AdvertisingStandards

Canada 0809

Annual Report Self-regulation:Strength through Collaboration

The Spirit of Collaboration 3

Self-regulation: Strength through Collaboration 4

ASC Members 9

Consumer Complaints About Advertising:2008 Year In Review 12

2008 / 2009 Highlights 13

ASC Clearance Services: Working To Facilitate Regulatory Compliance 14

The Canadian Children’s Food And Beverage Advertising Initiative 15

Supporting Industry’s Future 15

Contents

Did you know? In a recent survey:

ASC is Canada’s independent advertising self-regulatorybody committed to creating and maintaining communityconfidence in advertising.

83per cent

of consumers say it is very important to have rules and regulations

that advertisers must follow*

63per cent

of consumers say an independentbody and/or the industry should

administer the rules and regulations*

91per cent

of ASC members say that ASC plays an important role in the

advertising industry**

80per cent

of ASC members say membership in ASC communicates that a company

is a responsible advertiser**

* Based on a 2008 / 2009 independent survey of 1,000 Canadians** Based on a 2008 / 2009 independent survey of ASC members

Over the past year, our industry continued to riseto the emerging challenges of a changing world.Working in partnership with our members andstakeholders, ASC worked diligently to ensure thatour mechanisms for advertising self-regulationremain strong and relevant.

We are gratified by the spirit of collaboration andindustry engagement that has become so vital toresponsible advertising self-regulation in Canada.We are stronger for the solid support of ASCmembers, the leadership and guidance from ourBoard of Directors and the participation of industryand public representatives who volunteer to serveon our numerous councils, committees, advisorybodies and trade dispute panels. Successful industryself-regulation is predicated on your dedication,your perspectives and your contribution. In short,self-regulation is only as strong as the peoplewho make it work. We extend our appreciation to the people featured throughout this report –volunteers, members, our Board of Directors andASC staff – for their ongoing contributions.

In this environment of economic uncertainty,consumers are scrutinizing advertising with a critical eye. Our consumer complaints processreveals that value-conscious consumers are comparing prices and searching for deals and discounts. And, we have seen a significant year-over-year increase in the percentage of consumercomplaints about allegedly misleading or inaccurateadvertising claims – a bellwether of confidence in advertising.

In this age of consumer scepticism, our mandateto build and maintain a climate of confidence inCanadian advertising is more important than ever.As always, we will rely upon the principles foradvertising that is truthful, fair and accurate as setout in the Canadian Code of Advertising Standards,and look to you, our stakeholders, for continuedsupport and participation.

Together, we will continue to nurture a vital andresponsive self-regulatory environment, striving tomeet the expectations of the public and theneeds of our industry in the year ahead.

20

08

–2

00

9A

nn

ua

lR

epo

rt

3

Advertising self-regulation is only as strong as the people who make it work. We extend our appreciation to the people featured throughout this report – volunteers, members, our Board ofDirectors and ASC staff – for their ongoing contributions.

Esmé Carroll2008/2009 Chair of the Board

Linda J. NagelPresident and CEO

The Spirit of Collaboration

Ad

vert

isin

gSt

an

da

rds

Ca

na

da

4

Self-regulation: Strength through Collaboration

National Consumer ResponseCouncil

Not Photographed

Barbara SchreierPublic Representative

Theresa CourneyeaPublic Representative

Michele ErskineDirector of MarketingCBS Outdoor

Stephanie Guran Marketing ManagerCBS Outdoor

Sharon MacLeodMarketing DirectorUnilever Canada

Margo NorthcoteCreative Consultant

Rick PregentGroup Creative DirectorDraft FCB Canada Ltd.

Consumer Response Councils (Councils) play a vital role in ensuring the integrity and viability of the advertising self-regulatory process.Composed of senior industry and public representatives, these independent volunteer Councils adjudicate consumers’ complaints aboutadvertising under the provisions of the Canadian Code of Advertising Standards, our principal instrument of advertising regulation.

There are currently five national and regional Councils across Canada.

Peggy BarnwellPublic Representative

Jayne PayetteVice-President, InfantNutrition Nestlé Canada Inc.

Suzanne Raitt Vice President ofInnovation and MarketingCanadian NewspaperAssociation

Rafe Engle (Chair)Barrister & SolicitorR.S. Engle ProfessionalCorporation

Roberta Albert Public Representative

Tim BinkleyAccount DirectorTaxi Canada Inc.

Renee BozowskyPublic Representative

Lisa JazwinskiGroup Brand Manager – Low ProofBacardi Canada Inc.

