Code
against misleading ads
The Central Bank, the Consumer Affairs Authority (CAA) and the advertising
industry are joining together to tackle the issue of misleading
and unethical advertising by companies offering high interest rates
for deposits from the public and in recent times, over the-counter
cures for health problems.
The
move also comes in the wake of a string of recent failures by so-called
finance companies or their directors vanishing with the funds leaving
many investors often government pensioners in the lurch.
Kenneth
Honter, President of the Accredited Advertising Agencies Association
(4As), at a recent meeting with Central Bank Deputy Governor W.A.
Wijewardene suggested that advertisements from financial institutions
should carry a logo or message indicating that it has been registered
by the Central Bank. "If an unregistered finance company wants
to advertise then the media could either not accept the advertisement
or make sure the public has enough information about the (status
of the) company."
The
crackdown on dubious advertisements by unregistered finance companies
is now part of larger efforts by the three agencies to stamp out
misleading or unethical advertising on a range of products. It also
applies to the use of women and children in advertisements. Kithsiri
Gunawardene, director general of the CAA, said the authorities last
week wrote to a particular healthcare company raising concerns about
its advertisement. In that advertisement, the company was promoting
a herbal product that claims to help alleviate chest pains and eliminate
the need to undergone surgery for heart ailments.
"I
wrote to the company asking them to justify this claim. A letter
was also sent to the Sri Lanka Medical Council seeking a medical
opinion on the claim," he said. The same company had recently
said it has medication to tackle the HIV virus. Another advertisement
that drew the CAA's attention was promoting a particular sausage
in which the company implies that "everyone" had grown
up on their brand of sausages. "We wrote to the company after
receiving a complaint from the consumer saying the advertisement
was misleading and deceptive."
While
the Central Bank recently wrote to media institutions alerting them
to the practice of unauthorised institutions canvassing money from
the public through the print and electronic media, and urging caution
in accepting these advertisements, it has also proposed a code of
best practices for media communications in the financial sector.
"We
have submitted this to the experts in the advertising industry and
they were of the view that a code of conduct should be adopted as
a guideline to develop self discipline within the industry rather
than trying to implement it as a law," said Central Bank Information
Director C.K. Nanayakkara. The proposed code has been approved by
the Financial Sector Reforms Committee for voluntary adoption by
media institutions and sent to the 4As. (See page 13 for draft proposal)
The
4As, the official body of advertising agencies in Sri Lanka, said
it was concerned and alarmed at the many instances of unethical
advertising appearing in the media. It said it was aware of the
many instances where women are used in "most unseemly situations"
to sell products which have absolutely no relevance to them and
children being enticed with false promises.
It
has already agreed to a Code of Creative Ethics which will govern
their creative conduct. "Most advertising agencies already
do adhere to a creative code of ethics and are conscious of their
social responsibilities," noted Honter from the 4As."The
objective of publishing our Creative Code of Ethics is to confirm
our commitment to ensure that the consumer is informed of our clients
products and services in an honest and credible manner.
We
are aware of the recent upsurge of protests regarding unethical
and dishonest advertising by certain unethical organisations and
the 4As will, as the apex body of advertising in this country, do
all we can to create an atmosphere conducive to truthful advertising,"
he added.
Panel
on unethical ads
The Sunday Times FT in collaboration with the 4As will
host a once-a-month column where readers can write in, send questions
or raise concerns about dubious, misleading or unethical advertisements.
The 4As will appoint a panel of experienced advertising professionals
who would take up readers' questions and concerns with the parties
responsible for questionable marketing communications for clarification
on claims etc.
The concerns
of the public will be conveyed to the party concerned and their
views sought. The 4As says it would do everything in its power to
help curb advertising that is false, of bad taste and harmful to
public sensibilities. The first column will appear on Sunday, February
15. Send your questions, concerns or comments to: The Business Editor,
The Sunday Times, 8, Hunupitiya Cross Road, Colombo 2 or email:
ft@sundaytimes.wnl.lk
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