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ASA to target small businesses that exaggerate claims in online ads

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By The Drum Team, Editorial

October 27, 2012 | 3 min read

The Advertising Standards Authority (ASA) has revealed its plans to target small online businesses and “sole traders” that make exaggerated claims in their internet ads within the next year.

The move comes after the ASA said it receives of “thousands” of complaints about misleading online ads.

As such, the ASA has held talks with search engines to help develop a strategy crack down out deceptive adverts.

ASA chief executive, Guy Parker gave the Telegraph examples of such ambiguous internet ads.

The Telegraph piece mentioned the work of financial adviser website Unbiased.co.uk, which had reported that adverts claiming to be for independent companies were leading browsers to non-independent company websites.

Parker also gave the example of ads for items such as nappies that contain misleading information about the product's quality.

Parker went on to say that: “One of the challenges of regulating advertising is that anyone can advertise, particularly with the almost non-existent cost of putting up your own website.

“You can set up a small business in your back room and you can be up and running in a day. Many of these people haven’t got a clue about the ASA and about the advertising codes, and we have to make sure that we do all we can, within reason, to educate them and get them up to speed so they at least get the basics.”

With the new online remit is roughly now a third of our work, and 90 per cent of the complaints are about ‘misleadingness’,” he said.

He continued: “Many of these companies use Google ads words or other [organisations] to try and drive traffic to their websites. So there is a kind of pinch point there so that might be a good point at which we can market to them and say ‘here we are, don’t forget about us, there are things you do need to know.”

It is hoped the clampdown on online advertising will follow the changes made last year which broadened the ASA’s remit to regulate TV and radio advertising.

Correction: Due to an error of transmission in our original report it was suggested that Unbiased.co.uk was being investigated. They are of course, assisting the investigation. We are happy to set the record straight.

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