The Advertising Claims Board
The objective of the Advertising Claims Board is to provide a system of alternative dispute resolution to address and resolve challenges to advertising that might otherwise lead to litigation. With the complainant bearing the cost, the resolution system is designed to obviate the need for expensive and time-consuming court actions. While primarily designed to resolve disputes between competitors, the system is also available to any person, group or government agency.
Scope
The Advertising Claims Board determines complaints or questions involving truth or accuracy of advertising or whether a particular advertisement breaches the law, with reference to Section 1 of the AANA Advertiser Code of Ethics. It does not pursue trivial issues or complaints involving:
- questions of taste, morality or decency
- advertising that is the subject of litigation, court or government agency order
- unlawful business practices
- highly technical issues
- packaging claims
- issues covered by a specific industry code, or
- advertising which has been withdrawn or discontinued before the challenge.
Advertising Claims Board composition
The work of the Advertising Claims Board is undertaken by panels comprising three lawyers nominated by the Advertising Standards Bureau from those registered in its Register of Legal Practitioners as qualified in the areas of advertising and trade practices law. Nominations to particular panels are made with regard to the availability of individuals and any conflicts of interest. Complainants are required to indemnify panel members, the Advertising Claims Board and associated bodies against any claims arising out of determinations. Determinations are reached by a simple majority.
Advertising Claims Board Procedures
The process is initiated by a complainant filing a written complaint, together with a filing fee, requesting the Advertising Claims Board to investigate a particular advertisement. Before a panel is convened, the complainant is required to lodge an indemnity, a costs deed, plus a fee estimated by the Advertising Claims Bureau to cover costs taking account of the complexity of the case and the amount of material to be considered.
A complaint accepted for determination by the Advertising Claims Board is forwarded to the advertiser with a request for copies of the challenged advertising and a substantial written response within a specified period. The process allows for further submissions to be made by the complainant and advertiser within advised time frames.
The Board must decide on a complaint and issue a written determination within 15 business days of receiving the final submission. Although usually making its determinations on the basis of written submissions, the Board may also agree to meet with either or both parties in the interests of meeting a resolution.
If the Board decides that any of the advertising claims are not substantiated, it must provide the case decision to the advertiser with an invitation to produce an Advertiser Statement stating whether the claims will be modified or discontinued.
Immediately after receiving such an Advertiser Statement, or on not receiving a response from the advertiser within a nominated period, the procedures require the Board to issue a final case report to the parties.
The Advertising Standards Bureau reserves the right to make the final report publicly available, identifying the advertiser, the product and the subject matter involved, and describing the final decision and the reasoning behind it.
Consequences of Failing to Respond
If an advertiser fails to respond to advice of a complaint within the specified time, the Board proceeds to consider the complaint and make a determination. Where an advertiser does not agree to modify or discontinue an advertisement found in contravention of the Advertiser Code of Ethics, as well as publishing the case report, the Board can refer the case report to an appropriate government agency and/or forward it to media proprietors. More detailed procedures can be obtained by contacting the Bureau.
If you would like to make a complaint, please download the following forms:
Costs Agreement