Media super-regulator Ofcom has announced new proposals to transfer the regulation of broadcast advertising to the Advertising Standards Authority despite criticism that the system could be fundamentally flawed.
The watchdog will hand over its regulatory obligations for overseeing television and radio advertising to a new co-regulatory system with the ASA as its public face in November. However, Ofcom has stipulated that it will retain a right of veto on any proposed changes to advertising codes of conduct and will also create a new Advertising Advisory Committee to aid in the code-making process.
The new plans will see Ofcom retain backstop powers over the new system and could re-impose direct statutory control if necessary. The watchdog will also retain control over the prevention of political advertising and the amount of advertising permitted on television. Responsibility for licensing broadcasters and regulating television and radio programmes will also remain the provision of Ofcom.
Commenting on the move to centralise advertising regulation, Ofcom’s chief executive, Stephen Carter, said: “The UK’s advertising industry through the ASA has successfully regulated its own actions in the non-broadcast environment for over 40 years. Extending that responsibility to create a ‘one-stop-shop’ for all advertising offers real benefits to consumers and advertisers alike.”
The proposals have been the subject of criticism with the National Consumer Council claiming the new system would not be sufficiently independent of commercial interests when plans were first mooted at the beginning of the year.
However, several advertisers and broadcasters have welcomed the move, which was announced officially by Ofcom this morning. The Commercial Radio Companies Association said the development will do much to simplify the regulatory regime of the future. The CRCA also claims that “Self-regulation works and statutory regulation should therefore be reduced.”
ITV has also voiced support for Ofcom’s proposals and a spokesman for the broadcaster stated: “We need a regulatory framework that is responsive, transparent, and, above all, has the full trust of viewers. Like Ofcom, we are confident the new co-regulatory system will deliver this and thereby bring real benefits to the industry and viewers alike.”
ISBA similarly threw its weight behind the move in January, urging its members to show support for Ofcom’s plans and congratulating the watchdog on its decision to extend the consultation period for the plans.
The next stage of the process will be for Ofcom to seek Parliamentary approval for its actions. The approval is required under the Deregulation and Contracting Out Act 1994 and, assuming approval is obtained, the regulator expects the new system to be launched in November 2004.
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