Regulation of advertising and sponsorship is the responsibility of two statutory regulatory authorities: the BCI drafts relevant codes; monitors compliance; and imposes sanctions. The BCC adjudicates on complaints about alleged breaches of the codes. Code-compliance operates on primarily a complaints-based model, but unlike the other jurisdictions reviewed in this report, the BCI undertakes ongoing monitoring to ensure licensee compliance. This monitoring role may also reveal possible code breaches.
Obligations related to advertising and sponsorship for commercial radio licensees arise under the RT Act 1988 (Ie) and the BA 2001 (Ie) and under the BCI Advertising Code. It is the BCI Advertising Code which contains the most detailed regulation of advertising and sponsorship.
Regulation of advertising and sponsorship of commercial radio in Ireland has certain distinguishing features. In these, there is a similarity with the UK.
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The approach to advertising and sponsorship regulation is influenced by the statutory obligation to observe impartiality in all news and current affairs coverage. Relevant also is a prohibition on political advertising, as well as advertising for religious purposes or in relation to industrial disputes.
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Whilst advertising and sponsorship are recognised as legitimate revenue-raising activities, influence on, or interference with, the content of other programming is not tolerated. Hence, there are also specific rules to prevent disguised forms of advertising.
It is also striking that Ireland continues to impose limits on the amount of advertising which can be transmitted by commercial radio licensees.
Definitions
Regulation of advertising and sponsorship and other commercial practices is based on a comprehensive set of definitions located in the BCI Advertising Code. These definitions include ‘advertising’, ‘sponsorship’, ‘surreptitious advertising’ and ‘product placement’. There is also a definition of ‘commercial communication’ which is a catch-all definition to cover advertising, sponsorship, and other forms of commercial promotion, and which is used for all general rules found in the BCI Advertising Code.
The definition of ‘advertising’ is primarily confined to commercial activity, namely, the sale or promotion of goods and services. This would be consistent with the obligations of impartiality and prohibitions on political, and so forth, advertising.
The definition of ‘sponsorship’ contemplates the sponsorship of programs, but, unlike the UK, not channels (or stations). This may be more a reflection of a still relatively small market, as well as an undeveloped digital environment. A sponsored program will be one in which some or all the costs of production are met by the sponsor.
The definitions of ‘surreptitious advertising’ and ‘product placement’ reflect the scope for other commercial practices which may not fit into the recognised categories of advertising and sponsorship. These disguised advertising practices are prohibited.
Separation of commercial content from other programming
There is a fundamental principle of transparency in advertising and the rules reflect this principle. The principle of transparency requires:
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A clear identification of any commercial arrangements so that the listener has this information.
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The separation of commercial content from other content.
A prohibition on any advertiser or sponsor exercising any editorial influence over other programming content confirms that editorial independence is also protected.
These rules are reinforced by a further layer of more detailed rules:
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A prohibition on presenters and other on-air personnel advertising or endorsing any products or services during their program.
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A prohibition on persons who regularly present news featuring in any commercial communications (this applies to advertising and sponsorship). It is notable that this prohibition does not extend to those presenting current affairs programming. However, the first rule would prevent presenters of all types of programming engaging in any advertising or endorsement of products and services.
Sponsorship
Sponsorship is also subject to the principles of transparency and editorial independence. Hence sponsorship will also be governed by rules requiring clear identification and separation, and a prohibition on the exercise of any editorial influence. In addition:
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Sponsorship announcements cannot become a form of advertising. They are primarily a form of identification.
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Sponsorship of news, but not current affairs, is prohibited.
Regulatory obligations
Although the rules, in some instances, impose restrictions on persons other than the licensee, such as news readers and presenters, the regulatory obligations are imposed solely on the licensee. It will be a matter for the licensee to ensure compliance. The rules do not impose any specific obligations on a licensee with regard to internal compliance and due diligence measures.
