"It is anticipated that the extended remit will come into force
during the third quarter of 2010, once formally ratified by CAP and
the ASA, and after appropriate consultation," said the Advertising
Association statement.
"We welcome the complex work undertaken by industry to finalise
recommendations that cover three key principles - a newly defined
online remit, effective enforcement measures and a funding
mechanism," said CAP chairman Andrew Brown. "CAP will now consider
all the implications and practicalities of the recommendations in
consultation with the appropriate stakeholders, with the ultimate
aim of bringing the new remit into effect as soon as possible.”
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