Advertising and marketing self-regulation is a system by which the advertising, marketing, agency and media industry set voluntary rules and standards of practice that go beyond their legal obligations. Self-regulatory organizations (SROs) are responsible for enforcing industry’s commitment to these rules. Depending on the country, SROs provide some or all of the following services to their communities: respond to complaints, monitor advertising, initiate their own investigations, give copy advice — all aimed at efficiently helping prevent and correct problems. The International Chamber of Commerce’s Consolidated Code of Advertising and Marketing Communication Practice is a globally-applicable self-regulatory framework, developed by experts from all industry sectors worldwide. Since 1937, it has served as the cornerstone for most self-regulatory systems around the world. It continues to be used as a resource to update and align existing local codes and to help markets introducing self-regulation to make the first step. Most recently, it served as the foundation of the China Responsible Marketing Code endorsed by the Chinese advertising industry in April 2011.

Self-regulation offers consumers increased protection and a cost-effective, accessible and responsive alternative to legal avenues. By setting and enforcing best practice standards for industry and giving consumers clarity on the standards and recourse, self-regulation frees scarce government resources to help consumers and business by dealing with rogue traders and fraudulent practice. Self-regulation is also more flexible than regulation, permitting rapid but measured adjustment to new market factors like changing technologies. The world’s most effective self-regulatory systems have their voluntary codes enforced by a self-regulatory organization. Successful examples from around the world demonstrate the value of SROs in encouraging advertisers to implement self-regulatory ethical standards, enabling consumers to register complaints, and identifying issues that need rectification in a timely way.

A primary purpose of the Code is to protect consumers by clearly setting out the dos and don’ts for responsible marketing to ensure legal, honest, decent and truthful communications and practices. It does so by setting high ethical standards and best practices for a full range of marketing activities, including digital interactive media. The Code is industry’s globally accepted agreement on responsible marketing practices and ethical communications. Its worldwide and cross-industry relevance provide business – and those involved with research and education about business – a common and consistent starting point no matter what country you are in or what industry you represent.

One of the benefits of self-regulation is its ability to keep pace with change through regular revisions and updates. The 2011 Code is the 9th revision since 1937 and replaces the 2006 version. This new version covers many relevant and pressing marketing issues of the day, including privacy, use of digital interactive media, online behavioural advertising, marketing to children and environmental claims. The revised Code is applicable to an ever-expanding group of technology players, including mobile operators, search engines, application developers and information aggregators.

The new Code adds and strengthens privacy and marketing to children provisions. It covers use of digital interactive media extensively, introduces the first global guidance on online behavioural advertising, and updates its coverage of environmental claims. The General Principles and the five chapters of the Code were reviewed and updated to reflect current practice and anticipate future developments. The most dramatic changes appear in Chapter D, now entitled “Advertising and Marketing Communication Using Digital Interactive Media.” It introduces new definitions, requirements for transparency and choice, expanded provisions on respect for privacy and communications with children, and an entire section dedicated to online behavioural advertising. The chapter on environmental claims was updated to reflect recent changes to industry and regulatory approaches with some definitions revised and moved to ICC’s more detailed companion interpretive guide. The chapters on Sales Promotion, Sponsorship and Direct Marketing chapters were brought up to date with new terms and practice.

The Code is a valuable educational resource that is relevant to all industries and all countries. It provides a substantial foundation for highlighting best practices and ethical standards in marketing and advertising – with the goal that they be understood, adopted and adapted as needed over time. With the Code’s focus on best practices in consumer protection, it should be an indispensable resource for any business curriculum supporting legal, honest, decent and truthful communications.

The Code is available in print, as a downloadable pdf or using ICC’s online, searchable tool: codescentre.com. The general principles are the universal fundamentals – they apply to advertising and marketing practice regardless of the technique, medium or subject matter. The five chapters of the Code deal more specifically with sales promotion, sponsorship, direct marketing, digital interactive marketing, and environmental marketing. Definitions and guidance from the general principles are not repeated but they apply throughout the Code. Chapters on each of these topics provide guidance on advertising and marketing practices on which experts from all sectors of industry and all regions of the world agree. An easy resource for students, ICC’s Codes Centre website (www.codescentre.com) is a one-stop tool featuring: (a) a searchable, user-friendly online version of the complete Code; (b) an implementation guide; and (c) companion resources including translations and links and resources to self-regulatory codes around the world. Through ICC’s Business for Responsible Marketing and Advertising initiative, educators can download a classroom-ready module co-developed by ICC and INSEAD that illustrates essential principles of ethical communications using actual campaigns.

ICC’s Commission on Marketing and Advertising brings together the world’s top experts on self-regulation, regulation and ethical best practices in marketing communications. This group, spanning companies of all sizes and sectors from every region of the world, in consultation with ICC national committees and industry associations, identified marketing issues and concerns in consumer protection and developed the Code content to address them.

The Code functions within the framework of local, national or regional legislation. It supplements and supports regulation and legislation in a complementary manner. The Code always works in tandem with local and national regulation.

The ICC Code is a cornerstone of most self-regulatory codes and systems around the world. It is known as the “gold standard” of SR codes. National codes and sector specific codes usually strive to be compatible with the ICC Code, making adaptations where necessary to accommodate local needs and cultural differences. Sector specific codes often provide more detail that is directly relevant to their needs and issues. ICC’s interpretive guides also serve as the building block for sector specific commitments, as is the case with the ICC Food and Beverage framework.

Since 1937, the Code has served as the foundation and cornerstone for self-regulatory systems around the world. SROs (Self-Regulatory Organizations) annually handle tens of thousands of consumer complaints and issues. For example, the latest figures for members of the European Advertising Standards Alliance (EASA) show more than 50,000 issues addressed and redressed annually. These can range from complaints on taste and decency to false and misleading content in advertising. An example of an effective SRO in the US is the Children’s Advertising Review Unit (CARU) which handles hundreds of child-related issues annually and works very closely with the US Federal Trade Commission as well as the business community.

The Code is intended for use by all business and industrial sectors. Its new and expanded sections make it very relevant to all businesses involved with digital media. Its expanded section on children, make it relevant to any businesses involved with marketing to children and young people. Its detailed guides on environmental marketing make it very relevant to any business making green claims. Uses of the Code are very broad. It really can be used by everyone – in all industries – involved in the preparation and distribution of marketing communications.

In an effort to preserve and enhance consumer trust and confidence in business, the Code’s fundamental principles strengthen consumer protections in many ways. Among these are requirements for: Transparency and the need for open, honest, clear and responsible communications; Privacy and safeguarding of personal data; Online behavioural advertising and user control; Children and special considerations to shield them from confusion and harm; Respect for human dignity and standards of decency.

The best practices for responsible behaviour are universal; they are as applicable to business customers as they are to individual consumers.

Since the Code covers the most pressing and relevant marketing issues of the day, marketers will reference the Code as an integral part of their creative development, media planning and approval processes. Areas where the Code will be helpful to an advertiser or marketer include: Online behavioral advertising (OBA) – The OBA Code guidelines require clear and readily understandable information about how to use and collect data; the need for and use of choice mechanisms; and controls over sensitive data. Marketing to children – The Code specifically addresses the highly sensitive areas of privacy and protection of children, in all media but with special attention to digital media. Environmental – The Code provides detailed provisions for making responsible claims in the area of green marketing.

It will be very relevant, because it is easily adaptable to change. The revised Code is a living guideline. It contains built-in language and mechanisms that make it readily adaptable to new media, new uses of media and local needs, as required over time.