The proposals, which have still to be approved by Parliament, call for the ASA to act as a co-regulator for the broadcast advertising industry alongside Ofcom.
Significant changes to the existing ASA structure will be required, including the establishment of an Advertising Advisory Committee, independently chaired, to provide lay and expert input to another new body – the Broadcast Committee of Advertising Practice (BCAP). The BCAP will be responsible for creating the Code of Practice from which broadcast advertisers will regulate themselves.
Complaints about broadcast advertising will be handled by the proposed Advertising Standards Authority (Broadcast), or ASA(B), while a fourth new entity, the Broadcast Advertising Standards Board of Finance, or Basbof, will be responsible for collecting levies from broadcast advertisers to fund the new system.
Ofcom will retain backstop powers over the new system and could re-impose direct statutory control if necessary. It will also retain the ability to amend the broadcast advertising Codes in exceptional circumstances.
Ofcom will continue to be responsible for other elements of broadcast advertising regulation, such as the rules relating to the prevention of political advertising, the amount of advertising that can be shown on TV, and sponsorship regulation. There will be no change to Ofcom's role in regulating TV and radio programmes and licensing the broadcasters.
According to Ofcom's Chief Executive Stephen Carter:
"The UK's advertising industry through the ASA has successfully regulated its own actions in the non-broadcast environment for over 40 years. Extending that responsibility to create a 'one-stop-shop' for all advertising offers real benefits to consumers and advertisers alike."
Welcoming the announcement, the ASA's Chairman, Lord Borrie, QC, said that the new system would be as effective as statutory regulation:
"Combining the ASA's credentials and experience with Ofcom's legal backstop will create a robust system for regulating campaigns across all media and focused on maintaining the highest standards for the benefit of the public.
"Already this year we have had to turn away nearly 2,500 members of the public who have approached us with concerns about TV and radio commercials which are currently outside our remit. Having the ASA as a one stop shop for complaints about almost all advertising in the UK will mean a simpler and more accessible standards system for consumers and more consistent decision making for the benefit of the advertising business."
The news was also welcomed by the Advertising Association, a federation of 26 trade bodies representing the advertising and promotional marketing industry, including advertisers, agencies, the media and support services in the UK, an industry valued at more than £17.2 billion in 2003.
If approved by Parliament it is expected that the new system will become operational on 1st November 2004.