Advertising update â the new CAP and BCAP Codes - Farrer & Co
Advertising update â the new CAP and BCAP Codes - Farrer & Co
Advertising update â the new CAP and BCAP Codes - Farrer & Co
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<strong>Advertising</strong> <strong>update</strong> – <strong>the</strong> <strong>new</strong> <strong>CAP</strong> <strong>and</strong> B<strong>CAP</strong> <strong><strong>Co</strong>des</strong><br />
August 2010<br />
1. Who are <strong>CAP</strong> <strong>and</strong> B<strong>CAP</strong><br />
The <strong>Co</strong>mmittee of <strong>Advertising</strong> Practice (“<strong>CAP</strong>”) is <strong>the</strong> self-regulatory body that created <strong>and</strong> maintains <strong>the</strong> UK <strong>Co</strong>de<br />
of Non-broadcast <strong>Advertising</strong>, Sales Promotion <strong>and</strong> Direct Marketing communications (“<strong>CAP</strong> <strong>Co</strong>de”) which regulates<br />
non-broadcast marketing communications in <strong>the</strong> UK. The Broadcast <strong>Co</strong>mmittee of <strong>Advertising</strong> Practice (“B<strong>CAP</strong>”) is<br />
<strong>the</strong> equivalent body for broadcast marketing communications.<br />
2. What are <strong>the</strong> <strong><strong>Co</strong>des</strong><br />
<strong>CAP</strong> <strong>and</strong> B<strong>CAP</strong> launched a 12 week consultation in March 2009 to review in <strong>the</strong>ir entirety <strong>the</strong> <strong>CAP</strong> <strong>Co</strong>de <strong>and</strong> to create<br />
a <strong>new</strong> UK <strong>Co</strong>de of Broadcast <strong>Advertising</strong> (“<strong>the</strong> B<strong>CAP</strong> <strong>Co</strong>de”) as well as to ensure <strong>the</strong>y were both up to date, relevant<br />
<strong>and</strong> fit for purpose.<br />
Over 30,000 responses were received from consumers, industry, Government, charities, parents <strong>and</strong> children’s<br />
groups, consumer protection bodies, regulators <strong>and</strong> religious organisations which were <strong>the</strong>n considered by <strong>CAP</strong> <strong>and</strong><br />
B<strong>CAP</strong> resulting in <strong>the</strong> <strong>new</strong> versions of <strong>the</strong> <strong><strong>Co</strong>des</strong> which can be accessed here.<br />
The revised <strong>CAP</strong> <strong>Co</strong>de is primarily concerned with <strong>the</strong> content of marketing communications <strong>and</strong> not <strong>the</strong> terms of<br />
business or <strong>the</strong> products <strong>the</strong>mselves. The <strong>new</strong> B<strong>CAP</strong> <strong>Co</strong>de applies to all adverts (including teleshopping, content on<br />
self-promotional TV channels, TV text <strong>and</strong> interactive TV adverts) <strong>and</strong> also programme sponsorship credits on radio<br />
<strong>and</strong> TV services licensed by OFCOM. It replaces 4 previous B<strong>CAP</strong> <strong><strong>Co</strong>des</strong> for broadcast advertising.<br />
Both <strong><strong>Co</strong>des</strong> will be enforced by <strong>the</strong> <strong>Advertising</strong> St<strong>and</strong>ards Authority (“ASA”) on behalf of OFCOM. The <strong><strong>Co</strong>des</strong> do not<br />
have legal force but supplement <strong>the</strong> law <strong>and</strong> self-regulation often ensures legislation is not needed. The ASA can<br />
impose a range of sanctions for non-compliance <strong>and</strong> ASA rulings can generate negative publicity.<br />
3. When will <strong>the</strong> <strong><strong>Co</strong>des</strong> take effect<br />
They take effect on 1 September 2010.<br />
4. What are <strong>the</strong> key changes<br />
The two <strong><strong>Co</strong>des</strong> now share many of <strong>the</strong> same rules in key areas <strong>and</strong> are designed to be clearer <strong>and</strong> more userfriendly.<br />
They also take into account relevant recent legislation including <strong>the</strong> <strong>Co</strong>nsumer Protection from Unfair Trading<br />
Regulations 2008 (SI 2008/1277), <strong>the</strong> European Regulation on Health <strong>and</strong> Nutritional Claims (1924/2006/EC) <strong>and</strong><br />
<strong>the</strong> Gambling Act 2005 (for fur<strong>the</strong>r information please refer to our Prize <strong>Co</strong>mpetitions <strong>and</strong> Free Prize Draws: The<br />
