New rules for advertisers

The Committee for Advertising Practice (CAP) is looking to update its advertising codes to reflect new law. But has it gone too far, or not far enough?

On 26 May, the Consumer Protection from Unfair Trading Regulations (CPRs) and the Business Protection from Misleading Marketing Regulations (BPRs) came into force. The CPRs aim to protect consumers from unfair trading practices, including misleading advertising. The BPRs deal with misleading advertising on a business-to-business level, as well as comparative advertising. See our previous alert on the Consumer Protection regulations for more details of the new law.

The Broadcast Committee for Advertising Practice has now opened up a consultation on the changes it is proposing, to bring the TV and Radio Advertising Standards Codes into line with the new law.

While the non-broadcast version of the code (the CAP Code) has been amended without consultation, it is under review as a whole. Responses to the broadcast consultation may also, ultimately, serve to shape code rules on non-broadcast advertising.

The new code rules are intended to reflect the new law, not to impose additional burdens. However, there is likely to be keen interest in some of the changes.

• The CPRs introduce special rules for advertising classed as an 'invitation to purchase'. In order to avoid a misleading omission, which could amount to a criminal offence, advertisers are obliged to include a defined list of information in their 'invitations to purchase'. It has been hoped that this would be interpreted narrowly (so that, for example, only something akin to an advert incorporating an order form would be subject to these rules). No doubt to the alarm of advertisers, the amended codes use a much wider interpretation – an invitation to purchase is any advertising which quotes a price!
• The wording permitting marketers to make free offers conditional on buying other items has been deleted from the CAP Code. This reflects doubts over the legality of "buy one get one free" (BOGOF) offers under the CPRs. The CAP gave the green light last week by stating that BOGOF offers are still permitted. However, they have not clarified this issue in the new rules themselves and so some doubt must persist.

With the consultation closing on 22 July, advertisers and agencies will have to act fast to get their views across, either directly or through industry representatives.