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. The Code sets high ethical standards for a full range of marketing activities, including digital interactive media with measures to protect children and consumer privacy. When implemented and enforced through national or regional self-regulatory organizations or used to expand their scope and coverage on new issues, the Code provides a solid, cost-effective and flexible foundation for consumer protection and helps extend best practices for responsible marketing across the globe. Self-regulatory codes of marketing and advertising have proven effective in setting the standards for and managing ethical behaviour. They are a meaningful complement to government regulation. The Code is drafted to work within different legal frameworks and is easily adaptable to local and cultural needs.

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.

Regulators seeking to protect their citizens from unethical marketing and advertising practices can encourage use of this Code as the foundation for their self-regulatory systems. Given the rapid changes in technology, tools and techniques used by marketers and advertisers, it is often difficult for detailed statutory regulations to keep pace. This self-regulatory Code addresses these fast-moving developments and will be proactively updated as trends emerge, providing realistic, practical solutions to protect consumers. When applied in multiple countries, the Code represents the best opportunity for harmonization of marketing best practices. It thus encourages domestic and cross-border commerce.

As the global foundation of best practices in marketing and advertising communications, the Code will be used by most self-regulators as the basis for evaluating existing policies/regulations and determining if they need to be updated or if new ones are required. The Code provides a solid, cost-effective and flexible starting point for considering ethical marketing standards that can be adapted to local needs. The Code contains self-regulatory approaches to the most pressing issues that consumers and regulators are raising. These solutions could obviate the need for any further statutory regulations. It is an excellent resource for best practices in sales promotion, sponsorship, direct marketing, digital interactive marketing including online behavioural advertising, and environmental marketing. There are complete chapters on each of these topics that provide guidance on advertising and marketing practices on which experts from all sectors of industry and all regions of the world agree. ICC’s new Codes Centre website is another valuable resource. It is designed to serve as 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 downloadable translations and links to self-regulatory codes and local resources around the world.

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.

Consumer protection in the new Code builds on many provisions in prior versions and also adds several new provisions. 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.

The general principles of the Code apply to all marketing practice regardless of the platform or technique. Requirements for truthfulness, honesty, decency as well as the principles on identification, testimonials and privacy apply to marketing whether in a newspaper, on a billboard or a social network from a smartphone. These principles need to be second nature to marketers and their creative teams regardless of the media tools involved. Recently added or enhanced guidance in the Code to note 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.

The revised Code is dynamic. It is revised and adapted to meet changes in technology and the environment. New interpretive guidance tools such as frameworks or a new version of the Code will be issued as needed so self-regulation remains a responsive and effective means to build and preserve consumer trust.