Overview of the 11th Edition of the ICC Advertising and Marketing Communications Code

On 19 September 2024, the International Chamber of Commerce (ICC) introduced the 11th edition of its Advertising and Marketing Communications Code (Code). 

Described by the ICC as the "first comprehensive update of the ICC Code in a decade", the revamped Code responds to contemporary challenges addressing matters such as AI, influencer marketing, climate issues, and many more.

Highlights from the Code

The Code covers a wide range of topics. Below are a few highlights that showcase the modernisation of the Code:

1. Artificial Intelligence and Automation

The new Code incorporates guidance on the use of artificial intelligence (AI) in marketing. Marketers must now disclose when AI-generated content is used and ensure it meets the same ethical standards as human-created content.

2. Influencer Marketing

As influencer marketing has become prevalent on platforms like TikTok and Instagram, specific guidelines mandate influencers to disclose any financial ties or gifts received from brands. This transparency aims to build consumer trust and ensure authenticity in endorsements.

3. Sustainability Claims

In response to growing consumer focus on environmental issues, the Code strengthens requirements for substantiating environmental claims. Marketers must provide credible evidence for claims and avoid exaggeration, thereby combating greenwashing.

4. Data Privacy and Protection

With increasing global emphasis on data protection, the Code mandates that marketers obtain explicit consent before collecting personal data. They must also clarify data usage and provide accessible opt-out options.

5. Children

The Code clarifies the rules that apply to marketing to children, including that content must not exploit their lack of experience, lack of knowledge on social issues, loyalty or credulity. 

Why does this matter? 

The ICC is a huge organisation (it describes itself as the "world’s largest business association") and whilst membership is voluntary, numerous businesses will be members of the ICC and therefore obliged to comply with the Code. And as most businesses carry out some form of marketing and advertising, the Code is relevant for an awful lot of businesses – including for those carrying out marketing and advertising activities on behalf of ICC members. 

For ICC members, non-compliance with the Code can lead to significant repercussions:

• Sanctions: Self-regulatory organizations (SROs) can impose sanctions on marketers found in violation, which can include fines or public reprimands.
• Legal Action: Marketers may face referrals to consumer protection agencies or lawsuits from consumers, including class actions.
• Reputational Damage: Non-compliance can severely harm a brand's reputation, leading to a loss of consumer trust and potential market share.

Apart from avoiding the consequences of non-compliance, compliance with the Code matters for several reasons:

• Consumer Trust: Adhering to the Code fosters consumer confidence and promotes responsible marketing practices.
• Legal Alignment: The Code aligns with international regulations, enhancing legal compliance and protecting businesses from potential litigation.
• Brand Reputation: Brands that follow ethical guidelines are more likely to maintain a positive public image, crucial in today’s digital landscape.

What next? 

The Code was only released very recently and so the challenge will be for businesses to get up to speed with its requirements, particularly for areas that may not previously have had any requirements under older versions of the Code, e.g. AI, etc. 

For some businesses, there may be other frameworks in place that overlap. For example, for businesses that fall within the remit of OFCOM and the Advertising Standards Authority, codes like the CAP and BCAP codes already apply to their advertising and there will be some overlaps, e.g. ensuring marketing communications are honest and not misleading, substantiating claims, etc.

As a result, some businesses may already have adopted advertising and marketing practices that will help to ensure compliance with Code. 

However, given the possible consequences of getting it wrong, best practice would be to ensure that those responsible for ICC-members advertising and marketing (whether that's internal teams or external agencies) are well-versed on the Code, and so able to put out Code-compliant communications.

The Code is a detailed and sizable document (88 pages). If you'd feel more comfortable with some support to understand whether your proposed communication is compliant, we're happy to help you with this.