Question to the Department for Digital, Culture, Media & Sport:

To ask the Secretary of State for Digital, Culture, Media and Sport, what sanctions the Ofcom can impose on advertisers referred to them by the Advertising Standards Agency for consistently breaking advertising standards.

The Advertising Standards Authority (ASA) is responsible for writing and enforcing standards for advertisers through the UK Code of Broadcast Advertising (BCAP Code) and the UK Code of Non-broadcast Advertising and Direct & Promotional Marketing (CAP Code). In certain areas of these codes the ASA can refer cases to a number of different backstop regulators who have additional enforcement powers. The regulators that can be involved depend on the media in which advertising is published or the type of breach in question.

The ASA’s responsibility for the day-to-day regulation of broadcast advertising content is established under a co-regulatory arrangement with Ofcom. Ofcom can take enforcement action, such as sanctions, against broadcasters who do not comply with ASA decisions and/or where breaches are sufficiently serious.

For non-broadcast advertising, including newspapers, magazines, out of home and the majority of online advertising, the self-regulatory framework primarily applies to advertisers. Where further powers of enforcement have been deemed necessary, the ASA is able to refer certain cases to relevant statutory backstop regulators, such as to the Gambling Commission in the case of gambling advertising, the Competition and Markets Authority in relation to competition in digital markets, and to Trading Standards Services for misleading advertising. Those organisations are able to apply sanctions in line with their respective legislative powers.

Separately, as a result of the Health and Care Act, from 1 January 2024, Ofcom will have the power to sanction broadcasters and online advertisers that breach restrictions surrounding the advertising of products high in fat, sugar or salt on TV or via paid-for advertising online. Ofcom will have statutory responsibility for enforcing restrictions including powers to designate functions to a frontline regulator who will be responsible for the day to day enforcement of the policy. Ofcom will be able to take enforcement action, including the imposition of financial penalties on broadcasters and online advertisers.

The Government consultation on the Online Advertising Programme launched earlier this year and closed on 8 June. The Online Advertising Programme is examining the regulatory model for online advertising to ensure it protects consumers and minimises harm. This work includes looking at the role of platforms and intermediaries, as well as advertisers, to ensure the overarching system is coherent, supporting a sustainable, transparent and accountable online advertising market. We will be publishing a Government response to the consultation in due course.