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Pledges, compliance and the power of self-regulation

September 14, 2020

When the GCC branch of the International Food and Beverage Alliance (IFBA) an- nounced 100 per cent compliance with its pledge to not undertake marketing to children under the age of 12, an important message was delivered: self-regulation works and is a powerful tool in the drive to improve the nutritional quality of foods marketed to chil- dren.

That pledge, which was initially signed in 2010 and endorsed by the Advertising Busi- ness Group (ABG) in 2018, is a voluntary commitment to conduct responsible food and beverage marketing to children. Such a commitment – made because of growing con- cerns around the contribution of advertising to rising childhood obesity rates – helps promote healthier lifestyles, thus negating the need for governmental regulation.

Industry self-regulation has proved to be an important tool in driving the voluntary adop- tion of strategies designed to change how and what companies advertise to children, while also improving the nutrition of foods marketed to children.

In Europe, the EU Pledge – a voluntary initiative undertaken by 23 companies to only advertise products that meet common nutrition criteria to children under 12 – has had significant and quantifiable success. According to data from Accenture, the pledge led to an 83 per cent drop in HFSS (high in fat, salt and sugar) ads around children’s pro- grammes between 2009 and 2014 (compared with 2005), and a 48 per cent drop across all programmes. There was also a 32 per cent decline in children’s exposure to all food marketing, irrespective of the products’ nutritional value.

In Poland, a self-regulatory code reduced children’s exposure to TV food ads by 55.5 per cent. In New Zealand, the Children and Young People’s Advertising Code, which banned advertising of HFSS products during TV viewing times when children made up at least 25 per cent of the audience, led to an 82 per cent fall in the exposure to HFSS ads by children aged between five and 14 years old.

Significantly, such industry-led commitments have had high levels of compliance. Full compliance with the GCC FBA pledge has been verified by an independent auditor, with the results of that audit revealing that all nine members of the alliance – The Coca-Cola Company, Mars, Mondelez International, Kellogg’s, PepsiCo, Nestlé, Unilever, General Mills and Ferrero – were 100 per cent compliant in meeting their pledge commitment across TV, print and online advertising in the GCC during 2019.

“This demonstrates that we are committed to actually doing what we said we would do,” says Christine Greaves, chair of the GCC FBA, and corporate affairs director at Mars. “It also means we’ve had a meaningful impact in reducing children’s exposure to advertis- ing that promotes foods considered high in fat, salt and sugar.

“As an industry group we have come a long way since the start of the program in 2010. It has required our combined commitment towards doing the right thing as responsible marketing not only drives industry growth but also community wellbeing. As a vulnerable group, children deserve our attention, and we are committed to continue driving our re- sponsible marketing practices”.

Self-regulation benefits all. Consumers benefit from the measured and responsible ap- proach of an industry that takes their well-being into consideration. Governments benefit from the absence of burdens such as enforcement and monitoring, which are shifted to the industry. And the industry is spared the imposition of regulations that can inhibit in- novation, performance and growth.

“Making the commitment is one thing, but then measuring to demonstrate compliance is another thing,” says Will Gilroy, director of policy and communications at the World Fed- eration of Advertisers (WFA), which works in partnership with the IFBA to promote, sup- port and strengthen pledges around the world. “I think it’s part of being an outward look- ing, responsible company to be setting up these mechanisms by which you can check and externally validate that you’re doing what you say you’re doing.

“To that end, 100 per cent compliance is good, but no one can stand still. Pledges have to be reviewed to ensure they’re in line with international best practice, local and re- gional bodies have to look at their coverage of emerging techniques such as influenc- ers, and equally they have to develop accountability mechanisms.”

Greaves agrees. “We’ll always be reviewing and refining, we’ll always be looking at global best practice and how we can implement global best practice here in the GCC. Ultimately, our goal is to reduce the exposure of foods considered high in fat, salt and sugar to children. And we are committed to achieving that.”

That will mean evolving the alliance’s pledge (and its monitoring of that pledge), as well as being open and accountable via a complaint’s mechanism. That mechanism is al- ready in place via the ABG, which has a disputes committee able to adjudicate on mat- ters relating to marketing to children. It will also mean bringing in new local players, alt- hough that will depend on the extent to which they market their products.

The ABG has additionally worked with the WFA to create an exhaustive online training programme on responsible marketing to children that is accessible to all of its members. It has also been training university students focused on communication and marketing on the need for responsible marketing to children.