Watchdog gets powers to combat misleading web adverts

The Advertising Standards Authority (ASA) will get stronger powers to police internet adverts from next year, giving consumers better protection.

Currently the ASA can only take action on adverts that companies pay to place on websites. Marketing statements and promotions placed on a seller’s own website are exempt, as are statements made on social networking sites such as Facebook and Twitter.

However from 1 March 2011, the advertising watchdog will be able to take action on misleading, inaccurate or offensive marketing material across the web.

In its review of the digital remit of the Committee of Advertising Practice (CAP) code, the committee recognised that companies were increasingly using the internet to spread marketing messages in new and subtle ways.

The code will apply to all published material “directly connected with supply or transfer of goods, services”, and the committee noted that “a marketing communication may set out to sell something in a myriad of different ways. It need not necessarily include a price or seek overtly an immediate or short-term financial transaction”.

One application of this is that the regulator can assess whether companies have misused comments made by customers on social networking sites in their marketing material.

The new code also provides appropriate sanctions. Should an advertiser continue to publish material that the CAP has ruled against, an agreement is in place with the UK’s most popular search engines, including Google, Yahoo and Bing, to remove paid-for links to the content.

The ASA website will have what a representative called a “rogue’s gallery”, where companies can be named and shamed. Persistent offenders could find adverts from the ASA next to its listing on search engine results page that warn of the company’s advertising misconduct. The ASA will not be charged to place these adverts.

The remit will apply to all sectors and all businesses and organisations. Companies will have a six-month period of grace to train staff on the new code.

Lord Chris Smith, chairman of the ASA, said: “This significant extension of the ASA’s remit has the protection of children and consumers at its heart. We have received over 4,500 complaints since 2008 about marketing communications on websites that we couldn’t deal with.

“But from 1 March anyone who has a concern about a marketing communication online will be able to turn to the ASA.”