Family Planning - RACC clearance is required.

Advertisements are acceptable only from organisations and clinics which are registered with the relevant Local Health Authority, the Health Deleopment Agency/Health Education Board for Scotland or the Central Office of Information.

Careful scheduling will be advised.


Fictional Playlets

Fictional playlets (where characters express an advertiser's claims in dramatised form) are acceptable, provided that the scenario and people are not depicted as being real. Fictional playlets can involve voiceovers pretending to be, for example, 'genuine interviewers' and real-life 'customers' who discuss the advertiser's product/service, provided that listeners can recognise from the tone and style of the commercial that such playlets are pseudo-conversations and the voiceovers/people are 'cardboard cut-outs'.


Films/Videos -  RACC clearance is needed for 18-certificate films and videos.

If vox-pops are used in film/video scripts (voiceovers of real people who give their view on the film/video), the people concerned need to sign an 'RACC Testimonial Release Form'.

The tag 'certificate 15' or 'certificate 18' is needed in the copy. An indication of all other ratings is optional. Where an ad is playing out prior to a certificate being awarded, the tags "certificate/rating to be announced/confirmed" must be used.

Care with scheduling will be advised by the RACC in the case of copy containing violent or sexually explicit films/videos.


Financial Advertising

Credit and Lending - RACC clearance is required.

Advertisers offering products and services on credit must prove that they hold a credit licence. The RACC asks for a copy in the case of new advertisers submitting scripts.

The Consumer Credit (Advertisements) Regulations 1989 were replaced by the Consumer Credit (Advertisements) Regulations 2004 on 31st October 2004. We have summarised some of the key points for radio copy in as user-friendly a way as the Regulations allow. However, we urge you and your clients to become familiar with the new Regulations by downloading them and the 'Guidance on Advertisements' from www.dti.gov.uk/ccp/topics1/consumer_finance.htm

Our lawyers, Simkins Partnership, have prepared an interactive summary of the content and presentation rules for credit ads which we hope will make things clearer. Please find a link here 

'Frequently Asked Questions (FAQs)' can also be downloaded from www.oft.gov.uk . And, as currently, if you or your clients are in any doubt, RACC advises that you or they seek legal advice or definitive guidance from those responsible for enforcing the Regulations, i.e. local trading standards departments.

These Guidelines are neither a definitive nor a legal guide, and may need amending in light of experience.

KEY POINTS

1. Ads offering credit offers will no longer be classified as "simple", "intermediate" and "full";

2. The tags "ask for written details" / "written quotations on request" will no longer be required in ads;

3. Whilst the advertiser's name must appear in all credit ads, the advertiser's telephone number or postal address will no longer be required in radio ads;

4. Radio advertising is exempt from the new tag: "Your home may be repossessed…" for secured lending, so long as the advertisements are not broadcast in or around programming concerned with the promotion of lending or credit;

5. If an ad quotes the applicable interest rate or an APR, the "typical APR"*** must also be quoted; (see footnote);

6. If the APR is subject to change during the lifetime of the loan, radio copy will need to state "variable APR";

7. The range of APRs available could be stated in the advert, but only if the lowest APR (defined as the rate applying to at least 10% of credit agreements to be entered into as a result of the ad) and the highest APR are stated.

8. If ANY of the following three factors / 'triggers' are stated:

• amount of repayments (e.g."drive away a Saab for only £100 a month"); or
• other payments and charges; or
• total amount payable by the consumer

the following information (where applicable) MUST ALL be included:

• amount of credit
• deposit of money in an account
• cash price
• advance payment
• frequency, number and amount of repayments
• other payments and charges
• total amount payable by the consumer
• typical APR*** (see footnote)

9. You can now state the frequency and number of repayments (e.g."10 monthly payments") without having to include the information listed above in 8;

10. The typical APR*** (see footnote) MUST be included if ANY of the following factors are stated:

• frequency, number and amount of repayments
• other payments and charges
• total amount payable by the consumer
• any other rate of charge

11. The typical APR*** (The "typical APR" is the rate at or below which the advertiser reasonably expects to apply to at least 66% of agreements taken up after and as a result of the ad) MUST ALSO be included if:

• the ad states or implies that credit is available to consumers who otherwise might find it difficult to obtain credit, even if this is indicated only by the advertiser's name(e.g. "CCJs? No problem! Get a loan from LoansForEveryone.co.uk;
  Typical APR x%");
• the ad implies that the advertiser's credit terms are more favourable than corresponding terms in any other arrangement or than offered by any other advertiser(e.g. "For a low interest loan, come to LowerCostLoans.co.uk");
• if any incentive to apply for credit is offered;
  (e.g. "free cinema tickets").