Norm KirkPublic Representative

Michael LioPublic Representative

Stephen LawsonSenior Legal CounselHudson’s Bay Company

Helena LazarVP Brand DirectorPublicis

Lorraine Hughes PresidentOMD Canada

Randy OttoPresidentPattison Outdoor Advertising

Teresa TsujiDistrict Sales ManagerThe Medical Post

Sandra Wheaton Corporate Manager,Programming Policies, Advertising & SponsorshipCanadian BroadcastingCorporation

Eleanor FriedlandPublic Representative

Heather NobesSenior Marketing ManagerVisa Canada

20

08

–2

00

9A

nn

ua

lR

epo

rt

5

French Canada Consumer Response Council

Not Photographed

Ronald BéliardPublic Representative

Roma DesjardinsPublic Representative

Sylvie GaudreauCommunications CoordinatorTQS Inc.

Annie PéloquinPublic Relations Services Reader's Digest Association(Canada)

Alternates

Roselyne René de CotretAgent, CommercialAcceptanceSociété Radio-Canada

Paul HétuVice-president Association canadienne desannonceurs Inc.

Sylvain MorissettePresident and GeneralManagerAssociation des agences dePublicité du Québec

Claude PerraultAdvisor, CommercialAcceptanceSociété Radio-Canada

Joëlle TurgeonAdvisor, CommercialAcceptanceSociété Radio-Canada

Alberta ConsumerResponse Council

Pat Sullivan (Chair)Public Representative

Anne Byrne Senior ConsultantPattison Outdoor Advertising

Gary Cobb Classified Ad Centre ManagerThe Calgary Herald

Sandra JonssonAccount ExecutiveCFCN Television

Louise Lutic Public Representative

Paige O’NeillRetail Property Manager Chinook Centre

Kate Reynolds-BraunAccount ManagerThe Globe and Mail

Cathy YostPublic Representative

Atlantic CanadaConsumerResponseCouncil

Elizabeth BraidMedia DirectorSGCI Communications Inc

Michel BertinSales Representative,Atlantic RegionRadio-Canada – TelevisionSales

Jean BrousseauPrincipal & VPBristol Group

Jay CalnanCreative DirectorNewcap Radio – CFRQ,CFDR, CKUL

Heather Crees V.P. Marketing McCain Foods (Canada)

Rick EmberleyExecutive ChairmanBristol Group

Kelly Greenwood Public Representative

Nancy G. Rubin Public Representative

Philippe ComeauCreative DirectorLG2

Lucienne LemirePublic Representative

Alykhanhthi LynhiavuPublic Representative

Raymonde Lavoie (Chair)Partner – Director, Strategy & CreativeDesArts Communication

Manon Beaudoin Director,Labour Relations, Employmentand Manpower Conseil québé-cois du commerce de détail

Sylvain DesrochersPublic Representative

Christiane DubéMarketing DirectorLa Presse

John D. GillDirector, National Accounts Médias Transcontinental

Diane LapointeManager, MarketingCommunications Gaz Métro

Brigitte LefebvrePublic Representative

Louis-Thomas PelletierCopywriterSid Lee

Veronica Piacek Director, Consumer Relations Pfizer Canada Inc.

Denis DompierrePublic Representative

Nancy Leggett-BachandGeneral Manager Hebdos Québec

Sandra Wheaton Corporate Manager,Programming Policies,Publicity and Sponsorships Société Radio-Canada

Ad

vert

isin

gSt

an

da

rds

Ca

na

da

Rhonda BagnallManagerTVB – Telecaster Services

pol Therrien, SeniorAdvertising StandardsRepresentative CanadianBroadcasting Corporation

Nicole Bellam (Chair)Vice-President, ASCClearance Services

Marisa BarberVP, Group Account DirectorYoung & Rubicam Group ofCompanies

Megan Coles Public Representative

Trish Duncan Public Representative

Dolly GerriorPublic Representative

Ruta RozentalsSenior Analyst, ASCClearance Services

Nicole BellamVice President, ASCClearance Services

Melissa CampeauCommunications Manager

Jean LarivièreSenior Analyst and ClientService Manager, ASCClearance Services

Dan PerryAnalyst, ASC ClearanceServices

Rhoda GubaAdministrative Coordinator, ASC Clearance Services

Children’s Clearance CommitteeCharged with the important responsibility of ensuring that broadcast advertising to children complies with the Canadian Association of Broadcasters’ Broadcast Code for Advertising toChildren, this committee includes both industry and public representatives.

6 Self-regulation: Strength through Collaboration

Martine ValleeDirector, Social PolicyCanadian Radio-television andTelecommunications Commission

Jen WilkinsonProject ManagerConcerned Children’sAdvertisers

Rick AndrewDirector, MembershipDevelopment

Claire PalardyAssistant (Quebec)

Jennifer FinjanExecutive Assistant / OfficeManager

Advertising Standards Canada StaffStaff members at ASC bring their experience and dedication to their respective areas of responsibility, individually and collectively contributing to the achievement of ASC’s mission,goals and objectives for responsible advertising self-regulation.

