examples of legislation on different businesses

this is the link to access the different examples



https://www.oxfordshire.gov.uk/cms/sites/default/files/folders/documents/business/tradingstandards/CourtCases.pdf

Ofcom overview

Ofcom

Introduction

Ofcom is the communications regulator. They regulate the TV and radio sectors, fixed line telecoms, mobiles, postal services, plus the airwaves over which wireless devices operate. They make sure that people in the UK get the best from their communications services and are protected from scams and sharp practices, while ensuring that competition can thrive.

Ofcom operates under the Communications Act 2003. This detailed Act of Parliament spells out exactly what Ofcom should do – we can do no more or no less than is spelt out in the Act. The Act says that Ofcom’s general duties should be to further the interests of citizens and of consumers. Meeting these two duties is at the heart of everything we do.

Accountable to Parliament, they are involved in advising and setting some of the more technical aspects of regulation, implementing and enforcing the law.

Ofcom is funded by fees from industry for regulating broadcasting and communications networks, and grant-in-aid from the Government.

Examples of where Ofcom has been used:

Example 1: broadband:

Here is the first example, on the left it shows you an advert for the broadband prices before Ofcom inspected it and on the right it shows you how Ofcom have changed it in order to make it truthful and appropriate for advertising.

Example 2: TalkTalk:

Ofcom today fined TalkTalk and Tiscali UK £3 million after they incorrectly billed tens of thousands of consumers for services they had not received.

Ofcom opened an investigation into TalkTalk and Tiscali UK in July 2010 following complaints from over 1,000 consumers.

Ofcom found that both companies had wrongly issued bills to consumers for services they had not received, in particular to consumers who had closed their accounts. They did so in just over 62,000 cases between 1 January and 1 November 2010. Ofcom issued both with a legally-binding notification in November 2010 and set them a deadline of 2 December 2010 to take steps to sort out their billing problems.

However, while TalkTalk and Tiscali UK did take some important steps to comply with the rules, such as making changes to their customer records management systems, they still incorrectly billed almost 3,000 consumers between 2 December 2010 and 4 March 2011.

Ofcom has therefore issued TalkTalk and Tiscali UK with a financial penalty to reflect the seriousness of their breach of the rules and to act as a deterrent to them and other telecoms companies who must comply with the rules.

Compensated consumers

TalkTalk and Tiscali UK were also required to take steps to remedy the harm they caused to consumers by 2 December 2010, for example, by paying refunds to affected customers.

TalkTalk and Tiscali UK have paid over £2.5 million in refunds and good will payments to over 65,000 affected consumers.

Financial penalty

Ofcom is able to fine companies, which breach telecoms rules of up to 10 per cent of their relevant turnover.

Ofcom considers this to be a serious breach of the rules. However, Ofcom is issuing TalkTalk and Tiscali UK with a lower penalty than they might otherwise have been given, had they not taken steps towards complying with the rules, and taken action to remedy the harm they caused to consumers.

The fine is payable to Ofcom and passed on to HM Treasury. TalkTalk and Tiscali UK are required to pay it within 30 days of receiving the penalty notification.

Example 3: BBC

Committee of advertising practice (CAP)

Committee of Advertising Practice (CAP)

The UK Advertising Codes lay down rules for advertisers, agencies and media owners to follow.

They include general rules that state advertising must be responsible, must not mislead, or offend and specific rules that cover advertising to children and ads for specific sectors like alcohol, gambling, motoring, health and financial products.

Example 1:

In 2012 the ASA investigated a claim that an estate agent was “The number 1 agent in Cardiff”. They considered that consumers would understand the claim to mean that the advertiser had sold more properties in Cardiff than any other estate agent in the area. They noted that the advertiser had included properties as ‘sold’ once contracts had been exchanged, prior to completion. They also noted the market share figure was based on calculating the ratio of the number of properties listed to the likely properties sold, rather than on data that related directly to completed sales. The ASA concluded that the advertiser was unable to support the claim that they were the “Number 1 agent”, and concluded the ad misleading (SpicerHaart Group Ltd, 29 February 2012).

Example 2:

There is a non-complaint website where people haven’t complained but CAP have picked up on them for badly advertising. One company called wigshow.co.uk was picked dup on for not showing its geographical address/location on its website. The site failed to make it clear that it was in Hong Kong. In 2013 the ASA considered a further complaint that an image of a "Human Hair Capless Short Curly Wig" used on wigshow.co.uk did not match the actual product and that wigshow.co.uk breached the Code by charging customers for returning items that did not match their description.

Example 3:

The Committee of Advertising Practice (CAP)

27^th February → Today we're launching a public consultation of proposals to introduce new rules for the advertising of electric cigarettes.

25^th February 2014 → Today we and the Advertising Standard Authority (ASA) are announcing our intention to conduct new research and compliance work to ensure that the regulation of food and soft drink advertising continues to be effective and proportionate, particularly when it comes to protecting children.

2012 → Talk talks advert claimed to office the UK’s safest broadband but is was found to be misleading by the CAP. It was no safer than the offered products by other companies. 

2010 → Tesco breached the advertising code in a magazine advertisement for in-store bakeries. It is found to be not true. 

ASA investigates and complains

The Advertising Standards Authority (ASA) is a UK’s independent regulator of advertising across all media. The Advertising Standards Authority follows the advertising codes, which are written by the Committees of Advertising Practice. The ASA enforces these codes which prevent misleading, harmful or offensive advertisements by monitoring all media advertisement and if necessary intervening in wrongful activities. 

Example 1 - E cigarettes

The makers claimed the ingredients in their liquid, which was heated to create a vapour, were tested in the UK and had been subject to a toxicology risk assessment to confirm that all of the ingredients were safe and the vapour caused no harm, however the company claimed that it was “harmless” and because of this misleading advertisement the asa banned it. 

Example 2 - nestle 

‘The Advertising Standards Authority has upheld a complaint against Nestlé over its marketing of infant formula in developing countries. The complaint concerned a 1996 newspaper advertisement in which Nestlé claimed that it had marketed infant formula “ethically and responsibly” both before and since the introduction of the international code of marketing of breast milk substitutes in 1981.’

Issue 1:

The complaints sparked up because people knew that the product had high sugar content, therefore it was questioned weather the ad influenced poor nutritional habits by suggesting the children should eat it for breakfast every day.

Issue 2:

‘Nestlé systematically undermines public health messages by, for example, claiming its formula 'protects' babies, when babies fed on formula are more likely to become sick than breastfed babies and, in conditions of poverty more likely to die’

http://boycottnestle.blogspot.ae/

ASA & Virgin Medias 25 Banned Adverts

In only 18 months Virgin have managed to get 25 adverts banned for being "misleading" Excellent case study for your exam!

http://www.bbc.com/news/uk-19911432

http://www.bbc.co.uk/programmes/b006mg74/features/virgin-media-1

Also here Call-Of-Duty doing the same thing...

Print Media - Abi's AWESOME notes

Abi's Notes