Source · Select Committees · Culture, Media and Sport Committee
Recommendation 86
86
We recommend that the ASA be given statutory powers to enforce the CAP Code.
Recommendation
We recommend that the ASA be given statutory powers to enforce the CAP Code. These powers should be considered as part of the Government’s upcoming Online Advertising Programme. Appropriate funding arrangements should also be considered to ensure that the ASA is able to act effectively on these enforcement powers. Monitoring
Government Response
Acknowledged
HM Government
Acknowledged
1. We acknowledge this recommendation is directed at the Government Online Advertising Programme. 2. We welcome the Committee’s support for the CMA to receive greater powers to enforce consumer protection law. We would highlight also that Ofcom has new powers applying to UK established video-sharing platforms, which place requirements on these platforms to provide their users with the means to help them disclose the advertising nature of their uploaded content. 3. We consider the combination of enhanced statutory and self-regulatory enforcement powers (the latter including ASA Online Platform Targeted Ad sanctions, which bring to the attention of ‘followers’ the fact of the influencers non-compliance), combined with new and impactful use of data science to monitor influencer ads at pace and scale, will prove effective in improving compliance outcomes in this aspect of regulation. To date, the ASA system has not had the need to refer an influencer or a brand to a legal backstop for repeated non- compliance, but we will work with the appropriate statutory regulatory where we consider it is necessary to do so. 4. The ASA system has submitted a response to the Government Online Advertising Programme, to which this Committee recommendation is directed. The response clarifies that the ASA system is committed to significantly enlarging its budget to respond to the capacity, technology and expertise challenges that all digital regulators are facing. Through an enhanced financial plan (2022-2025), the ASA system is committed to above- inflation investment to expand our workforce and deliver the expertise and technology to maximise our data science capability, in particular.