March 25, 2011
As of 1 March, the remit of the Advertising Standards Agency (ASA) has now been extended to cover on-line advertisements including those on company websites and social media applications and sites.
Such advertising is regulated by the UK Code of Non-Broadcast Advertising, Sales Promotion and Direct Marketing (CAP Code). The main principle behind the Code is that advertising should be “legal, decent, honest and truthful”. It only applies to marketing communications that are ‘directly connected with the supply or transfer of goods or services’ but these no longer have to be paid for listings for the Code to apply.
The CAP Code is enforced not through fines but through adverse publicity relating to complaints that have been upheld, through the ASA’s name and shame policy and the refusal of further advertising space on sites, or the removal of paid or sponsored search listings linking to the advertisement in question.
Businesses that advertise on-line and on social media platforms should familiarise themselves with the CAP Code to ensure that they are not in breach of its terms.
Further advice can be obtained from a business law solicitor.
