Distance selling advertising rules should be more limited, advertising body says

BCAP is in charge of maintaining the UK Code of Broadcast Advertising (BCAP Code). The Code sets out what marketers can and cannot do when creating radio and TV adverts. A section of the BCAP Code makes broadcasters responsible for giving consumers an extra layer of protection against advertisers of distance-sold goods – sales not conducted face-to-face.

Broadcasters must make sure advertisers comply with specific standards on distance selling which the Code relays in accordance with UK distance selling laws. Those laws are mainly set out in the Distance Selling Regulations (DSRs) which businesses that trade online, over the phone or using other distance-selling methods must comply with.

The DSRs give shoppers specific legal protections and different cancellation rights from those buying in store, including the right to a full refund on certain distance-sold goods they return within seven days.

At the moment the distance selling rules within the BCAP Code apply to adverts targeted at both businesses and consumers, but BCAP has launched a consultation proposing that the rules should only apply to consumer-targeted ads.

"BCAP considers it is justified to maintain rules that go beyond advertisement content in order to promote high standards of consumer protection where those standards are established in law and closely linked, in consumers’ minds, with advertising standards," the BCAP's consultation (Click through for 16-page / 129KB PDF) said.

"But in the case of business customers, BCAP considers that the Code need not apply to trading practices beyond advertising," the consultation said.

BCAP said that because the DSRs only apply to transactions made between businesses and consumers, the BCAP Code should be revised with the same limitation.

"The [BCAP] Code, in effect, imposes requirements on business-to-business distance selling advertisers that exceed those established in law and could conflict with the contractual agreements that the advertiser may legitimately form with their business customers," the consultation said.

"To align the BCAP Code with the legal framework for distance selling, BCAP proposes to restrict the scope of the Distance Selling section of the Code to business-to-consumer advertising. Because the rest of the BCAP Code will continue to apply to business-to-business advertising, including distance selling advertisements, business customers will continue to enjoy protection from misleading advertisements," the consultation said.

The BCAP consultation ends on 16 September.

The Advertising Standards Authority (ASA), the UK's advertising regulator, can ask broadcasters not to air adverts if it rules that they violate the BCAP Code. Ofcom, the communications regulator, can fine or revoke the licences of broadcasters that continually air ads that breach the Code.

New EU-wide rules for online shopping, contained in the EU Consumer Rights Directive (Directive) will make changes to the DSRs. The Directive was approved by the European Parliament on 23 June but is yet to go through the final approval process before it becomes law.  It is expected that the changes will take effect from 2013.