Simply Media TV Ltd

Ofcom proposes to contract out broadcast advertising regulation to a new system with the Advertising Standards Authority (ASA) as its public face. Ofcom's Regulatory Impact Assessment, published with the consultation document, concludes that the proposed system would have various consumer and industry benefits.

The BTSA is represented on the AA Task Force of broadcast advertising representatives from across the industry, who have been responsible for the architecture of the proposed new system of broadcast advertising self regulation. It has been developed in consultation with the Advertising Standards Authority (ASA) which would be charged with managing the new system.

Andrew Brown, Director-General of the AA, said, "Media convergence is creating new challenges for regulating advertising content. The current regulatory framework is piecemeal, dealing with broadcast and non-broadcast advertising separately. The current regulatory system has worked well, but now a pro-active response to the challenges of convergence is required. What is needed is a one-stop-shop that can handle advertising complaints effectively across all media, simplifying the current regulatory complexity, and bringing real benefits to the industry, but more importantly consumers."

Such a change in the regulatory framework is permitted by the Communications Act 2003, which places a duty on the new regulator, Ofcom, to promote and facilitate effective self-regulation and to contract out its functions as appropriate.

The proposal is modelled on the long-standing and well-respected ASA system, but new legal entities would be set up behind a single ASA portal to deal with broadcast advertising. In accordance with the contracting-out procedures under the Act, Ofcom would act as the backstop regulator for the new self-regulatory system for broadcast advertising.

Thus the new system would operate in a co-regulatory relationship with Ofcom. The existing self-regulatory ASA system for print and other non-broadcast advertising would operate alongside the new self-regulatory system for broadcast advertising, but would continue to function as presently and would have no formal relationship with Ofcom.

Further information is available as follows:-

1. An AA website containing details of the proposed architecture of the new system and how they would affect industry and consumers is available at www.adconsult.info

2. The Advertising Standards Authority (ASA) is the independent self-regulatory body for non-broadcast advertising, sales promotions and direct marketing in the UK. It administers the Committee of Advertising Practice's British Code of Advertising, Sales Promotion and Direct Marketing. For more information, see www.asa.org.uk

3. Ofcom's consultation document is available at www.ofcom.org.uk

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