The Supreme Court of Appeal has dismissed a claim brought against the Advertising Standards Authority (ASA) by Telimatrix (Matrix Vehicle Tracking) for R6.5 million after the ASA ruled that the company had to withdraw its advertising.
Telematrix claimed it had suffered these damages as a result of having to withdraw certain advertising in compliance with an adverse ruling by the ASA Directorate. The ruling was reversed on appeal by the ASA's Advertising Industry Tribunal.
The ASA contended that no claim of this nature exists in our law against regulatory bodies such as the ASA, unless such bodies act in bad faith. This is particularly the case where there is an internal appeal process and where the aggrieved party has bound itself to adhere to the ASA's Code, as Telematrix, through its advertising agency, had done. The Court accepted the ASA's argument.
Deline Beukes, the ASA Executive Director, says: "The acceptance of this contention by the Supreme Court of Appeal brings to an end the unpleasant and protracted litigation to which the ASA has been exposed, and allows the ASA to continue its function of regulating advertising in the public interest.
"This decision is important not only for the ASA, but for all self-regulatory bodies."
The ASA is an independent body that ensures, in an impartial and objective manner, that advertising is legal, decent, honest and truthful.
