The Advertising Regulatory Council of Nigeria (ARCON) has read the riot to advertisers belonging to the Advertisers Association of Nigeria (ADVAN) over its alleged penchant for unfair trade practices against other stakeholder in the advertising industry.
In a release obtained by BRANDPOWER, Dr. Lekan Fadolapo, the Registrar of ARCON, reaffirmed the council’s resolve to institute fair trade practices to the benefit of all practitioners and stakeholders in the advertising industry.
Below is a list of the issues addressed:
ARCON’S RESPONSE TO ADVAN’S CLAIMS
- ARCON said it must be involved in advertising contracts between advertisers and other stakeholders:
ARCON only set minimum acceptable industry, Standards for advertising, advertisement and Marketing communications. The standard is a framework
to guide all transactions involving stakeholders. All regulatory agencies set standards and framework for their industry. Some ADVAN members that engage in oppressive policies with impunity over the years are uncomfortable with the new fair-trade practice framework. They want to continue taking the industry for granted through exploitative policies, fleecing other stakeholders, which they cannot do in other countries. Why will they comply with payment policies in other market and decline same in Nigeria?
- ARCON Ban on foreign models:
The local content policy of ARCON is aimed at enabling Nigeria and Nigerians take benefits of advertising. The policy stipulates minimum local content percentage in all advertisement encouraging all organisations with intention to advertise in Nigeria to use Nigerians as part of the critical element of the advertisement. This policy has improved the quality of marketing communications practices as well as enable Nigeria as a country and Nigerians as citizens to take benefit of the industry. The attitude of some companies that crave for imported advertisement has led to loss of jobs in the industry, with Over N120b loss by Nigerian companies in revenue annually. We cannot allow this to continue.
- ADVAN Participated in the ARCON law review
The ARCON law is an act of the National Assembly that took into cognizance, input from all stakeholders and the public. The Public Hearing was done at the National Assembly, and all stakeholders attended. ADVAN was in attendance and made submissions orally and in writing. The President of ADVAN lied that they made no input or submission on the law. It is surprising to hear ADVAN complain they were not engaged. The record is there for everyone to see.
4. ADVAN position that the payment policy is unacceptable:
ADVAN should explain what happens in other market or clime as it relates to payment policy. It is an industry agreed standard. You get service and you pay for it within 45 days at most. Rather than pay, they offered to further improverish the other stakeholders with unfair practices and unethical policies, thereby endangering the Nigerian Advertising Industry. They should compare other markets with their position.
- SOME Sections of the ARCON law are draconian:
There is a legal process allowed within the constitution to challenge a law.
Some ADVAN members that have enjoyed the benefits of unfair business practices with impunity are resisting changes that will improve the Nigerian economy and allow Nigerians to take benefit of advertising. They cannot continue to hold the industry to ransom.
- ADVAN disagrees with ARCON’S Disengagement policy
The only reason some ADVAN members are against the policy is because of the equity and fairness the policy brings to the table. You have a right to hire and fire an agency or terminate any contractual obligation. However, whenever you terminate such contract, do reconciliation, and honour outstanding obligations arising from the contract before bringing another agency to the business.
This is the position of ARCON that ADVAN insist is interference.
- ADVAN President’s statement on the AOT Chairman
The statement credited to the ADVAN President that a retired Judge cannot make a valid Judgement as Chairman of a Tribunal is not only unfortunate but a display of his lack of understanding of the Nigerian Legal system.
This goes for some of the opinions he has publicly expressed on critical industry issues at different times.
- ADVAN has not been engaged or involved in industry issues
The ADVAN President’s statement lied that ADVAN was not consulted or participated at critical meetings where industry issues are being discussed.
For record purposes, ADVAN currently has 2 representatives on the Advertising Standards Panel (ASP), ADVAN had a representative on the AISOP Committee that worked on the Advertising Industry Standard of Practice, ADVAN had a
representative on the Nigerian Advertising Code Review Committee, Fellowship Committee, National Advertising Conference Committee to mention but few.
ARCON will take all necessary and legal steps to sanitise the Nigerian advertising Industry. ARCON remains the industry regulator and will not submit to any group or stakeholder that threatens to undermine the growth and development of the advertising industry.
