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Rigorous review leads to changes in advertising code

23 March 2010

The rules governing non-broadcast and broadcast advertising will change significantly on 1 September, 2010.

The two codes which govern non-broadcast and broadcast advertising have been amended in recent years to take into account legislative changes.

However, following a consultation which began this time last year, new ‘comprehensively reviewed and updated’ codes are now due to be launched. The new rules are in most parts the same for both non-broadcast and broadcast advertising.

We think the new codes will mean significant changes to a number of sectors, including the retail and the automotive industry.

Key changes

The new codes cover four main areas:

Of these, the biggest changes for the retail and automotive sectors seem likely to come from the first two areas, particularly Enhanced Protection for Children.

In addition to new rules restricting the information that can be collected from under-16’s and the under-12’s, there are significant new rules on ways in which advertisers advertise products aimed at children via marketing that is purposely directed at them. 

Specifically, advertisements must not contain anything that is likely to result in physical, mental, or moral harm. Examples in the rules include:

We think this is likely to have a significant impact on the retail sector in relation to direct online marketing, viral marketing, and TV advertising in particular, especially in the months before Christmas.

It is not clear how the use of extreme sports, such as free-running or skateboarding, to market products at young teenagers (especially in viral marketing), will fit with these new rules.

Social and environmental responsibility

There is a new overarching principle for all broadcast advertising of social responsibility, in that all advertisements must be prepared with a sense of responsibility to the audience.

New rules covering claims made about the environmental benefits of products will be introduced. These rules will prevent marketers from exaggerating the environmental benefits of their products.

This includes a prohibition on highlighting an environmental benefit that results from a legal obligation if competing products are also subject to the same obligation. Marketers must also base environmental claims on the full life-span of the product, unless this is not possible. Importantly, absolute claims such as ‘greener’ must be supported by a high level of substantiation.

We think that this is likely to have a significant impact on the automotive sector. These new rules could see a rise in competing manufacturers raising complaints about the environmental claims regarding fuel economy, CO² emissions, or general ‘greenness’ of new models, such as hybrids and alternative fuels of other manufacturers.

Buy a Hummer, get a free gun

There are also new provisions regarding the use of the word ‘free’.

A Hummer car dealer in the US recently started offering buyers a free shotgun with each new purchase. Apparently, the guns have been a huge hit with buyers!

It will come as no surprise that this marketing campaign would not be compatible with either the current or new regulations. 

Further information

The new rules can be downloaded from the link at the bottom of this article, and we suggest that your marketing departments become familiar with them over the next six months or so.  

The new codes can be found at: http://bcap.org.uk/The-Codes/New-Advertising-Codes.aspx

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Get in touch

Emile Saadi

Solicitor
T: 03700 86 8494
I: +44 (0)1908 48 8494
E: emile.saadi@shoosmiths.co.uk