ARCON Refutes ADVAN’s Claims, Insists Its Steps Are Meant to Strengthening Advertising Industry
The Advertising Regulatory Council of Nigeria (ARCON) has responded to the notice of legal action issued against the regulatory body by the Advertising Association of Nigeria (ADVAN).
In a press statement signed by the Head, Corporate Affairs, at ARCON, Winifred Akpan, the regulatory body defended its position, asserting that its actions are aimed at improving the Nigerian advertising industry and protecting the interests of stakeholders.
On Advertising Contracts Between Advertisers and Other Shareholders
On Advertising contracts between Advertisers and other shareholders, contrary to ADVAN’s position, ARCON said it must be involved in advertising contracts between advertisers and other shareholders. The body clarified that its role is to establish minimum acceptable industry standards for advertising, advertisements, and marketing communications. According to it, these standards serve only as a framework to guide transactions involving stakeholders. The council emphasized that regulatory agencies in various industries establish standards to ensure fair practices.
According to the statement, “Some ADVAN members that engage in oppressive policies with impunity over the years are uncomfortable with the new fair-trade practice framework. They want to continue taking the industry for granted through exploitative policies, fleecing other stakeholders, something they cannot do in other countries. Why will they comply with payment policies in other markets and decline the same in Nigeria?” it queried. The council argued that these members resist the fair-trade practice framework because it prevents them from taking advantage of the industry through exploitative policies.
On Local Content Policy and the Ban on Foreign Models
The statement also reflected on local content policy and the ban on foreign models, which ADVAN frowned at and reemphasized its position. The council stated that its local content policy aims to enable Nigeria and Nigerians to benefit from advertising. This policy, it noted, requires a minimum local content percentage in all advertisements, encouraging organizations to use Nigerians as a critical element in their advertisements. ARCON asserted that the policy has improved the quality of marketing communications practices and allowed Nigeria and its citizens to benefit from the industry. The council expressed its disapproval of companies that heavily rely on imported advertisements, as it leads to job losses and significant revenue outflow from Nigeria.
“ADVAN Participated in the ARCON Law Review”
To establish that ARCON carried along every stakeholder in its law review exercise, the council defended its engagement with ADVAN during the review of the ARCON law, stating that the process involved input from all stakeholders and the public. The council emphasized that a public hearing took place at the National Assembly, where ADVAN representatives were present and made both oral and written submissions. ARCON refuted ADVAN’s claim that they were not engaged in the law review process, stating that the record is available for everyone to see. “The President of ADVAN lied that they made no input or submission on the law. It is surprising to hear ADVAN complain they were not engaged,” the statement read.
Response to ADVAN’s Position on Payment Policy
ARCON challenged ADVAN’s position on the payment policy, emphasizing that the industry-standard practice is to pay for services rendered within 45 days at most. The council questioned ADVAN’s reluctance to comply with this practice and suggested that they compare it with payment policies in other markets. ARCON accused ADVAN of offering unfair practices and unethical policies that endanger the Nigerian advertising industry.
Faults ADVAN’s position that some sections of the ARCON Law Are draconian
While accusing some ADVAN members of resisting changes that would improve the Nigerian economy and allow Nigerians to benefit from advertising, the council condemned the notion that certain sections of the ARCON law are draconian and asserts that these members cannot hold the industry hostage.
“The only reason some ADVAN members are against the policy is because of the equity and fairness the policy brings to the table. You have a right to hire and fire an agency or terminate any contractual obligation. However, whenever you terminate such contracts, do reconciliation, and honour outstanding obligations arising from the contract before bringing another agency to the business. This is the position of ARCON that ADVAN insists is interference,” ARCON emphasized.
ADVAN President’s Statement on the AOT Chairman
ARCON also criticized statements credited to the ADVAN President that a retired judge cannot make a valid judgment as the Chairman of the Advertising Offence Tribunal (AOT), calling it unfortunate and a display of a lack of understanding of the Nigerian legal system. “This goes for some of the opinions he has publicly expressed on critical industry issues at different times.”
ADVAN’s Claims of Lack of Engagement in Industry Issues
ARCON refuted ADVAN President’s claim that ADVAN was not consulted or involved in critical industry discussions. The council highlighted that ADVAN currently has representatives on the Advertising Standards Panel, the AISOP Committee, the Nigerian Advertising Code Review Committee, the Fellowship Committee, and the National Advertising Conference Committee, among others.
To this end, the regulatory council has vowed to take all necessary and legal steps to sanitize the Nigerian Advertising industry. The statement reaffirmed that ARCON remained the industry regulator and would not submit to any group or stakeholder that threatens to undermine the growth and development of the advertising industry.