Gambling <strong>Co</strong>mmission’s New Guidance on <strong>the</strong> Gambling Act 2005 briefing).<br />
Telephone: +44 (0)20 3375 7000 Email: enquiries@farrer.co.uk Web: www.farrer.co.uk
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We set out some of <strong>the</strong> most important changes below:<br />
Enhanced protection for children<br />
• Database Practice – marketers are not allowed to collect data from under 12s without parental consent <strong>and</strong><br />
marketers must not knowingly collect data about third parties from under 16s (<strong>CAP</strong> 10.15 <strong>and</strong> <strong>CAP</strong> 10.16)<br />
• Direct Exhortation <strong>and</strong> Parental Authority – advertisers are banned from using adverts addressed to / targeted<br />
directly at children actively encouraging <strong>the</strong>m to buy a product or persuade adults to buy a product for <strong>the</strong>m (to<br />
comply with <strong>the</strong> <strong>Co</strong>nsumer Protection from Unfair Trading Regulations 2008) (<strong>CAP</strong> 5.4)<br />
• <strong>Co</strong>mputer <strong>and</strong> console games – <strong>new</strong> TV <strong>and</strong> radio scheduling restrictions will prevent adverts for age-restricted<br />
computer <strong>and</strong> console games appearing around children’s programmes (B<strong>CAP</strong> 32.20)<br />
• Harm <strong>and</strong> Offence – TV <strong>and</strong> radio adverts must not exploit <strong>the</strong> trust children place in parents, teachers or o<strong>the</strong>r<br />
persons (B<strong>CAP</strong> 4.3)<br />
• Scheduling - broadcast adverts featuring a well-known personality or performer, or a person who takes a leading<br />
role in or whose appearance is central to a children’s programme, must not be scheduled in breaks adjacent to<br />
that programme to maintain a distinction between programmes <strong>and</strong> adverts that is clear to a child (B<strong>CAP</strong> 31.10)<br />
Social <strong>and</strong> environmental responsibility<br />
• <strong>Co</strong>mpliance <strong>and</strong> Social responsibility – an overarching social responsibility rule in B<strong>CAP</strong> <strong>Co</strong>de brings it in line<br />
with <strong>the</strong> <strong>CAP</strong> <strong>Co</strong>de (B<strong>CAP</strong> 1.2)<br />
• Environmental claims – marketers must not exaggerate <strong>the</strong> environmental benefits of <strong>the</strong>ir products (e.g.<br />
highlighting <strong>the</strong> absence of an environmentally damaging ingredient if that ingredient is not usually found in<br />
competing products or highlighting an environmental benefit that results from a legal obligation if competing<br />
products are subject to that legal obligation) (<strong>CAP</strong> 11.7) <strong>and</strong> reflecting <strong>the</strong> same for broadcast advertisements<br />
(B<strong>CAP</strong> 9)<br />
• Lotteries - dedicated “lottery advertising” sections cover <strong>the</strong> National Lottery <strong>and</strong> lotteries licensed under <strong>the</strong><br />
Gambling Act 2005 <strong>and</strong> both <strong><strong>Co</strong>des</strong> consider that all lottery adverts should be subject to <strong>the</strong> same social<br />
responsibility rules regardless of <strong>the</strong>ir different regulatory status (B<strong>CAP</strong> 18) (for fur<strong>the</strong>r information on gaming<br />
please refer to our Prize <strong>Co</strong>mpetitions <strong>and</strong> Free Prize Draws: The Gambling <strong>Co</strong>mmission’s New Guidance<br />
on <strong>the</strong> Gambling Act 2005 briefing)<br />
Health<br />
• Food <strong>and</strong> Medicine - both <strong><strong>Co</strong>des</strong> reflect <strong>the</strong> main provisions of European Regulation 1924/2006/EC on nutrition<br />
<strong>and</strong> health claims made on foods <strong>and</strong> European Directive 2004/24/EC on Traditional Herbal Medicines<br />
• Photo-sensitivity epilepsy – <strong>new</strong> rules concerning visual effects or techniques likely to adversely affect members<br />
of <strong>the</strong> public with this disorder in line with an existing TV rule (<strong>CAP</strong> 4.7 for non-broadcast)<br />
<strong>Co</strong>nsumer protection<br />
• Misleading <strong>Advertising</strong> – <strong>the</strong> definition of “free” in adverts is clarified (<strong>CAP</strong> 3.23-3.26 <strong>and</strong> B<strong>CAP</strong> 3.25-3.27)<br />
