Advertising Standards Authority
Debate between Lord Smith of Finsbury and Lord Palmer of Childs Hill
Lord Smith of Finsbury (Non-Afl)
Is it not a strength of a system where, if a regulatory body recognises that it has got something wrong, it can actually put it right?
Lord Palmer of Childs Hill
I thank the noble Lord for that. Indeed it is a strength, but it is also an inconsistency. It shows that there is a set of people in the ASA who are making decisions and then presumably another set of people come along and say, “That decision was not correct”. It does not generate respect for the decisions. When the Minister replies, will he say whether it matters that there is a lack of consistency in judgments or changes are made, which the noble Lord, Lord Smith, thinks is a virtue? Also, are there adequate guidelines about the use of experts in scientific and political beliefs? The noble Lord, Lord Lipsey, mentioned a particular Middle Eastern question which I do not have to hand, but are there experts from all sides of what is a ticklish problem for everyone in the international sector? I do not know, and perhaps the Minister can comment on that.
The noble Baroness, Lady Deech, mentioned in passing the Leveson inquiry into press self-regulation, and its drawbacks are a useful parallel to the ASA. I want to speak in a little more detail about that in the time I have than the noble Baroness, Lady Deech. Like the much-criticised Press Complaints Commission, the ASA has a chair appointed by the funding body, and an independent reviewer with a very limited remit. Leveson—vol. 1, page 219—criticised this model and lack of interest in and input from the public. He criticised press regulation because the standards were set by the editors.
The same is true of the ASA. The code is drafted entirely by advertisers. On page 1,624 of Leveson, he said that the ultimate code should be approved by an independent body. That is what the ASA should do as well. Leveson in vol. 4, page 1,759, says that good self-regulation requires,
“that the Chair and members of the Board are appointed in a genuinely open, transparent and independent way, without any influence from industry”.
The chair should be independent of any political party and an appointment panel should be used, including people such as the Commissioner for Public Appointments, for chair and board members, as mentioned by the noble Baroness, Lady Deech.
The Advertising Standards Authority, despite its eminent chair who I accept is doing a thoroughly good job—I have no criticism of the noble Lord, Lord Smith—offends against all these regulation criteria. Maybe it manages it but it does not make it right. The question for noble Lords and for the Minister, which is a point made by the noble Baroness, Lady Deech, is whether the practice of self-regulation is no longer the accepted norm.
We have talked about Leveson and the press. Now we are talking about the ASA. We mentioned the Shipman inquiry, which altered medical regulation. We mentioned the Clementi review, which altered the legal profession’s self-regulation. There is also the Etherington report, which heralds the demise of self-regulation in fundraising.
The ASA is funded by the industry; it is good that the Government do not have to fund it. Its chair is appointed by the Advertising Standards Board of Finance. In this case, it is a very good chair, but it is nice and comfy. Just because there is a good chair now does not necessarily mean that the chairs will always be as acceptable to many of us. The ASA is not subject to requests under freedom of information, which it would be in another guise. What is required is: governance by a board mainly from outside the industry; an appeal system; and—dare I mention it?—transparency. This could be achieved at the same cost by a statutory or consumer-led body funded by a levy on members. In this case, it is funded by a levy on members on a board that is self-regulated and which is not what we should be aiming for in this century.