The CAP Code is being extended to apply to material on organisations' own websites. The CAP Code is a code of practice governing the content of adverts and marketing communications. It is administered by the Advertising Standards Authority. At the moment, the Code applies to advertisements in newspapers, journals, posters, emails and text messages, pop-up ads, banner ads and keyword advertising with Internet search engines. The scope of coverage in the digital world had been limited in non paid-for space online. That is now going to change.
With effect from 1 March 2011, the CAP Code will apply to advertisements and other marketing communications on advertisers' own websites and in other non paid-for space online under their control. A three stage test will be undertaken to see if a particular advert is covered, but essentially businesses will be safest just to assume that any material about them or their goods or services on their own websites or on any social media website under their control will be caught.
Although the Code does not have legal force, it is best practice to comply with it, as failure to do so can result in bad publicity and ultimately an inability to obtain advertising space. This restriction on being able to obtain advertising space will move into the online world when the changes come into effect, as the ASA will co-operate with search engines to remove adverts that link to the non-compliant material.
Paul Gershlick, a Partner at Matthew Arnold & Baldwin LLP and editor of Upload-IT, comments: 'Businesses should consider these changes as part of an overall website review. Whilst these changes will add another layer to the regulatory requirements that businesses face, there are other important legal requirements that many websites don't yet comply with but should do. We regularly come across websites that don't comply with Distance Selling Regulations, E-Commerce Regulations, the Data Protection Act or other laws, or otherwise expose themselves by failing to take simple measures. Help is at hand and it doesn't have to cost a fortune. We have helped many of our clients through this online legal maze in a practical and cost-effective way.'
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