Advertising Standards Authority to regulate online ads

The Advertising Standards Authority (ASA) has been granted new powers to regulate all online adverts, in a move that will put increasing pressure on web site owners and advertisers.

The ASA is currently able to monitor online ads in paid-for spaces and sales promotions, but the Committee of Advertising Practice (CAP) has extended the watchdog's remit after a formal recommendation from various UK industries.

Under the new Digital Remit of the CAP Code (PDF), the ASA will oversee all web site marketing communications from 1 March 2011, regardless of the site's size or the nature of the organisation.

Adverts on social networking sites such as Facebook and Twitter will also be subject to scrutiny.

The ASA will have the power to remove any paid-for search advertising if the adverts are deemed misleading or socially irresponsible, or to ensure the protection of children.

The regulator will also have the power to place notices online highlighting an advertiser's continued non-compliance.

"This significant extension of the ASA's remit has the protection of children and consumers at its heart," said Chris Smith, chairman of the ASA.

"We have received over 4,500 complaints since 2008 about marketing communications on web sites that we could not deal with. From 1 March anyone who has a concern about a marketing communication online will be able to turn to the ASA."

The cost of the expanded remit will be met by an initial £200,000 contribution from Google and an extension of the 0.1 per cent voluntary levy on paid-for advertisements that currently funds the ASA.

Andy Burton, chairman of the Cloud Industry Forum and chief executive of Fasthosts, welcomed the news, saying that consumers will no longer be misled by false claims and statements or untrue price comparisons.

"This is a vital step forward for the industry, giving the consumer greater protection due to increased transparency of online vendor web site claims and advertising," he said.

"The ASA activity is aligned to our own belief that it is essential to build trust online by having transparency of online operations, as well as clarity of a vendor's capability and accountability."

The ASA has advised web site owners and advertising agencies to sign up to CAP Services to receive guidance and training to ensure that sites comply with the new rules before 1 March 2011.

Journalistic and editorial content, and material related to causes and ideas, except those asking for fund-raising donations, are excluded from the remit.

The ASA has already taken a tough stance with firms it feels are misleading customers.

BT was forced to stop running adverts in which it claimed that it could provide 'instant' internet services, while Orange was told to end an ad campaign in which it claimed that its 3G service covered "more people in the UK than any other operator".