ASA increases competitor complaints fees

According to the ASA, which has a mandate to administer complaints about advertising it has not increased its filing fees since 2006. With the new pricing, there will be no refund for any appeal matter and parties must bear the total cost of arbitration.

“In as much as the ASA has tried to make every effort to keep fees at a minimum and static, this is not financially possible so we are compelled to institute an increase. Currently the administration costs outweigh the fees we charge parties when filing a complaint. On appeal the successful party is generally refunded a portion of their appeal fee which then leaves us shouldering part of the costs,” says Thembelihle Msibi, ASA CEO.

To ease the administration cost burden on the ASA, the following fee increases and adjustments have been put in place, effective as of 1 August:

• First level competitor complaints - R8550
  
• Appealing a directorate ruling to the Advertising Industry Tribunal or the Advertising Standards Committee - R11 400
  
• Final Appeal Committee - R37 050
  
• Arbitration - R37 620
  
• There will be no refund for any appeal matter
  
• Parties must bear the total cost of arbitration

The ASA is funded by Print Media South Africa as well as the Marketing Industry Trust, which in turn derives its income from a 1% levy on media advertising.

“The alternative for complaints is to go to court, which is a lot more expensive,” explains Msibi. “Debates are becoming far more intensive legally. This and the changing legal environment requires greater use of legal experts to chair hearings and write up rulings,” she adds.

Most complaints are “quickly and effectively resolved” by the ASA Directorate (level 1), but occasionally consumer complaints are referred to the Advertising Standards Committee and competitor complaints to the Advertising Industry Tribunal (level 2). An aggrieved party may refer any decision of the directorate to the Advertising Standards Committee or the Advertising Industry Tribunal. Independent, legal professionals chair these committees. The decisions of these two committees may be appealed to the Appeal Committee (level 3). A former judge of the High Court, Mervyn King SC currently chairs this committee.

Yearly, about 93% of complaints are from consumers. The cost of administering consumer complaints from directorate to appeal level falls squarely on the ASA as consumers and associations representing public interest groups are exempt from paying.

“Consumer complaints will still be investigated free of charge,” concludes Msibi. “Our primary responsibility is towards the consumer”.