12. All credit information in radio ads must be "clearly audible".

13. Where the advertiser is both the supplier and credit provider and the products/services are sold in less than four instalments, within 12 months, the CCAR and relevant tags do not apply.

14. Credit deals on cars (and other products and services) for business users are not subject to the CCAR, but the RACC will require scripts which feature monthly repayments to include a reference to the initial deposit, where applicable. In addition, a tag such as 'for business users only' must go in the copy.


Insurance/Asssurance

Check that products to be advertised are provided by those companies allowed to advertise.

For insurance advertising, all advertisements must be approved by an 'authorised person' (usually the compliance officer) as required by the Financial Services and Markets Act 2000. It is a criminal offence to broadcast an insurance advertisement unless the contents of the final recorded advertisement have been signed off by this 'authorised person'. The RACC flags this up on Script Clearance Forms with the following wording: 'The Financial Services and Markets Act 2000 requires that certain advertisements be approved by an authorised person within the meaning of the Act. This script approval is neither prejudicial to, nor does it replace, that requirement. A certificate of approval of the completed commercial by the authorised person must be submitted to each radio station. The radio stations should not broadcast the commercial without the approval certificate and this RACC Script Clearance Form'. On the stamped-approved script, the RACC writes the following: 'Approval by authorised person required, prior to broadcast/after recording'.

Copy must not suggest that the advertiser's product will invariably save the consumer money. Qualified copy such as 'You could save money off your car/home insurance in X circumstances' is acceptable, subject to satisfactory evidence.


Investments/Pensions

Check that products to be advertised are provided by those companies allowed to advertise (see BCAP Radio Advertising Standards Code, Rule 1.3, Section 3).

For investment advertising, all advertisements must be approved by an 'authorised person' (usually the compliance officer) as required by the Financial Services and Markets Act 2000. It is a criminal offence to broadcast an investment advertisement unless the contents of the final recorded advertisement have been signed off by this 'authorised person'. The RACC flags this up on Script Clearance Forms with the following wording: 'The Financial Services and Markets Act 2000 requires that certain advertisements be approved by an authorised person within the meaning of the Act. This script approval is neither prejudicial to, nor does it replace, that requirement. A certificate of approval of the completed commercial by the authorised person must be submitted to each radio station. The radio stations should not broadcast the commercial without the approval certificate and this RACC Script Clearance Form'. On the stamped-approved script, the RACC writes the following: 'Approval by authorised person required, prior to broadcast/after recording'.

Advice on tags in investment advertisements should be sought from the advertiser's compliance officer or the FSA.


Mortgages

Under "FSMA" (the Financial Services and Markets Act 2000), the FSA (the Financial Services Authority) took over responsibility for regulating mortgage providers, including their advertising, from the 31st October 2004. The FSA enforce section 3.6 of its MCOB rules (Mortgage Conduct Of Business) and this effects the content of radio advertisements for mortgages which the FSA terms "non real-time qualifying credit promotions". Whilst advertisers must ensure compliance with these rules, the RACC sets out some key points below which it hopes will help radio copywriters, producers etc.

Please note, however, that these points represent the RACC's interpretation of FSA rules and must not be taken as definitive or legally-qualified.

APPROVAL OF MORTGAGE ADVERTISEMENTS

Radio advertisements for mortgages (as with investment advertisements currently) will need to be "authorised" by an "authorised person" for the purposes of the FSMA 2000. This means that the advertisement must be "signed off" prior to broadcast and this is usually done by the advertiser's compliance department. To remind advertisers and broadcasters of this responsibility, the RACC will clear mortgage scripts with the following caveat:

The Financial Services and Markets Act 2000 requires that certain advertisements be approved by an authorised person within the meaning of the Act. A certificate of approval of the completed commercial by the authorised person must be submitted to each radio station. The radio station should not broadcast the commercial without the approval certificate and this RACC Script Clearance Form".

KEY POINTS FOR COPY

General

1. Advertisements must be fair, clear and not misleading and must not omit significant information.

2. Performance, interest or market conditions must be both relevant and recent.

3. Where features of a mortgage product are promoted, any relevant assumptions must be clearly disclosed. Note: End tags or caveats may not be sufficient to qualify prominent claims, as in the past. Particular care is needed.