B.C. ConsumerResponse Council

Alexis Cylwa (Chair)Business Development ManagerPacific Press

John AzevedoSenior Manager, ConsumerMarketingNintendo of Canada Ltd.

Pat ConwayAccount ExecutivePattison Outdoor Advertising

Jan EvanskiCreative DirectorCorus Radio Vancouver

John LeckieBarrister and Solicitor Gowling Lafleur Henderson LLP

Simone Lis Public Representative

Dr. Yvonne Martin-NewcombePublic Representative

Sheryl O’TooleMarketing & CosmeticCoordinatorPeoples Drug Mart

Andeen PittMedia Director Wasserman & PartnersAdvertising

Anne SteelePublic Representative

Robert WyckhamPublic Representative

Alternates

Mike DarleySenior Manager,Traffic and AdvertisingStandardsCanadian BroadcastingCorporation

Bev Deeth Executive DirectorConcerned Children’sAdvertisers

Teresa GlogerAdvertising StandardsRepresentative CanadianBroadcasting Corporation

Josh KeshenCommercial AnalystTVB - Telecaster Services

Jean LarivièreSenior Analyst and Client Service Manager, ASC Clearance Services

Dan Perry Analyst, ASC ClearanceServices

20

08

–2

00

9A

nn

ua

lR

epo

rt

7

Cosmetic Advertising Advisory Group The Cosmetic Advertising Advisory Group (CAAG) includes representatives from industry, the public, Health Canada andASC. CAAG develops and proposes to Health Canada revisionsto the Guidelines for Cosmetic and Advertising Labelling Claims.

Lorinda Loftonbrook-Phillips (Chair)(Canadian Cosmetic, Toiletryand Fragrance Association)Director, Global Regulatory AffairsEstée Lauder Companies

Son Chau (Vice-Chair)(Canadian Cosmetic, Toiletryand Fragrance Association) Vice-President, Scientific &Regulatory AffairsL’Oréal Canada Inc.

Peggy BarnwellPublic Representative

Nicole BellamVice President, ASC Clearance Services

Luisa Carter-PhillipsHead, Cosmetics DivisionHealth Canada

Emily FelisattiSenior Regulatory Officer,Cosmetics DivisionHealth Canada

Gulnara Gabidullina(Canadian Cosmetic, Toiletryand Fragrance Association) Regulatory Affairs Department Head Procter & Gamble Inc.

Eva KlassenAssessment Officer, NaturalHealth Products Directorate(NHPD)Health Canada

Consumer Health Product Advertising Advisory Council Members of the Consumer Health Product Advertising Advisory Council (CHPAAC) provide adviceto ASC Clearance Services regarding consumer drug section policies and procedures. CHPAAC iscomposed of representatives from the advertising industry, health and medical organizations,Health Canada and other interested/responsible organizations.

Voting Members

Larry Thomas (Chair)(NDMAC) Vice-President and PublisherReader’s Digest Association(Canada)

Catherine Shand (Vice-Chair)(NDMAC)Senior Vice President, ManagingPartnerYoung & Rubicam

Peggy BarnwellPublic Representative

Mary Falbo(Outdoor Marketing Associationof Canada)Vice-President of BusinessDevelopmentPattison Outdoor Advertising

Gary GarlandExecutive Director, AdvertisingServicesMagazines Canada

Janet Isaac(NDMAC)Marketing Director - VitaminsWyeth Consumer Healthcare Inc.

Jayne JohnstonCommunications ManagerThe College of Family Physiciansof Canada

Natasha KuranProduct Information Officer,Therapeutic ProductsDirectorate (TPD)Health Canada

Colleen Leithman(Direct Sellers Association)Senior Legal Counsel, Legal &Corporate AffairsAvon Canada

Marc SpeirExecutive DirectorAllied Beauty Association

Amanda Wong(NDMAC)Regulatory Affairs ManagerGlaxoSmithKline ConsumerHealthcare

Liaison

Kathleen LjubisicDirector, Regulatory andScientific Affairs CanadianCosmetic, Toiletry andFragrance Association

Linda QuirkActing Director, Regulatory and Scientific AffairsCanadian Cosmetic, Toiletryand Fragrance Association

Ruta Rozentals Senior Analyst, ASC ClearanceServices

Anne Ledger WilkieVice-President and Head ofRA & QA Canadian Health FoodAssociation

Lorinda Loftonbrook-Phillips(Canadian Cosmetic, Toiletryand Fragrance Association)Director, Global RegulatoryAffairsEstée Lauder Companies

Richard Peirce Vice-President, Marketing andBusiness DevelopmentCanadian NewspaperAssociation

