There is growing awareness amongst regulators regarding the susceptibility of children and other impressionable audiences to certain types of advertising.
At the beginning of the month two new Advertising Standards Authority (ASA) codes came into effect which focus on safeguarding young consumers and promoting healthier consumption habits in New Zealand:
- The Children's Advertising Code (CAC) replaces the previous Children and Young People's Advertising Code (CYPAC); and
- The Food and Beverage Advertising Code (FBAC) replaces the food rules currently contained in both the CYPAC and the general Advertising Standards Code.
The new codes apply to any new advertisements in New Zealand from 1 August 2024 and for all advertisements in New Zealand from 1 November 2024.
The Children's Advertising Code
Key changes include:
- Age of children: in the CAC "children" are defined as individuals who are under the age of 16. Children under the CYPAC are all persons below the age of 14. Unlike the CYPAC, the CAC will not apply to food and beverage products, or advertising targeted at individuals aged between 16 and 18;
- Targeting: expanded criteria for determining whether an advertisement is "targeted" at children;
- Safety: more detailed guidance regarding children's safety;
- Disclosure: enhanced disclosure requirements for certain advertisements targeted at children;
- Fear/distress: expressly applying existing restrictions regarding unjustified fear or distress to advertising which targets children; and
- Apps/video game advertising: additional guidance requiring app and videogame advertisers to make it clear to children that in app purchases involve real currency.
The CAC aims to protect children from harmful advertising and maintains the key principles from the CYPAC being that advertisements targeted at children must be prepared and placed with a high level of social responsibility and be truthful, balanced, and not misleading.
The Food and Beverage Advertising Code
The FBAC will replace food and beverage rules currently in the CYPAC, and rules 1(h) and 2(g) from the general Advertising Standards Code. Key aspects of the FBAC include:
- Consumption: the encouragement of excessive consumption is restricted;
- Occasional foods: the FBAC prescribes the use of the Nutrient Profiling Scoring Criterion system to classify food and beverage products as "occasional" and prohibits advertising occasional foods or beverages that target children;
- Brand advertisements: the FBAC applies to brand advertisements in certain circumstances; and
- Sponsorship advertisements: the FBAC requires certain sponsorship advertising for occasional foods or beverages to comply with additional guidelines.
The FBAC applies to all advertisements in all media relating to food and beverage. "Food and Beverage" captures all consumable food or beverage products (other than alcohol). The code is comprised of two general principles which are supplemented by rules and guidelines. The first principle is that all advertisers must advertise food and beverages with a high standard of social responsibility to consumers and society. One of the key rules under this principle is that food and beverage advertisements must not undermine the health and well-being of individuals. The second principle provides that food and beverage advertising must not mislead and must be truthful and balanced.
Key Takeaway
Any person advertising food products, beverage products, or to children in New Zealand should think about reviewing their advertisements to ensure that they are compliant with the new codes.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.