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Department of Policy and Business Practices

Content Monitoring and Review Section
Australian Communications and Media Authority (ACMA)
PO Box Q500
Queen Victoria Building NSW 1230

31 August 2007 CPI//hpe

Subject: Submission on the Australian Children’s Television Standards Review

Dear ACMA,

        As the world business organization, the International Chamber of Commerce (ICC) represents thousands of member companies and associations from some 130 countries, including Australia, operating in every major industrial and service sector. For more than 70 years, ICC has worked to promote high standards of business ethics through the development and dissemination of rules, codes and guidelines.

        I am writing to provide our perspective on the Children’s Television Standards (CTS) Review, specifically on the issue of advertising to children. ICC appreciates CTS’s dual objectives of providing for children to be specifically catered for in programming and of providing for the protection of children from possible adverse effects of television. Similarly, ICC appreciates the context of the CTS Review given concerns about possible links between food advertising and obesity. In September 2006, ICC itself issued a new revision of its Consolidated Code on Marketing & Advertising Communication Practice, in which ICC strengthened provisions on responsible and appropriate marketing to children. In October 2006, ICC introduced an additional Framework for Responsible Food and Beverage Marketing Communications to supplement the Consolidated Code, providing specific guidance for food and beverage marketers to adhere to high ethical standards for responsible practice. The Australian Association of National Advertisers (AANA) was the first in the world to adapt this framework into a local Food & Beverages Advertising & Marketing Communications Code in November 2006, which has been endorsed by the Australian Food and Grocery Council. Furthermore, ICC recognizes the important role that foreign investment plays in supporting children’s programming in Australia, and hence we feel our input valuable to the CTS Review.

        In brief, regulators must not attempt to assume the role of nutritional arbiters; to deal effectively and successfully with the complex cultural, social, and economic factors that influence obesity requires a different and much more comprehensive approach. Given that a broad consensus exists on the multi-factoral nature of the obesity problem, addressing the issue requires a multi-dimensional response. We feel that prohibitions, bans and restrictions do not promote awareness nor change behavior. The freedom to make informed choices from a range of options is a basic freedom that should not be violated. The key is rather to promote and encourage responsible marketing communications.

        ICC and the business community recognize the need for a legal infrastructure, targeting misleading or otherwise deceptive practices and geared particularly towards dealing with the so-called rogue traders. However, those legal mechanisms should always leave ample room to be complemented by effective self-regulatory measures, which are better suited to deal with ethical aspects in fast-moving markets. ICC applauds ACMA’s recognition of the role that self-regulation in Australia has played alongside law, and the review process should continue to recognize the synergies that can result from such a combination that regulatory intervention cannot, and will not, achieve by itself. In short, ACMA should continue to work with the industry concerned, not against it. Business has a fundamental interest in building and sustaining strong consumer confidence over the longer term.

        A variety of studies and policy statements by major regulatory institutions confirm that compliance with robust self-regulatory frameworks is high, and that these frameworks serve as effective and legitimate instruments in regulating commercial advertising. The ICC’s Consolidated Code and Framework set an internationally agreed standard for responsible marketing communications, with many countries then using this common baseline to go further on specific codes, responding as appropriate to national and cultural sensitivities. The codes developed by the AANA are a good example of how national codes complement ACMA’s regulatory authority. As demonstrated by the AANA’s current review of its Code for Advertising to Children, such codes of self-regulation evolve to address society’s concerns in a rapid, efficient, non-bureaucratic and cost-effective manner.

        Any outcomes from the CTS Review should incorporate the importance of providing consumers, including children, with more information – not restricting or eliminating it. Business and business organizations have repeatedly demonstrated their willingness to engage in dialogue, to respond to changing consumer demands, and to work constructively with other stakeholders to promote responsible marketing to all consumers, recognizing that consumers and society as a whole benefit from receiving truthful information about commercially available products and services geared to their level of understanding.

        We would welcome the opportunity to discuss these issues further and stand ready to assist in a dialogue aimed at practical and workable solutions.
 

Sincerely,

John F. Manfredi
Chairman, Commission on Marketing & Advertising
International Chamber of Commerce

Enc: ICC Framework for Responsible Food and Beverage Marketing Communications
ICC Consolidated Code of Advertising and Marketing Communication Practice