ARCON Begins Clampdown on Firms over Digital Advertisements

Advertising Regulatory Council of Nigeria (ARCON), has warned players in the digital media space that further contravention of the newly promulgated ARCON Act will attract severe sanctions ranging from various fines to one-year imprisonment of relevant officials.

Olalekan Fadolapo, director-general, ARCON, stated this during an interactive session with digital agencies, bloggers and content creators.

Fadolapo said ARCON, which is backed by the Ministry of Information and Culture and the National Assembly, would begin rolling out sanctions to erring advertising practitioners, effective March 1, 2022.

According to him, sanctions will cut across primary digital space owners – big techs, including Meta, Google, Twitter, among others, down to secondary digital space owners, which comprises content creators, skitmakers and influencers responsible for marketing communication on these platforms.

Fadolapo reiterated that ARCON does not seek to regulate social media and clamp down on free speech, but to ensure that promotional content communicated via the digital media conforms to standards as prescribed by the ARCON law.

He said, “As we are aware, recently, the law setting up the agency was changed. The APCON law was repealed. The ARCON law was enacted. During the enactment of the ARCON law, there was a review of the practice of advertising.

“In the marketing communication architecture in Nigeria, as we are aware, there are changes that have happened in the industry in terms of business of advertising and the practice of advertising. The digital space is playing a major role in the business of advertising. Business is moving from the traditional space to the digital media space. We are empowered by the law to regulate advertising, advertisement and marketing communication in all its ramifications.”

On his part, Charles Odenigbo, council’s lawyer, while explaining the implications of the provision of the ARCON Act, warned advertisers in the digital media space that ignorance of the law would not serve as an excuse or absolve persons found wanting of their culpabilities.

He noted that all advertising messages on the digital media must conform to the four cardinal points of legality, decency, truthfulness and honesty.

He said, “Any skit maker, on-air personality, content creator, brand owner — whatever name you are called, the moment you descend into the arena of marketing communication, advertising, and advertisement, the new ARCON moves into operation, whether you are aware or not.”

Odenigbo further noted that all advertisers in the digital media space are now required by the law to forward all advertising messages to the council’s Advertising Standards panel for vetting before exposure or publication.

He added that any advertising agency, which creates and/or places for publication or exposure of an advertisement without the ASP Certificate of Approval shall be liable to a minimum penalty of N500,000.

He said, “According to the vetting code, you will be fined N500,000 or you will go to jail for a term of one year. When they jail you, it means that you are no longer qualified to contest for certain positions in Nigeria again.”

In October 2022, ARCON  filed a suit against Meta Platforms Incorporated (owners of Facebook, Instagram and WhatsApp platforms) and its agent AT3 Resources Limited at the Federal High Court, Abuja Judicial Division.

The apex regulatory body for Nigeria’s advertising ecosystem, in the suit, sought a declaration among others that the continued publication and exposure of various advertisements directed at the Nigerian market through Facebook and Instagram platforms by Meta Platforms Incorporated without ensuring the same is vetted and approved before exposure, is illegal, unlawful and a violation of the extant advertising law in Nigeria.

ARCON demanded N30billion sanction for alleged violation of the advertising laws and for loss of revenue as a result of Meta Incorporated’s continued exposure of unapproved adverts on its platforms.

While speaking exclusively with our correspondent on the progress of the suit, the ARCON DG said the case had been adjourned to sometime in March 2023.

He said, “The case is in court. We have had the first hearing. The case has been adjourned to sometime in March.”