Carol RepchinskyEditor-in-chief, PublicationsCanadian PharmacistsAssociation

Elizabeth Roscoe Executive Vice-President,Strategic Policy & PublicAffairs Planning CanadianAssociation of Broadcasters

Nadine SabyPresident and CEOCanadian Association of ChainDrug Stores

Ken Stallman(Institute of CommunicationAgencies)Executive VP, ManagingDirectorCundari Health

Phyllis TanakaVice President, Scientific &Regulatory Affairs – FoodPolicyFood & Consumer Products ofCanada

Millicent ToombsSenior Project ManagerCanadian Medical Association

Ex-officio

Ann Sztuke-FournierManager, Advertising and Risk Communications Section,Policy and PartnershipsDivisionMarketed Health ProductsDirectorate, Health Canada

Nicole BellamVice-President, ASC Clearance Services

Charlotte WurzAnalyst, ASC ClearanceServices

Marie-Cécile EtoumanAdministrative Coordinator,ASC Clearance Services

Janet FeasbyVice President, Standards

Linda J. NagelPresident and CEO

Peter WhiteSenior Vice President,Operations

Kelly MarrinNational Standards Coordinator

Astrid D’SangesAdministrative andAccounting Assistant

Louise SwiftSenior Analyst, ASCClearance Services

Danielle LefrançoisCommunications Manager(Quebec)

Ad

vert

isin

gSt

an

da

rds

Ca

na

da

8 Self-regulation: Strength through Collaboration

2008/2009 Board Of Directors

Executive Committee

Directors

ASC is governed by a Board of Directors that includes senior executives from advertiser, communication agency,and media organizations, and a public representative. ASC’s Board establishes overall direction and guides theorganization to manage for its mission of responsible advertising industry self-regulation.

Randy Otto (Vice-Chair) PresidentPattison Outdoor Advertising

Esmé Carroll (Chair) Co-ChairZig Inc.

John Coyne (Vice-Chair) Vice President, General Counseland Corporate SecretaryUnilever Canada Inc.

Jennifer Dawkins (Past-Chair)Director, Advertising & Communications GeneralMotors of Canada Limited

Esther BenzieAssociate Marketing DirectorHair Care, Hair Colour, andCosmetics Procter & Gamble Inc.

Jim J.J. Johnston (Treasurer) General ManagerCorus Radio Vancouver

Ron Lund (Member at Large)President & CEOAssociation of CanadianAdvertisers Inc.

Steven Guiton ExecutiveDirector, Strategy & GovernmentRelations CanadianBroadcasting Corporation

Jani Yates (Member at Large)PresidentInstitute of CommunicationAgencies

Not photographed

Nathalie Kristo Brand Director, MaybellineNew YorkL’Oréal Canada Inc.

Jim BruceVice-President, MarketingWyeth Consumer Healthcare Inc.

Ferg DevinsVice President, Governmentand Public AffairsMolson Canada

Brett MarchandExecutive Vice-President & Managing DirectorCossette Inc.

Tammy ScottVice President, MarketingCommunicationsTELUS Consumer Solutions

Sandy MacLeodVice President, ConsumerMarketingToronto Star

Sylvain Morissette President and General Manager Association des agences dePublicité du Québec

Christina BisanzExecutive DirectorConsumers Council ofCanada

Deborah Rosser Vice-President, ConsumerPublishingRogers Publishing Limited

Lorraine Hughes PresidentOMD Canada

Patrick DickinsonVP, MarketingThe Bay

Jon MedlineVice President, Regulatory AffairsCanwest Media Inc.

Linda J. NagelPresident and CEOAdvertising StandardsCanada

Crawford WrightChief Compliance andPrivacy OfficerAstraZeneca Canada Inc.

20

08

–2

00

9A

nn

ua

lR

epo

rt

9

ASC Members

Adbeast Inc.Air CanadaAlberto-Culver Canada Inc.Allard Johnson CommunicationsAllied Beauty AssociationAssociation des agences de publicité du Québec

(AAPQ)Association of Canadian Advertisers Inc.Association of International Automobile

Manufacturers of CanadaAstraZeneca Canada Inc.Bacardi Canada Inc.Baker & McKenzieBandai America Incorporated, Canada BranchBayer Inc.The Beer StoreBenjamin Moore & Company LimitedBereskin & ParrBlake, Cassels & Graydon LLPBorden Ladner Gervais LLPBrewers Association of CanadaBrickworks CommunicationsCadbury Adams Canada Inc.Campbell Company of CanadaCampbell Michener & Lee IncorporatedCanada Dry Mott’s Inc. Division of Dr Pepper

Snapple GroupCanada Post CorporationCanada’s Research-Based Pharmaceutical

Companies (Rx&D)Canadian Association of BroadcastersCanadian Broadcasting CorporationCanadian Cosmetic, Toiletry & Fragrance

