Note: This advice is given by the CAP Executive about non-broadcast advertising. It does not constitute legal advice. It does not bind CAP, CAP advisory panels or the Advertising Standards Authority.
In section 14, the CAP Code provides general guidance on advertisements for financial products and services but recognises that financial advertising is subject to numerous statutes and regulations. The background gives a brief overview of relevant legislation and the rest of the section mirrors, to some extent, the requirements set out in those regulations. For example, the Code requires marketers to present their products in a way that can be easily understood by the audience addressed.
In brief, the Code covers financial marketing communications that are not regulated by the Financial Services Authority (FSA), the Office of Fair Trading (OFT) or other government bodies or agencies. Most consumer credit, hire and brokerage ads are regulated by the Consumer Credit Act 1974 and the Consumer Credit (Advertisements) Regulations 2004. “Non-technical” aspects of consumer credit marcoms (for example, offence, social responsibility, superiority claims, fear and distress and competitor denigration) are likely to fall within the remit of the CAP Code and not be subject to statutory regulations. For example, in 2004 the ASA investigated a complaint about an ad that encouraged consumers to incur debt without considering the consequences: "Suffering from SAD (skint and depressed)? ... Find a bargain night out, a pampering fixer-upper or just say 'to hell with it' and stick it on the card... Take a duvet day.” The ASA considered that the ad was socially irresponsible (Egg plc, 14 April 2004).
Copies of the regulations are available at www.opsi.gov.uk/si/si2004/20041484.htm.
More detailed guidance in the form of answers to frequently asked questions (FAQs) is available on the OFT website at http://www.oft.gov.uk/about-the-oft/legal-powers/legal/cca/guidance.
CAP is unable to give advice on the law. The OFT recommends marketers to seek professional advice if they are unsure how their business might be affected.
Also see entries on “Financial Products and Services: Instant Access”, “Insurance” and “Motoring: Finance and Leasing”.
Last modified : 06 August 2010