Compulsory Information

4. The name of the firm/advertiser and either a postal address or a contact point such as a phone number, a fax number or an email address must be included in any radio advertisement. Exception: if the advertisement contains, as a maximum, the advertiser name, a logo, an address or contact point, and a brief factual statement of the advertiser's main occupation, there is no requirement to apply the MCOB rules. However, should these factors state or imply additional mortgage or pricing information, the exception will not apply.

5. If an advertisement refers to the benefits of mortgage credit, it must also refer to the possible disadvantages related to that benefit with no less "prominence". End tags or caveats may not be sufficient: care is needed.

6. Where a product offer is conditional upon other products being obtained from a specific firm, the advertisement must qualify this.

7. If the rate of interest is variable, the advertisement must not state or imply that it is fixed.

Risk Warning

8. Radio advertisements for mortgages for secured lending are exempt from the risk warning "Your home may be repossessed if…". Exception: if the advertisement appears within radio programming dedicated to the promotion of lending, the risk warning will need to be stated.

APR

9. The APR must be quoted as follows: "the overall cost for comparison is X% APR".

10. If the advertisement refers to any pricing information, it must state the APR statement as in 9 above.

11. If the advertisement refers, explicitly or implicitly, to credit being available to consumers who might otherwise suppose that their access to credit was restricted, it must state the APR statement.

12. If the advertisement is for more than on product, each with different APRs, all APRs must be stated.

13. If the advertisement promotes a product where the APR will vary, according to the circumstances of the customer, the APR quoted must be representative of that, or below which at least 66% of respondents to the advertisements would be charged.

14. Where the rate to be charged varies, according to the circumstances of the customer, the advertisement will need to state: "The actual rate available will depend upon your circumstances. Ask for a personalised illustration".

15. If the advertisement promotes a mortgage which has more than one rate which may or will apply during the contact, and any of those rates are mentioned, then all the rates must be quoted in sequence from the initial rate through to the end rate, followed by its period of application and a statement that the rate then changes. If any of these rates are variable, the advertisement must state this.

16. "Prominence": the APR statement must follow immediately after any other rate of charge, and without any other information in between.

Comparisons

17. Advertisements can offer comparisons with other products, provided that this is done on a 'like-with-like' basis and that the features compared are material, relevant, verifiable and representative. A denigratory tone of voice or style are not permitted. If the comparison is a special offer, the advertisement must state the end date. If the special offer has not yet begun, the advertisement must state the start date. Where relevant, the advertisement must state that the special offer is subject to availability of the qualifying credit.

Fees

18. If the product advertised includes arranging or giving advice, and a fee may be charged for these services, the advertisement must state the amount of the fee (as a cash amount or as a percentage). If the amount of the fee is not known, (e.g. it will depend on circumstances such as the consumer's credit history), a statement such as "fee for mortgage advice, precise amount will depend upon your circumstances but we estimate £X" will be required.

FSA Approval

19. The advertiser is not required to state in its advertising that its business is regulated by the Financial Services Authority, (or any other government body) in its advertisement. However, should the advertiser wish to do so, it must obtain advance written approval from the FSA or the relevant government body.

Restricted Words and Expressions

20. There are restrictions and conditions on the use of words and expressions, such as 'overdraft', 'interest-free", '0% finance', 'no deposit', 'mortgage guaranteed', 'pre-cleared', 'gift', 'present', 'early repayment charge' and 'higher lending charge'. An advertiser must ensure that its mortgage advertisement does not contain any of the afore-mentioned words or expressions, unless the relevant condition applies, as listed below:

 (1) the word 'overdraft' or any similar expression as describing any agreement for running-account credit except an agreement enabling the customer to overdraw on a current account;

and

(2) the expression 'interest-free' or any similar expression (such as '0% Finance' or 'Interest- Free Option') indicating that a customer is liable to pay no greater amount in respect of a transaction financed by credit than the customer would be liable to pay as a cash purchaser in relation to the same transaction, except where:

(a) the total amount payable by the customer does not exceed the cash price; or

(b) MCOB 3.6.26R (Multi-rate mortgages) applies, in which case the expression may be used in respect of any rate of charge of 0% provided that during the period in which the rate applies there is no interest charged and no increase in the amount of the mortgage loan;

(3) the expression 'no deposit' or any similar expression, except where no advance payments are required to be made on the loan;

(4) the expression 'mortgage guaranteed', 'pre-cleared' or any similar expression, unless the qualifying credit promotion (this includes a radio advertisement) invites entry into a contract that is free of any conditions regarding the credit status of the customer;

(5) the expression 'gift', 'present' or any similar expressions, unless there are no conditions which would require the customer to return the money or items that are the subject of the claim.