AssociationCanadian Marketing AssociationCanadian Newspaper AssociationThe Canadian Salt Company Limited

Canwest Media Inc.CARA Operations LimitedChanel Inc.Church & Dwight Canada Corp.The Clorox Company of Canada Ltd.Coca-Cola Ltd.COGECO Inc.Colgate-Palmolive Canada Inc.Community Media CanadaConcerned Children’s AdvertisersConsumers Council of CanadaCorbinPartners Inc.Corby Distilleries LimitedCorus Entertainment Inc.Cossette Inc.Coty CanadaCrayola CanadaCTV Television Inc.CV Technologies Inc.DDB Canada – TorontoDyson Canada LimitedEgg Farmers of OntarioEli Lilly Canada Inc.Enbridge Gas Distribution Inc.ERAC Canada Ltd.Fasken Martineau DuMoulin LLPFerrero Canada Ltd.Fido Solutions Inc.Frito Lay CanadaFunrise Toy CorporationGalderma CanadaGeneral Mills Canada CorporationGeneral Motors of Canada LimitedGeox Canada GlaxoSmithKlineGlaxoSmithKline Consumer HealthcareThe Globe and Mail

Government of CanadaGovernment of Ontario – Advertising Review

BoardGowling Lafleur Henderson LLPGrip LimitedH.J. Heinz Company of Canada LPHasbro Canada CorporationHeenan Blaikie LLPHershey Canada Inc.HomeocanHooey Remus LLP, Barristers & SolicitorsHudson’s Bay CompanyInstitute of Communication AgenciesInvesco TrimarkITOYS Inc.Johnson & Johnson Inc.Kellogg Canada Inc.K’Nex Industries Inc.Kraft Canada Inc.Kruger Products LimitedLabatt Brewing Company LimitedLang Michener LLPLCBOLegault Joly Thiffault S.E.N.C.Lego Canada Inc.Loblaws Inc.L’Oréal Canada Inc.Maclaren Corlett LLPMaple Leaf FoodsMaritz ResearchMattel Canada Inc.McCain Foods (Canada)McCarthy Tétrault LLPMcDonald’s Restaurants of CanadaMcMillan LLPMead Johnson NutritionalsMGA Entertainment Canada

MIJO CorporationMiller Thomson LLPMolson CanadaMoosehead Breweries LimitedNDMAC - Advancing Canadian self-careNestlé Canada Inc.Nielsen Media Research LimitedNintendo of Canada Ltd.Northern Response International Ltd.Novartis Consumer Health Canada Inc.OLGOsler, Hoskin & Harcourt LLPPadulo Integrated Inc.Panasonic Canada Inc.Paton PublishingPattison Outdoor AdvertisingPelmorex Media IncPepsi-QTG CanadaPfizer Canada Inc.Procter & Gamble Inc.PublicisThe Reader’s Digest Association (Canada) Ltd.RE/MAX Promotions Inc.Reckitt Benckiser (Canada) Inc.Reliance Comfort LPRetail Council of CanadaRogers Media Inc.R.S. Engle Professional CorporationS.C. Johnson & Son, LimitedSchering Plough Canada Inc.Shaw Communications Inc.Sleeman Brewing and Malting Co.Smith Nixon LLPSociété de l’assurance automobile du QuébecSpin Master Ltd.Spirits Canada/Association of Canadian DistillersSSL Canada Inc.

St. Joseph MediaStrauss Herb CompanyTD Bank Financial GroupThe TDL Group Corp.TELUS Communications CompanyTNS Canadian FactsToronto StarToronto Transit CommissionTranscontinental Media G.P.Transgesco S.E.C.Unilever Canada Inc.Visa CanadaWalt Disney Studios Home EntertainmentWelcome Wagon Ltd.Weston Bakeries LimitedWrigley CanadaWyeth Consumer Healthcare Inc.Wyeth PharmaceuticalsYum Restaurants International (Canada) LP

ASC members include the following leading advertisers, advertising agencies,media organizations and suppliers to the advertising industry:

10

Ad

vert

isin

gSt

an

da

rds

Ca

na

da

ASC MembersLeading advertisers, advertising agencies, media organizations and suppliers to the advertising sector demonstratetheir commitment to responsible advertising self-regulation through membership in ASC.

AstraZenecaCanada Inc.

Advertisers

CorbyDistilleries

Limited

Eli Lilly Canada Inc.

PMS 5395 CCMYK 100/44/0/76RGB 0/39/76

PMS 124 CCMYK 0/28/100/6RGB 238/178/17

PMS 201 CCMYK 0/100/63/29RGB 179/8/56

PMS 3425 CCMYK 100/0/78/42RGB 0/112/74

PMS HexachromeCMYK 1/1/1/100RGB 0/0/0

itoys Inc. Lego Canada Inc.