4.5Completed or planned reviews
The Irish Parliament is currently considering a new Broadcasting Bill (the Bill) which will have a major impact on the regulatory arrangements described in this report. What follows is a brief review of those aspects of the Bill which are relevant to the matters discussed in this report.333 The Bill is expected to be passed in June or July 2009. We refer to the Bill as amended in the Select Committee on Communications, Energy and Natural Resources.334
One major purpose of the Bill is to combine in one act, the several acts which currently deal with broadcasting, dating back to 1960. The other major aspect of the Bill, as noted earlier, is to replace the BCI and the BCC with a new regulatory authority, the Broadcasting Authority of Ireland (BAI). This will mean that BAI will now combine the functions currently split between the BCI and the BCC, so that the BAI will also become the body to deal with complaints. The Bill also establishes two committees of the BAI: a Contract Awards Committee and a Compliance Committee. Notably, the members of these committees are not necessarily members of the BAI. Each committee will have eight members, four of whom will be appointed by the Minister for Communications, Energy and Natural Resources, and four of whom will be appointed by the BAI. The latter four will be two BAI members and two BAI staff members.335 Similar to the UK approach, the BAI is required to keep under review its performance (and the performance of these two statutory committees) to ensure that regulation does not impose unnecessary administrative burdens, or continue administrative burdens which are no longer necessary.336 It is interesting to note that the amended Bill now contains explicit mention of self-regulation and the possibility that the BAI could assist the establishment of a self-regulatory system for the drafting of codes and the establishment and administration of a self-regulatory system.337 However this provision does not seem to be intended for the regulation of traditional broadcasting. It has been included to fulfil obligations under the AVMS Directive and seems to be intended for use for non-traditional media or for content which may be transmitted from outside Ireland.338 Whilst it will be the BAI’s role to draft broadcasting codes and rules,339 the Compliance Committee will be responsible for monitoring and enforcing compliance by the licensee with the terms and conditions of its licence340; with statutory obligations; and with broadcasting codes and rules.341 It is interesting to note the reference in the Bill to the Compliance Committee’s role of ‘monitoring’. The Compliance Committee is also required to investigate and decide upon complaints made.
The Bill continues the statutory obligations currently applicable to radio broadcasting. Thus:
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The obligations referred to in sections 4.2.2.1 and above continue;342
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The obligation to include a minimum level of news and current affairs reporting on radio continues (see section above);343
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The limits on the amount of advertising which can be broadcast on a radio service continue (see section above);344
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The prohibition on political and religious advertising, and advertising which relates to an industrial dispute remains (see section above);345
Clause 42 of the Bill requires the BAI to draw up codes covering these matters and others. The Bill declares that the current codes (see section 4.2.2.1 above) will continue in force.346 One matter, to which the BAI must have regard, when drawing up a code, is “the desirability of maintaining the independence of editorial control over programme content”.347
Part Four of the Bill establishes a complaints process.348 Under the statutory process, complaints may be made under clause 48(1) about clause 39 matters; namely, impartiality of news and current affairs; harm and offence (previously identified as ‘taste and decency’); encroachment upon an individual’s privacy. A licensee is required to give “due and adequate consideration” to such written complaints provided they are made in good faith, are not frivolous and so forth. A licensee must also prepare a code of practice, to be publicly available, including on the Internet, dealing with the process for handling complaints. Records of complaints and replies must be maintained.349 It is observed here that it is the broadcaster itself, not an independent body, which is dealing with complaints. Under the current regulatory arrangements, complaints are made to the BCC directly, there is no legislative provision or expectation that complaints must first be made to the broadcaster. In fact, the Bill sets up a two-track process. Whilst clause 47 provides for a complaints process to the broadcaster, clause 48 clarifies that complaints can still be made directly to the BAI – in fact, to the Complaints Committee. However, the Complaints Committee has discretion to refer a complainant back to the broadcaster, to be dealt with according to the broadcaster’s clause 47 code of practice.350 Otherwise, the process for dealing with complaints by the Complaints Committee follows the process currently required of the BCC (see section above). In the case of multiple complaints, clause 48 also empowers the Compliance Committee to review the matter and to make such reports, including to the Minister, as it considers appropriate.
The Bill introduces a new sanction: a monetary penalty. It is intended that this will provide more flexibility for the regulator given the limited sanctions currently available (see section above). The penalty will apply to breaches of the statutory programming and advertising obligations outlined above (clauses 39 and 41) as well as breaches of codes or rules. Clauses 53-54 deal with the instigation by the Compliance Committee of an investigation and the process for investigating the matter. The Committee may recommend to the BAI a financial sanction of not more than 250,000 Euros. It is a matter for the BAI to apply to court for the imposition of the sanction.351 Clause 56 sets out matters to be taken into account by the BAI or the court in determining the amount of the sanction.
PART B: REPORT ON GERMANY; AN OVERVIEW
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