Johannesburg – The board of the Advertising Standards Authority (ASA) has voluntarily commenced business rescue proceedings and will be placed under supervision in accordance with the provisions of the Companies Act.
The ASA board said it took this decision to allow time for the process of restructuring the organisation, while reviewing and rebuilding its funding model.
ASA is a self-regulatory independent body, established by the marketing, communications and media industries and is mandated by those members to regulate against unfair and misleading advertising which could compromise consumers and impact unfairly on competitors.
According to ASA it has been safeguarding consumers’ interests and protecting freedom of commercial speech since 1968. It said it continues to enforce, adopt and uphold its Code of Advertising Practice in an impartial and objective manner.
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“ASA performs a fundamental public service by self-regulating advertising in South Africa. The implementation of a business rescue plan ensures that the public will continue enjoying protection from untrustworthy advertising material while we work on implementing a new funding model,” ASA chair Nkwenkwe Nkomo said in a statement.
“The organisation is supported by government and the marketing, advertising and media industries as a relevant organisation. ASA has applied for recognition as an Ombudsman under the National Consumer Protection Act. The business rescue process is, therefore, an ideal opportunity to overhaul the operations of ASA toward its imminent Ombud status."
Once accredited, ASA will be recognised in both law and jurisdiction. This will allow it to make findings or rulings on all deceptive and misleading advertising claims, thereby protecting consumers and raising standards of good conduct within the industry, in its view.
“All stakeholders would like to see the continued existence of ASA as a self-regulatory body for the industry. The decision taken by the board provides the time and space to make the necessary changes required to safeguard its sustainability and to ensure that we deliver a fit-for-purpose ASA to the industry at large in 2017,” said Nkomo.
The business rescue practitioner will be engaging with all relevant affected parties and will also inform the process of restructuring the organisation.
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