NorthernResponse

International Ltd.

Government of Canada

Canada Dry Mott’s Inc.Division of Dr. Pepper

Snapple Group Coty Canada

SSL Canada Inc.TD BankFinancial

GroupToronto Transit

Commission

“Industry support is thecornerstone of effectiveand responsible adver-tising self-regulation.Our core strength is ourmembership.”Linda J. NagelPresident and CEOAdvertising Standards Canada

20

08

–2

00

9A

nn

ua

lR

epo

rt

11

Associations

Colour Logo

All VECTOR ART

There is one simple and

correct way to use our logo,

on a white background.

This vector art should never

be altered in any way!

Always keep the vector art

“grouped” as one element.

Each “page graphic” has

been created with the drop

shadow and overlap cut out.

This was done intentionally

so that overlap errors would

not happen as the logo is

being used.

This logo is best represented

on a white background and

should only be printed on

white.

If the logo is printing on a

coloured background some

colours in the logo may be

lost due to the similarity of the

background and logo colours,

also the logo colours may

change.

Société de l’assurance automobile du

Quebec

Association of InternationalAutomobile Manufacturers

of Canada

PaduloIntegrated Inc.

Suppliers & Communications Agencies

WelcomeWagon Ltd.

S . E . N . C . R . L . – L . L . P.S . E . N . C . R . L . – L . L . P.

S . E . N . C . R . L . – L . L . P.S . E . N . C . R . L . – L . L . P.

Communication Agency Associations

Media

ShawCommunications

Inc.

76per cent

of members say self-regulation buildsconsumer confidence in advertising*

98per cent

of members agree responsibleadvertising is a component of being a

good corporate citizen*

95per cent

of members say a self-regulatory bodyminimizes government intervention*

* Per cent of respondents in 2008 / 2009 independentsurvey of ASC members

12

Ad

vert

isin

gSt

an

da

rds

Ca

na

da

The advertising industry has long recognized thatan effective consumer response mechanism isessential to fostering public confidence in adver-tising – ASC’s principal mandate. In keeping withthis commitment, ASC accepts and responds towritten complaints from consumers about adver-tisements currently running in Canadian media.Complaints that raise a potential issue under theCanadian Code of Advertising Standards (Code)are reviewed by independent volunteer bodies –the national and regional Consumer ResponseCouncils (Councils). Composed of senior represen-tatives from the advertising industry and the public,Council members serve a vital role in ensuring anobjective, balanced and fair process for adjudicatingconsumers’ complaints.

2008 Year in Review In 2008 consumers submitted 1,119 complaintsto ASC — down 23% from 2007. Of these,801 complaints met the criteria for acceptanceunder the Code. The balance (318) could not bepursued because they did not fall within the Codeacceptance criteria. These included complaints inwhich no specific advertisement was identified,

complaints about advertisements that were nolonger current, or did not otherwise meet theCode definition of advertising.

Complaints by Code ClauseOf the 801 complaints that were pursued, almostall involved concerns relating to the followingCode clauses:> Clause 14 (Unacceptable Depictions and

Portrayals),> Clause 1 (Accuracy and Clarity) and Clause 3

(Price Claims), and > Clause 10 (Safety).Complaints that raised issues under one of moreCode clauses were forwarded to ASC’s independent,volunteer national and regional Councils for adjudication. Councils reviewed 194 complaintsand upheld a total of 126 complaints about 66 advertisements.

While Councils reviewed fewer complaints in2008 (194) versus 2007 (241), Councils foundmore advertisements to have contravened theCode (66 in 2008 compared to 56 in 2007).

Complaints by Category of AdvertisingFor the fourth consecutive year, retail advertisinggarnered the highest number of complaints (154).Next were complaints submitted about automo-tive advertising and food advertising (includingadvertising by food manufacturers, food retailers,and restaurants) – each with 108 complaints.Complaints about advertising by service providersfollowed with 99 complaints.

Complaints by MediaAs always, advertising on television generated the highest number of complaints – 528. For thesecond year in a row, advertising on the Internetcame in second place with 155 complaints.Advertising in the out-of-home medium, includingbillboard and transit advertising was in third placewith 99 complaints.

Year of the Skeptical Consumer Not surprisingly, with the economic downturn thatbegan in the last quarter of the year, consumersare becoming more value conscious – comparingprices and searching for deals and discounts.

ASC has noted that consumers are scrutinizingadvertisements with an increasingly critical eye.This was reflected in their complaints to ASC. In2008, 43% of all pursued complainants cited concerns about allegedly misleading or inaccurateadvertising claims – a marked increase from 2007 (31%) and 2006 (29%).

