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23 June 2011

Classification of advertisements – an unnecessary regulatory burden

The Australian Association of National Advertiser’s system of self regulation is working effectively and introducing a classification system would add an unnecessary layer of regulation, says AANA in response to a Senate Committee’s report on the Review of the National Classification Scheme that was released today.

"As Australia’s peak advertising and marketing industry body, it is very concerning to us that an important inquiry such as this has failed to recognise the effectiveness of the current self-regulatory system.” said AANA Director of Codes, Policy and Regulatory Affairs, Alina Bain. "The recommendations have also failed to acknowledge the extra cost to taxpayers that the changes would impose and how the changes can be practically achieved.”

"Australia is not alone in having a self-regulatory system, in fact it is a common feature in many other countries. We are not aware of any jurisdictions where advertisements are subject to a classification system. Our self-regulatory system is working well, with AANA Codes being technology and platform neutral and already applying across the board to all media and all advertisers. The codes are underpinned by a robust and transparent complaints handling system, adjudicated by the independent Advertising Standards Board (ASB) with a proven high level of consumer awareness”, Ms Bain said.

The AANA Code of Ethics is currently under review by an Independent Reviewer appointed by AANA in 2010. An extensive period of public consultation shows a high level of satisfaction with the Code.

The complaints process is an effective enforcement system, as advertisers demonstrate a high level of compliance with decisions of the ASB, withdrawing advertisements which are found in breach of AANA Codes.

The Committee has recommended that the Australian Law Reform Commission (ALRC) consider their recommendations, as part of the current review of the National Classification Scheme. AANA will participate in the ALRC’s review.


For further infomation: Alina Bain, Director of Codes, Policy and Regulatory Affairs, AANA (02) 9221 8088