Jointly Promoting Advertising Self-Regulation in Chinamddb.apec.org/Documents/2016/CTI/SEM1/16_cti_sem1_004.pdfTitle: Microsoft PowerPoint - 16_cti_sem1_004_z03.5 - China self regulation

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2016/SOM3/CTI/SEM/004

Jointly Promoting Advertising Self-Regulation in China

Submitted by: Mars

Seminar on Sharing Good Practices and Experiences on Advertising Self-Regulation

Among APEC Economies Lima, Peru

22-23 August 2016

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© COPYRIGHT MARS INCORPORATED | CONFIDENTIAL

Judy Zhang

Jointly Promoting Advertising Self-Regulation in China


Content

Overview of self-regulation in Asia and China

Leading food company with a unique DNA

Driving responsible advertising in China

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Overview of self-regulation in Asia

• Asia is not homogenous, spanning from Istanbul to Tokyo, Siberia to Port Moresby• Advertising standards look very different across the continent: no one-size-fits-all• An increasing interest in self regulatory and co-regulatory industry-led advertising

standards


The status of self-regulation in Asia

Most advanced systems of advertising standards

Developing systems of advertising standards

Limited industry involvement in advertising standards

Advertising Standards Council of India (ASCI)

Japan Advertising Review Organization (JARO)

Advertising Standards Council of the Philippines

Advertising Standards Advisory of Malaysia

Advertising Standards Authority of Singapore

Updated Advertising Law encourages industry self-

regulation

Advertising Association runs a Board of Ethics to set common standards

Mandate from Law on Advertising 2012 to develop an

Advertising Appraisal Council and an industry code of conduct

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•India: The Advertising Standards Council of India (ASCI) is recognised by law and has MoU’s with government agencies. It has been the first port of call to deal with consumer/competitor complaints since 1985.

•The Philippines: The Advertising Standards Council of the Philippines is a highly respected body and has pre-screened ad copy for over 30 years.

•Malaysia: The Advertising Standards Advisory of Malaysia was established in 1977.

•Singapore: The Advertising Standards Authority of Singapore is an advisory council under the auspices of the Consumers Association (CASE).

•Japan: The Japan Advertising Review Organization (JARO) handles complaints and inquiries from consumers, competitors and other sectors and was founded in 1974.

More developed systems of ad standards


•China: 2015 advertising law encourages the development of industry self-regulation.

•Vietnam: Law on Advertising from 2012 mandates the development of an Advertising Appraisal Council and an industry code of conduct.

•Thailand: Advertising Association of Thailand runs a Board of Ethics to set common standards.

Developing systems of in Asia

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•Cambodia•Indonesia•Laos•Pakistan•South Korea•Sri Lanka•Taiwan•Etc.

Nascent systems/limited industry involvement in ad standards


Case Study: China

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The ‘New Normal’ & Rule of Law

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From high speed growth to a medium-to-high one From quantity and speed to quality and efficiency From investment driven to innovation driven Create a business environment that is international, market-oriented and ruled by law

Changing and complicated regulatory environment

Since 2014, Over 300 newly-issued or amended laws, regulations and rules like the Consumer Right Protection Law, Advertising Law and Food Safety Law.

Rule of Law

The New Normal


Amendment Journey of Advertising Law

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1994 2009 2014 2015

The Advertising Lawwas issued by President of China, taking effect in 1995

The Draft Amendment was drafted by SAIC and submitted to the Sate Council

1st & 2nd Review of the Draft Amendment by NPC

3rd Review by NPC and issued by President of China, taking effect on September 1st , 2015

SAIC: State Administration for Industry & Commerce

NPC: National People’s Congress

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Comprehensive Advertising Regulation System in China

Advertising Law

FoodAdvertising Regulation

OnlineAdvertising Regulation

Medical Apparatus Advertising Regulation

Medical Treatment Advertising Regulation

MedicineAdvertising Regulation

Veterinary Drug

Advertising Regulation

Agricultural Chemical

Advertising Regulation

Real Estate Advertising Regulation

Advertising Language Regulation


The enforcement – by AICs

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SAIC

Provincial AICs

City-level AICs

County-level AICs

Lower-level AIC Stations

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China’s new Advertising Law calls for industry self-regulation

Article 7Advertising industry organizations shall, inaccordance with the provisions of the laws,regulations and associations’ charters,formulate industry standards, strengthenindustry self-regulation, promote theadvertising industry development, andguide their members to engage in advertisingactivities in accordance with the law and boostthe ethical integrity of the industry