Last year ASC heard from numerous consumersafter they did not get a product or service at theadvertised sale price or the discount they believedthey should have received; when they found anadvertised product to be unavailable; or whenthey found an offer to be unclear or incomplete.

ASC also heard from consumers who were skepticalabout advertising claims they believed could not besupported by the advertiser. For example, consumersquestioned whether sale prices and price compar-isons could be substantiated by the involved adver-tisers. They also questioned broad and unqualifiedclaims, such as “20% off every item.”

In this uncertain economic climate, ASC expectsthis trend of increased skepticism and scrutiny tocontinue in the coming year.

Consumer Complaints About Advertising: 2008 Year In Review

20

08

–2

00

9A

nn

ua

lR

epo

rt

13

More Frequent Reporting of UpheldConsumer ComplaintsIn December 2008, ASC began publishing, on amore frequent basis, case summaries of consumers’complaints that were upheld by ConsumerResponse Councils (Councils). Now, in additionto the quarterly Ad Complaints Reports, casesummaries of upheld complaints are posted onASC’s website after Councils have rendered theirdecisions and the appeal period has lapsed.

Increasing Interest in EnvironmentalClaims in Advertising Leads to NewInterpretation Guideline In response to emerging worldwide concernsabout environmental claims in advertising, and to reflect growing industry interest in the subject,in November of last year ASC developed a newInterpretation Guideline to the Canadian Code of Advertising Standards. The Guideline allowsConsumer Response Councils, in evaluating consumers’ complaints about allegedly misleadingenvironmental advertising claims, to take intoaccount the standards developed by theCompetition Bureau in conjunction with the

Canadian Standards Association as detailed in thepublication Environmental Claims: A guide forindustry and advertisers.

ASC Publishes Advisory on Political andElection AdvertisingASC regularly publishes Advisories on topicaladvertising issues to provide information to adver-tisers and to the public on the application of theCanadian Code of Advertising Standards (Code).In early 2009, ASC released an Advisory onPolitical and Election Advertising (available atwww.adstandards.com). While the Code does not permit ASC to accept and review complaintsabout political or election advertising, the Codespecifically states that Canadians are entitled toexpect that its standards will be respected bypolitical parties and governments. With this inmind, and because ASC frequently hears frommembers of the public expressing concerns aboutpolitical and election advertisements during electionperiods, ASC developed this Advisory to provideguidance to political parties and governments todevelop political and election advertising that istruthful, fair and accurate.

2008/2009 Highlights

Complaints by Top Three Code Clauses

400

300

200

100

0Clause 14

(UnacceptableDepictions and

Portrayals)

Clause 1(Accuracy andClarity) andClause 3

(Price Claims)

Clause 10(Safety)

Complaints pursued Complaints upheldAdvertisements about which complaints were upheld

423

5710

343

62 5423 7 2

Complaints by Media

47% Television (528)

14% Internet (155)

9% Out-of-Home* (99)

7% Flyers (77)

7% Newspapers (74)

5% Radio (56)

4% Other (41)

3% Direct Marketing (34)

2% Point-of-Sale (28)

2% Magazine (27)

100% TOTAL (1,119)

Complaints by Category of Advertising*

Retail

Automotive

Food/Supermarkets

Service

Government/Not-for-Profit

Personal & Proprietary

Recreation & Entertainment

Finance

Travel & Accommodation

34 154

38 108

7 108

11 99

7 82

3 68

3 49

3 29

5 27

Complaints pursued Complaints upheld

2008 1,119

2007 1,445

2006 1,040

2005 1,271

2004 1,540

Complaints to ASC by Year

Year Number of Complaints to ASC

* Top nine of 16 categories

* Includes such media as outdoor and transit

ASC President and CEO ChairsInternational Advertising Self-RegulatoryCouncil In May of 2008, the European AdvertisingStandards Alliance (EASA) – a non-profit organi-zation based in Brussels that functions as a singlevoice for advertising self-regulation in Europe –launched an International Council, established to foster the worldwide exchange of advertising self-regulation information and knowledge.

As the inaugural Council chair, ASC President andCEO Linda Nagel presided over the first meetingof the Council, during which the membersreviewed the self-regulatory developments in anumber of markets including Australia, NewZealand, South Africa, Brazil and Mexico and eval-uated the necessary tools and mechanisms to fur-ther drive effective self-regulation.

The Council was launched in recognition that noforum existed for advertising self-regulatory bod-ies to discuss common issues and concerns, andmechanisms to proactively address current andemergent challenges – both at local and interna-

tional levels. In the past, the practices of onecountry did not typically affect others, notedNagel. Now, in the global environment, issuesthat emerge in one country can quickly haveworld-wide impact on advertising self-regulation.

EASA’s International Council will help communicatebest practices and provide a global vision to helpself-regulatory organizations meet the challenges ofa rapidly growing international advertising market.

