Day 047 - 07 Nov 94 - Page 16

     
     1        overstated, leading to consumer disillusionment.
     2
     3   MS. STEEL:  When was the code actually brought in?
     4        A.  The additional clauses were added in 1990 and 1991, I
     5        think.  I can find that out easily, if you wish.  At a
     6        later stage, we published jointly with the government one
     7        document bringing together all the various codes.
     8
     9   MR. JUSTICE BELL:  Is there an association which is more or less
    10        the equivalent of yours for advertising agencies?
    11        A.  Yes, there is.
    12
    13   Q.   What is that called?
    14        A.  It is called the Institute of Practitioners in
    15        Advertising.  Its address, I can give you.
    16
    17   MR. JUSTICE BELL:  No.  I just wanted to know in general terms.
    18
    19   MS. STEEL:   If there were statutory regulations in place in
    20        advertising, that would be more costly for industry, would
         it not, if they went astray, broke those regulations?
    22        A.  I assume that when you say statutory regulations, you
    23        mean Acts of Parliament?
    24
    25   Q.   Yes.
    26        A.  The rules and codes of the ITC have statutory power
    27        already.  But I will assume you mean legislation.
    28
    29   Q.   What effect does that have?
    30        A.  What -- sorry, I am not sure of your question.
    31
    32   Q.   I am not quite sure that I understand.
    33        A.  Parliament has given the ITC the responsibility and the
    34        power to make regulations. They are not self-regulatory.
    35        They are not voluntary.  They are supported by a statute.
    36        If the ITC says, "You cannot do that", that is the end of
    37        it.  They have statutory power.
    38
    39   Q.   So if someone broke that regulation, what would happen?
    40        A.  That commercial would be taken off air. It almost
         certainly would not have got through to be shown on air,
    42        but it would be taken off air.  That happens from time to
    43        time, anyway.  The ITC says, "Out", and it goes out.
    44
    45   Q.   If an advertisement that was shown was later thought to be
    46        misleading or deceptive, or whatever, does the company that
    47        showed the advertisement or made the advertisement end up
    48        in court?
    49        A.  No.  The ITC removes the commercial, tells the people
    50        concerned that the commercial must be taken off air.  If a 
    51        television company ignored that instruction and ran the 
    52        commercial, they would be in court or, rather, they would 
    53        be fined and punished by the ITC.  It has statutory powers
    54        to do those things.
    55
    56   Q.   If there was specifically an Act of Parliament against
    57        misleading advertisements, if that was broken, then
    58        companies could end up in court?
    59        A.  They can now.  The Trade Descriptions Act certainly
    60        brings trading standards officers the power to take out