Previously, in terms of the Code of Advertising Practice, such an undertaking was counted as an "adverse ruling" for the purposes of calculating sanctions.
Now, the Final Appeal Committee has said, "The directorate did not apply its mind to the merits of the matter and there was no adverse finding by the directorate against Brandhouse. In consequence, as there was no adverse ruling, this committee's jurisdiction in order to impose the sanction envisaged under Clause 14.3 of the procedural guide does not arise."
"This could encourage advertisers to give more undertakings," says Gail Schimmel, director of Clear Copy, a marketing regulation advisory service. "In the past, advertisers have been cautious about giving an undertaking which might 'count against them' if they felt that they were actually in the right. This ruling seems to mean that this will no longer be a risk."
Schimmel cautions, though, that another effect of the ruling could be reluctance on the part of the ASA Directorate to accept undertakings.
For more information, or a copy of the ruling, email Schimmel at az.oc.ypocraelc@liag.
