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Keeping your dawn raid guidance current
Unannounced inspections or ‘dawn raids’ are used by antitrust authorities to obtain evidence when there are suspicions that individuals or businesses have infringed the antitrust rules.
United Kingdom | Publication | November 2023
The UK’s Advertising Standards Authority (ASA) has published an update to its advertising guidance on misleading environmental claims and social responsibility (the Guidance). The updated Guidance aims to identify factors that make environmental claims in advertisements more likely or less likely to comply with the UK Code of Non-broadcast Advertising and UK Code of Broadcast Advertising (the Codes).
The Guidance affects both non-broadcast marketing communications in the UK (including online, on social media, in print and on posters) and broadcast marketing communications (such as on radio and television services).
The Guidance reflects the Competition and Markets Authority’s Green Claims Code, a guide to help businesses understand how to communicate their green credentials (as discussed in our previous article: Climate greenwashing liability). It also draws on principles established by the recent rulings by the ASA involving advertisers breaching the Codes by making positive environmental claims that exaggerate the business’s environmental credentials.
The Guidance contains a new section 3.1 entitled “Claims about initiatives designed to reduce environmental impact”, which illustrates how each rule in the Codes governing environmental claims may be applied.
Key updates
The Guidance presents the following ten key updates:
The rules are enforced by the ASA and if an advertisement breaks the rules, it may be withdrawn. If the ASA ruling is not followed, there are numerous sanctions it can deploy, depending on circumstances such as the media type being used to deliver the advertisement. As well as reputational damage, non-compliance can also result in prosecution and the ASA can refer the company to other statutory enforcement bodies for the further action. Prosecution can result in criminal liability, and the Trading Standards can impose unlimited fines, imprisonment, confiscation of financial assets, and suspension or revocation of a broadcasting licence. Ofcom can also impose fines, within its Regulatory Enforcement Guidelines, and withdraw a licence to broadcast.
The Guidance acknowledges the importance of advertising in facilitating the transition to more sustainable consumer behaviour and business practice. The ASA’s stricter interpretation under the Codes and severe penalties for failure to comply will be important for meeting the UK’s binding net zero targets.
If you would like any further information about the advertising rules and how they may affect your business, please contact the Environment, Safety & Planning team.
With thanks to Dani Bass for her contributions.
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