Major Updates to ICC’s Advertising and Marketing Communications Code

The Code has been regarded as a worldwide benchmark for marketing and advertising standards ever since it was first issued in 1937. Now the latest revision builds on the previously set standards to accommodate global developments and address the challenges posed to marketing practices in the digital age.

AI, algorithms and digital marketing: Addressing the role of technology

The revised Code emphasises the responsibilities of advertisers and marketers using algorithms or other AI instruments in their marketing activities. It addresses the responsibility of advertisers and marketers for the communication results these technologies produce. This responsibility extends to all parties involved in the marketing process.

The Code includes steps for professionals to ensure diligence when using algorithms and AI instruments. Marketers must ensure that AI is used in compliance with the Code. Additionally, the Code addresses the use of AI in sales promotions, ensuring that AI tools used for personalised offers or large-scale campaigns are subject to the same ethical standards as other forms of promotion. This reinforces the principle that AI should enhance consumer choice without compromising fairness or transparency.

Environmental marketing: Stricter rules on environmental claims

The revised Code brings more rigorous standards for environmental claims in marketing, reflecting the increasing global focus on sustainability and corporate responsibility. As businesses continue to highlight their environmental credentials, the Code emphasises that any claims made must be truthful, substantiated and supported by reliable scientific evidence.

A significant addition in this area concerns aspirational claims. This poses the requirement for companies to provide clear, actionable plans when making long-term aspirational commitments or goals, such as commitments to achieve carbon neutrality within a specific timeframe. This means that companies can no longer simply set a distant target with an aspirational claim, without demonstrating how the goal will be reached. Instead, companies must now indicate concrete steps they will take to achieve such environmental objectives. This change not only prevents greenwashing when environmental promises are made without a credible basis, but also ensures that companies are held accountable for the claims they make. The provision on aspirational clams in the Code concerns not only environmental claims, but also e.g. claims regarding diversity, equality, and well-being.

In addition, the revised Code stresses the importance of providing scientific substantiation for any environmental claims, as marketers are required to back up their claims with reliable, verifiable data. This applies not only to direct environmental statements but also to implied claims, ensuring that companies cannot make vague or misleading suggestions about their environmental impact. Whether the claim relates to a product’s carbon footprint, sustainability or any other environmental attribute, the marketer must be able to present solid evidence to support these assertions.

Influencer marketing: Clearer guidelines for transparency

The revised Code introduces new and improved guidance on influencer marketing. It addresses influencer marketing and related responsibility, as well as establishing safeguards for minors acting as influencers. The Code also introduces a definition for “influencer”.

The overarching principle is that all influencer marketing communications should be clearly identifiable as commercial content, so consumers can easily distinguish between paid partnerships and other content. The relationship between influencers and brands should be transparent and clear, which includes explicit disclosure of any financial compensation or benefit received by the influencer, such as payments or free products/services. The commercial nature of the influencer’s marketing post should be clear from the outset, meaning that disclosures should be prominent and not hidden among other content such as terms and conditions, hashtags or “see more” sections.

Furthermore, the Code provides that influencers must not claim sponsorship by a brand where no such agreement exists. Such false statements are considered misleading, as the influencer’s actions are still regarded as actions promoting the influencer’s own brand and services.

Finally, it is worth noting that the newly introduced definition of an “influencer” effectively encompasses influencers with a relatively small number of followers as well. This means that the rules apply despite an influencer’s limited commercial influence and reach.

Child-centric marketing: Enhanced protection of minors

The revised Code introduces more robust rules on marketing directed towards children and teens, acknowledging the vulnerability of younger audiences in the digital age. The Code emphasises that any marketing communications targeting children must be designed with special care, ensuring that content is age-appropriate, decent, truthful, and honest, and does not exploit their inexperience or emotional susceptibilities.

The revised Code now introduces a separate chapter dedicated to children and teens, which outlines specific responsibilities for marketers. It prohibits any form of manipulation or deception aimed at minors, particularly in digital environments. The new guidelines help protect younger audiences, e.g. in gaming environments, where minors are often exposed to marketing messages regarding the game and in-app purchases. The content must respect their limited ability to discern marketing from entertainment and avoid pressuring them into purchases.

Finally, the Code introduces an explicit provision for the first time that prohibits marketing communications to minors that idealises unhealthy bodily appearances and incites or condones physical self-harm. This emphasises the crucial role of responsible marketing in shaping perceptions and behaviours amongst minors.

Key takeaways

The 11th edition of the ICC Code has provisions designed to address some of the current challenges posed by the digital era. By addressing these current issues, the Code can be seen to align with broader regulatory trends as well.

Recent regulatory advances include not only measures taken to address and mitigate the risks of AI, but increased regulation and guidelines on the use of green claims to tackle greenwashing and protect consumers in a world where sustainability and environmental factors have become increasingly important. In addition, there have been discussions around whether EU-wide and/or national influencer-specific regulation should be introduced, especially if the current regulatory framework for consumer law fails to provide sufficient protection in today’s digital world. Before the introduction of any new regulation, the Code helps maintain trust among consumers by requiring greater accountability and transparency in advertising and marketing operations.

The revised ICC Code not only addresses the specific issues of our time but establishes an ethical framework for advertising and marketing which can adapt to future developments. The latest edition underscores the importance of ethical considerations in marketing and reflects the commitment to respond to new challenges as they arise.