• Financial Products / Debt Advice – adverts should comply with published OFT guidance (<strong>CAP</strong> 14)<br />
• Significant conditions for promotions – marketers must be clear about <strong>the</strong> number <strong>and</strong> nature of prizes including<br />
prizes available to be won <strong>and</strong> prizes guaranteed to be won. Marketers also need to ensure that recipients of<br />
“instant wins” are able to access <strong>the</strong>ir prize quickly <strong>and</strong> easily (<strong>CAP</strong> 8.17.6)<br />
• Distance Selling – <strong>the</strong> rules on distance selling in B<strong>CAP</strong> <strong>Co</strong>de have been <strong>update</strong>d e.g. <strong>the</strong> consumer can cancel<br />
within 7 days for any reason (B<strong>CAP</strong> 8.4) <strong>and</strong> advertisers must fulfil orders within 30 days unless <strong>the</strong>y have agreed<br />
a longer period for performing <strong>the</strong> contract with <strong>the</strong> customer (B<strong>CAP</strong> 8.3.5). Also <strong>new</strong> rules on dealing with<br />
limited stock, protecting consumers’ money <strong>and</strong> making <strong>the</strong> identity of <strong>the</strong> marketer clear)<br />
Telephone: +44 (0)20 3375 7000 Email: enquiries@farrer.co.uk Web: www.farrer.co.uk
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Sector-specific rules<br />
• <strong>Co</strong>mparative charity adverts – <strong>the</strong> charity sector will now be able to air comparative adverts comparing one<br />
charity with ano<strong>the</strong>r on TV <strong>and</strong> radio subject to <strong>the</strong> rules on comparative advertising (B<strong>CAP</strong> 16)<br />
• Adult material – this can only be broadcast on adult entertainment channels accessible through m<strong>and</strong>atory PIN<br />
access controls (B<strong>CAP</strong> 23)<br />
• Betting tipsters – allowed to advertise on TV Text services but are now also permitted to advertise on TV <strong>and</strong><br />
radio provided <strong>the</strong>y adhere to rules on not misleading audiences (B<strong>CAP</strong> 21)<br />
• Recognition of advertising - adverts must be obviously identifiable as such (<strong>CAP</strong> 2.1) <strong>and</strong> for broadcast<br />
advertising, <strong>the</strong>y must be obviously distinguishable from editorial content <strong>and</strong> <strong>the</strong> audience should quickly<br />
recognise that <strong>the</strong> message is an advert (B<strong>CAP</strong> 2.2.2 <strong>and</strong> 2.1 respectively). The rules on not using <strong>new</strong>s-like<br />
techniques such as simulated <strong>new</strong>s flashes or using titles or logos associated with a programme broadcast on<br />
that media are being relaxed, with <strong>the</strong> general principle being that advertising is instantly recognisable as such<br />
6. Online advertising<br />
During <strong>the</strong> consultation process, <strong>CAP</strong> clarified <strong>the</strong> existing online remit of <strong>the</strong> <strong>CAP</strong> <strong>Co</strong>de which covers paid-for adverts<br />
<strong>and</strong> sales promotions on websites. The consultation did not contain proposals to extend <strong>the</strong> <strong>CAP</strong> <strong>Co</strong>de’s remit to cover<br />
marketer’s own adverts on <strong>the</strong>ir own websites because this was being considered by a separate project led by <strong>the</strong><br />
<strong>Advertising</strong> Association at that time. The advertising industry has now recommended an extended online remit to <strong>CAP</strong><br />
toge<strong>the</strong>r with <strong>new</strong> enforcement powers <strong>and</strong> a mechanism to fund its regulation. <strong>CAP</strong> will review this recommendation<br />
to bring <strong>the</strong> <strong>new</strong> remit into effect as soon as possible.<br />
If you require fur<strong>the</strong>r information on anything covered in this bulletin please contact advertising@farrer.co.uk or your<br />
usual contact at <strong>the</strong> firm on 020 3375 7000.<br />
This publication is a general summary of <strong>the</strong> law. It should not replace legal advice tailored to your specific<br />
circumstances.<br />
Telephone: +44 (0)20 3375 7000 Email: enquiries@farrer.co.uk Web: www.farrer.co.uk