- CHINA’S ADVERTISING LAW


Regulation Self-regulation

Government supervision and industry self-regulation in China

Lower-level AIC Stations

County-level AICs

City-level AICs

Provincial & Municipal AICs

SAIC

SAIC: State Administration for Industry and CommerceAIC: Administration for Industry and Commerce

China Advertising Association (CAA)

China Association of National Advertisers (CANA)

International Chamber of Commerce China (ICC China)

Advertising in China

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• ICC China Marketing & Advertising Committee

• CANA’s Responsible Marketing Committee

• APEC Advertising Standards Forum

• Global Advertisers Week Responsible Marketing Declaration

Industry efforts in advocating and promoting self-regulation

2016

2015

2014

2011


Content




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Leading Food Company with Unique DNA

“The company’s objective is the

manufacture and distribution of food

products in such manner as to promote a

mutuality of services and benefits among all

stakeholders.”

– Forrest E. Mars, Sr. 1947

Our Founding Principles

We put our Five Principles into action in our

interactions and operations –generating genuine, mutual

benefits for people, pets and the planet

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Our Responsible Marketing Core Principles

Launched in 2007, the Global Mars Marketing Code for Food, Chocolate, Confections and Gum led global advocacy and commitment • Children under 12 should not

be marketed to

• Gatekeepers are central to our approach to responsible marketing

• We shall support consumers to make informed choices about our products and their lifestyles

• We do not use nutrition criteria to guide our marketing across media channels


MMC Training and Governance at Mars

All Mars associates understand and implement MMC• Add MMC as Mars New associates essential training content• Integrate MMC training in Mars functional colleague training

• 100% MMC license acquirement for all marketing associates• 100% MMC license acquirement for all communication and media agencies

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These are some of the areas where we have led the industry in responsible marketing

Mars Marketing Code

In 2007, we were the first to not advertise in media where >25% of the audience are children under 12 years old.

We have reduced saturated fat in our portfolio and are setting new targets for further reduction.

SaFa Reduction250 kcal per portionIn 2010, we committed to only develop single serving sizes of less than 250 kcal.

We are the first company to commit to using GDA labelling on our food and confectionary products (excluding gum) worldwide.

GDA Labelling


Mars Marketing Code - long history with track record

2007200720002000 20132013 2014201420122012

Mars actively involved in trade

associations, creating robust self-regulatory

approaches

First company to launch a marketing code and lead the

industry in not marketing to children < 12

Received an A-rating by the CSPI for not marketing to

children

Our ATNI rating

significantly driven by the

Code

Launched code’s third iteration -industry leading

positions

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Content





One of the biggest corporations in China

Wrigley

ChocolateDrinks

Petcare

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© COPYRIGHT 2011 MARS INCORPORATED | CONFIDENTIAL


True, legal and ethical

Pursues the concept of harmonious development of people, nature, economy and society

Benefits the company in terms of brand building, market penetration, and perceived innovation

Sculpts positive corporate image, strengthens corporate reputation and market competitiveness

© COPYRIGHT 2014 MARS INCORPORATED | CONFIDENTIAL

Mars public footprint in China

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2008200819901990 2016201620102010

China Development ForumBeijing Asian Games Expo 2010 ShanghaiBeijing Olympic Games

20142014

Boao Forum For Asia

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Marketing responsibly to consumers in China

100% of Mars

related brands in China have GDA labelling

99.8% of our chocolate or

confectionary products met the 250 calories per

portion

25% sodium

reduction from

2007-2012

100% of Mars brands

in China compliant with 25% threshold


Environmental protection logo displayed on all packaging of Wrigley gum products28

High standards in Mars products

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Jointly driving a responsible advertising environment

Commitment to Consumers and SocietyProvide safe and quality products with innovation

Commitment to Consumers and SocietyProvide safe and quality products with innovation

Drive Industry Growth and promote industry development thru responsible advertising

Drive Industry Growth and promote industry development thru responsible advertising

Work with Government and Associations to advance advertising environment

Work with Government and Associations to advance advertising environment

Responsibility Mutuality Freedom

© COPYRIGHT MARS INCORPORATED | CONFIDENTIAL30

How can you support us?

Please join us on 22 October 2016 in Hainan for the International Seminar on Responsible Advertising with

a launch of an industry pledge on advertising self-regulation during the China Advertising Festival

Boosting international good practice sharing on responsible advertising to support self-regulation environment building in China

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© COPYRIGHT MARS INCORPORATED | CONFIDENTIAL© COPYRIGHT MARS INCORPORATED | CONFIDENTIAL

THANK YOU