Insights Regulating Advertising: Ofcom renews co-regulatory arrangements with the ASA

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Ofcom has announced that it has decided to renew its co-regulatory arrangements with the Advertising Standards Authority (“ASA”) for regulating advertising on TV and radio, as well as on video-sharing and on-demand platforms.

As Ofcom explains in its Statement, the existing arrangements involve “the ASA regulating advertising on these services on a day-to-day basis, with Ofcom providing a statutory backdrop”. In practice, this might mean, for example, Ofcom conducting sanctions proceedings against broadcasters who have failed to comply with the ASA’s rulings, supervising the ASA’s performance against “a variety of key performance targets”, or intervening in exceptional circumstances.

In order for Ofcom to continue to contract out its statutory duties and functions to the ASA in this way, it must satisfy itself that the ASA meets certain statutory criteria, including that it is a fit and proper body, it has access to financial resources that are “adequate to ensure the effective performance of its function as the appropriate regulatory authority”, and is “sufficiently independent of providers of on demand and video sharing platforms (as appropriate)”. In addition, Ofcom has its own criteria which must be met for co-regulation arrangements, including that the relevant body has independent governance and decision-making, clear public accountability, clear and transparent processes, accessibility to those seeking redress, genuine powers of investigation, and effective powers of enforcement and sanction.

On all accounts, Ofcom concluded that the ASA met the necessary criteria, and the Statement sets out in detail Ofcom’s conclusions in respect of each individual criterion. The Statement also notes that the responses from stakeholders to a recent consultation were overwhelmingly supportive of the renewal of the co-regulatory arrangements, with many commenting that the current system means that the ASA is “one-stop shop for consumers” and ensures a “consistent regulatory approach for advertisers operating across multiple channels”.

The co-regulatory arrangements with the ASA will continue for a further 10 years, expiring on 31 October 2034 unless terminated earlier. Commenting on the announcement, the ASA Chair, Baroness Morgan of Cotes, said “we’re delighted that our co-regulatory partnership with Ofcom has been renewed. The ASA system has worked closely with Ofcom for twenty years, providing effective regulation of advertising on TV, on demand and video-sharing platforms, on behalf of people, advertisers and society. We look forward to continuing our work over the next decade – protecting consumers, creating a level playing field for business and helping create an environment in which responsible advertising can flourish.”

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