In the wake of recent developments following the official announcement by the Advertisers Association of Nigeria (ADVAN) to take legal action against the Advertising Regulatory Council of Nigeria (ARCON) regarding the new Advertising reform, ADVAN has reiterated its endorsement of any regulatory framework that fosters and drives economic growth. It clarified that their lawsuit against the apex regulatory agency is specifically targeted at aspects of the law that infringes upon the rights of their members.
Identifying sections of the law they deem unconstitutional, the association expressed the need for clarifications regarding the section that grants ARCON exclusive authority to determine, declare, supervise, and ensure compliance in matters concerning advertising, marketing, and communication in Nigeria.
They underscore the existence of multiple industry regulators overseeing advertising content for their respective members.
According to the association, its members operate in various industries and are subject to the appropriate regulatory bodies governing those respective industries noting that ARCON’s new law asserts its authority to regulate advertisers, which includes all corporate entities employing advertising, even if it is not their primary business focus.
The association states that ADVAN is seeking legal clarification on whether a regulator can extend its jurisdiction beyond its designated scope to oversee the clients or beneficiaries of the services provided by those it regulates.
In response to the definition of advertising as stipulated in the new ARCON law, the association noted that “ADVAN’s stance is that this definition of advertising is inaccurate.” They argue that it closely aligns with the definition of marketing rather than advertising. ADVAN is seeking legal clarification on whether a regulatory institution has the authority to unilaterally alter globally accepted definitions and terminologies without due process. They question whether regulatory bodies can independently determine their own interpretations and definitions for established and approved terms to suit their specific needs.
Also, regarding the regulation that grants ARCON the mandate to register and regulate marketing professionals, the advertisers’ association, while seeking clarification, argues that a business should be able to utilize the services of any individual or organization, without needing to be registered with the professional/regulatory body in charge, similar to other professions.
While questioning the legality of the established Advertising Offences Tribunal, the association states that the law establishing it, contradicts the principle of democracy, which explicitly outlines the separation of powers among the different branches of government.
The association contends that the law empowering ARCON to have access to their financial records is unconstitutional and infringes on the rights of its members. They are asking the court to clarify if a regulator of private business practice can demand access to financial records without a court order or compel organizations to disclose private business matters.
On the subject of payment terms, the association explains that it should be based on the contractual agreement between the parties involved and not mandated by legislation.
“As a member of the World Federation of Advertisers, ADVAN has researched payment methods globally, and findings from this research show that there are no legislation around contract and payment terms for stakeholders within an Industry”.
