Ms Orla Twomey:

The naming and shaming sanction is actually quite powerful. It is easy to underestimate how strongly companies feel about their brand reputation. To be associated with a finding that they have either misled or offended their audience is not something about which most companies would be happy. We do know from discussions with companies that an adjudication before the complaints committee for decision is reported at the very highest levels. Obviously, sometimes we will have companies that like to court publicity, but that happens very rarely. The naming and shaming sanction is very powerful. It is being used by many regulatory organisations, whether they are statutory or self-regulatory.

The other thing about our sanction is that advertising that is in breach of the regulations has to be amended or withdrawn. Small companies have very small marketing budgets and if they have to withdraw an advertisement, it is investment they can no longer leverage. It is the same with large companies. Television advertisements are very expensive to produce creatively; therefore, they are left with a piece of collateral that they cannot use. The advertisements are not made to be used as a once-off. Companies will invest in their marketing strategy over six to 12 months or perhaps even longer and will want to reuse advertisements over that time. It is not just about the reputational damage. Even though we do not apply fines, there is a financial sanction when advertising has to be withdrawn or amended.