A non-real time qualifying credit promotion (this includes a radio advertisement) must:

(1) describe any early repayment charge as an 'early repayment charge' and not use any other expression to describe such charges; and

(2) describe any higher lending charge as a 'higher lending charge' and not use any other expression to describe such charges."

Correct as of 8/10/04


Savings and Deposit Accounts


Check that products to be advertised are provided by those companies allowed to advertise (see BCAP Code, Rule 1.3, Section 3).

For advertising of deposit and savings accounts, all advertisements must be approved by an 'authorised person' (usually the compliance officer) as required by the Financial Services and Markets Act 2000. It is a criminal offence to broadcast these types of advertisements unless the contents of the final recorded advertisement have been signed off by this 'authorised person'. The RACC flags this up on Script Clearance Forms with the following wording: 'The Financial Services and Markets Act 2000 requires that certain advertisements be approved by an authorised person within the meaning of the Act. This script approval is neither prejudicial to, nor does it replace, that requirement. A certificate of approval of the completed commercial by the authorised person must be submitted to each radio station. The radio stations should not broadcast the commercial without the approval certificate and this RACC Script Clearance Form'. On the stamped-approved script, the RACC writes the following: 'Approval by authorised person required, prior to broadcast/after recording'.

No specific tags are required. Claims about savings/interest must be general and backed by substantiation. It is unlikely that claims such as 'Our savings account has the highest interest rates' will be accepted unless detailed evidence can be provided.

Interest payable on savings must be factually correct and copy must qualify whether interest is gross or net of tax.

Building societies can make a reference to having no shareholders and being able to offer excellent deals but they are unlikely to be able to make a claim to the effect of 'X building society offers better deals than public companies because we have no shareholders'.


Debt Management

Advertisers offering debt management services must prove that they hold a Consumer Credit Licence and undertake to comply with the 'Guidance for Debt Management Companies' published by the Office of Fair Trading. The RACC will need to see a copy of the licence in the case of new advertisers submitting scripts.


Credit Repair Companies

Advertisers must hold a licence under the Consumer Credit Act 1974 and confirm compliance with the CCAR. Copy must not state or imply that county court judgements (CCJs) can be easily removed.


Firearms and Weaponry - This is a prohibited advertisement category.


Fireworks

Outlets wishing to advertise fireworks must provide an assurance that they are registered with their Local Authority or Trading Standards Department.

Advertisements must bear safety in mind, particularly towards children.


Flight Prices

Advertisements which include flight prices must quote the all-inclusive price, i.e. the total payable by consumers when they buy their ticket (which includes Airport Passenger Duty and any other mandatory taxes). Alternatively, advertisements may include the fare-only price, provided that this is followed immediately by the all-inclusive price.

Where there are additional mandatory taxes which are levied abroad but not paid at the time of buying a ticket, the advertisement must include the tag 'plus foreign taxes'.

Flight promotions by airlines or other advertisers, e.g. newspapers, may not be described as "free". Airlines can claim "get a return flight - you just pay £29 in taxes and charges" and newspapers can claim "collect the tokens to get a return flight - you just pay the taxes and charges". Where advertisers promote a reduced flight price, they must also clarify the price of compulsory charges, e.g. "get a return flight for just £1 - plus £29 tax".

Where an advertisement states a destination or departure airport, it should be made clear if it is not the official primary airport.


Food - Food and nutrition claims require RACC clearance.

Advertisements must comply with all relevant legislation, in particular the Food Labelling Regulations 1996 and the Food Safety Act 1990.

Copy and evidence for claims may be referred to an RACC professional consultant.

Advertisers may be advised by the RACC to seek a view on the acceptability of novel health claims for food from the Joint Health Claims Initiative (JHCI).

'Free' (See "Flight Prices" for more information on free flight offers)

Advertisements must not promote products or services as 'free' unless it can be shown that they can be supplied to listeners at no cost (other than postage or carriage or a non-premium rate telephone call).

A trial may be described as 'free', provided that any subsequent financial obligations are qualified in the copy (e.g. the cost of returning the products if dissatisfied).

If the service being promoted as 'free' is normally provided at no charge, the RACC takes the view that to promote such a service as 'free' is misleading. For example, an advertisement for a newspaper issued with a cd as a one-off gift may describe the cd as "free". However, an advertisement for a newspaper offering a regular supplement (e.g. a classified recruitment section) may not describe the supplement as "free". Instead, the supplement could be described as "inclusive/included".