The SCA has overturned a High Court decision that had essentially rendered the Advertising Standards Authority (ASA) toothless. A GroundUp report notes the SCA order was a settlement between the ASA and a company called Herbex, but it’s clear from the terms of the settlement that the ASA is the real winner in this case. The ASA is tasked with self-regulating advertising for the benefit of consumers.

Prior to the High Court decision delivered in May 2016, the ASA allowed consumers as well as competitors to file complaints against advertisements. The ASA was then able to investigate these complaints and make rulings, irrespective of whether the advertiser was a member of the ASA. These rulings were made public on the ASA website and distributed to make members aware that certain advertisers were not complying with industry standards. Advertisers were able to appeal rulings made against them.

The ASA’s investigations resulted in a number of adverse findings against health supplement companies like USN and Herbex dating back to 2005. After unsuccessful appeals against adverse rulings by the ASA, Herbex filed an application to limit the ASA’s authority, which led to last year’s High Court ruling.

The High Court agreed with Herbex and made an order that not only declared the rulings against Herbex void, but also forced the ASA to remove the rulings from their website. The High Court also interdicted the ASA from investigating any further complaints against Herbex. This left the ASA virtually powerless against any advertising by companies that were not ASA members, even for non-member adverts published by ASA members, notes GroundUp.

The SCA’s judgment overturns a substantial portion of the High Court’s order, essentially restoring matters to the situation as it was before May 2016.

Full GroundUp report

Advertising Standards Authority v Herbex