ASA looking for a lifeline
A funding appeal has been launched to save the Advertising Standards Authority from financial distress. If self-regulation by the ad industry is not preserved, it could result in government stepping in
The technically insolvent Advertising Standards Authority (ASA) is trying to raise R5m in short-term bridging finance after creditors approved a business rescue plan. The rescue operation will include dramatically cutting running costs and reducing the number of administrative staff by almost half. A “Save the ASA” funding appeal has been launched, and leading blue-chip companies are being asked to stump up the money. Four reasons have been cited for the ASA’s parlous position. These are a lack of ongoing funding, poor membership participation, high operational costs and expensive litigation in a long-running dispute involving a weight-loss product. At a special AGM, the chairman of the ASA’s final appeal committee, retired judge Bernard Ngoepe, told stakeholders, including creditors and industry bodies that make up the ASA’s membership, that the regulation of advertising could not be wished away and that consumers — often unsophisticated or illiterate — need protection. He warned t...
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