ASC Clearance Services helps advertisers to proac-tively ensure that their advertising messagesadhere to specific legislation, regulations andguidelines.

ASC Clearance Services analysts review advertisingsubmissions in five categories: alcoholic beverages,children’s, consumer drugs, cosmetics, and foodand non-alcoholic beverages.

In addition to copy clearance services, ASC alsooffers sector-specific workshops, designed to helpadvertisers and agencies navigate regulatoryrequirements that govern their area of advertising.

Upon request, ASC Clearance Services offers cus-tomized consultations and presentations designedto meet clients’ unique needs. By focusing on anindividual company’s brand, the ASC ClearanceServices team can identify potential advertisingchallenges and offer specific solutions.

14

Ad

vert

isin

gSt

an

da

rds

Ca

na

da

ASC Clearance Services: Working ToFacilitate Regulatory Compliance

2008/2009 Highlights (Continued)

Five Clearance Categories

Alcoholic Beverage Advertising(broadcast, under CRTC Code, plus print and out-of-home in B.C. and Ont. Only)

Consumer Drug Advertising(broadcast, mass print and other media)

Cosmetic Advertising(broadcast)

Food and Non-alcoholic Beverage Advertising (broadcast)

Children’s Advertising(broadcast, print and other media)

In February, 2008, ASC released the individualparticipant commitments under the CanadianChildren’s Food and Beverage AdvertisingInitiative. First announced in April 2007, this is a voluntary initiative by 17 of Canada’s leadingfood and beverage companies that have committedto use their creativity and marketing activities topromote and support healthy dietary choices andhealthy lifestyles to children under 12 years ofage. To ensure transparency and accountability,ASC, as program administrator, is responsible forapproving each company’s individual commitment,and for conducting and publishing an annualaudit to evaluate compliance.

Participants> Burger King Restaurants of Canada, Inc.> Cadbury Adams Canada Inc

> Campbell Company of Canada> Coca-Cola Canada> General Mills Canada Corporation > Hershey Canada Inc.> Janes Family Foods Ltd.> Kellogg Canada Inc.> Kraft Canada Inc.> Mars Canada Inc.> McCain Foods Canada> McDonald’s Restaurants of Canada Ltd.> Nestlé Canada Inc.> Parmalat Canada Inc.> PepsiCo Canada> Unilever Canada Inc.> Weston Bakeries Limited

To find out more, visit www.adstandards.com/childrensinitiative.

Robert E. Oliver Scholarship WinnerThe Robert E. Oliver Scholarship, first awarded in1986, was established to promote the professionalpractice of advertising. It commemorates Robert E.Oliver, one of the pioneers in Canadian advertisingself-regulation and the first president of theCanadian Advertising Advisory Board (ASC’s former name).

This cash award recognizes individuals with outstanding academic achievements, who have anexemplary record of service to the community andwho plan on pursuing a career in advertising ormarketing.

In 2009, ASC awarded the scholarship toAlexandra Warner, who is in her fourth year of aBachelor of Business Administration program atthe University of New Brunswick in Saint John. Inaddition to her outstanding academic achieve-ment, she also volunteers with several organiza-tions, including Stand Up Against Poverty andWorld University Service of Canada.

20

08

–2

00

9A

nn

ua

lR

epo

rt

15

The Canadian Children’s Food And Beverage Advertising Initiative

ASC Clearance Services Holiday Meet & Greet and Seminar, Loews Hotel Vogue, Montreal,

December 9, 2008

ASC Clearance Services Holiday Meet & Greet and Seminar, Sheraton Centre Toronto,

December 4, 2008

SupportingIndustry’s Future

Advertising Standards Canada is the independentadvertising industry self-regulatory body committedto creating and maintaining community confidencein advertising. ASC members – leading advertisers,advertising agencies, media organizations andsuppliers to the advertising industry – are committedto supporting responsible and effective advertisingself-regulation.

Through ASC Clearance Services, ASC reviewsadvertising to facilitate compliance with specificlaws and regulations in five regulated categories– alcoholic beverages, children's, consumer drugs,cosmetics, and food and non-alcoholic beverages.

This publication is printed on FSC-certified recycled paper.Elle est également disponible en français. Veuillez communiqueravec NCP pour en obtenir un exemplaire.

Toronto OfficeAdvertising Standards Canada175 Bloor Street EastSouth Tower, Suite 1801Toronto, ON M4W 3R8Phone: 416-961-6311Fax: (416) 961-7904www.adstandards.com

Montreal OfficeAdvertising Standards Canada2015 Peel StreetSuite 915Montreal, Quebec H3A 1T8Phone: (514) 931-8060Fax: (514) 931-2797www.adstandards.com

FSC Logo