Hong Kong’s ad regulations hit the headlines this month following complaints against CSL New World Mobility over “untruthful” claims in its ads.
The row, which made the local press, has been caused by a campaign from CSL touting its new mobile broadband service. CSL claimed its Express 21 USB had download speeds of up to 21Mbps and unmatched mobile broadband coverage in Hong Kong. Rival operator SmarTone-Vodafone, however, has complained that the modem can actually reach only half that speed, and even tested one of the modems across the SAR to prove it. Chief executive Douglas Li launched an attack on what he described as a “matter of misrepresentation.”
The row, which made the local press, has been caused by a campaign from CSL touting its new mobile broadband service. CSL claimed its Express 21 USB had download speeds of up to 21Mbps and unmatched mobile broadband coverage in Hong Kong. Rival operator SmarTone-Vodafone, however, has complained that the modem can actually reach only half that speed, and even tested one of the modems across the SAR to prove it. Chief executive Douglas Li launched an attack on what he described as a “matter of misrepresentation.”
The Office of the Telecommunications Authority (OFTA), the regulator that oversees the sector, is still gathering information on the matter before deciding whether to launch an official investigation.
However, Eddie Ngan, partner, invention, at Mindshare Hong Kong, says bending the truth in ads is common in the telecoms sector. “All major mobile network operators in Hong Kong tend to overclaim their internet connection speed,” he says.
Sue McCusker, GM of Publicis Hong Kong, blames the category’s cut-throat nature, saying advertisers “take any opportunity to try to discredit one another.”
In this atmosphere, do the regulations need to be tightened? Telecoms is actually one of the more heavily regulated industries in Hong Kong; OFTA is supposed to monitor and investigate any product claims concerning telecommunications products and services, before they appear on television and “in all printed materials, be it in newspapers, magazines, buses or billboards.”
More generally, for TV ads in Hong Kong, any product claims are monitored by the Broadcasting Authority, so any claims need to be qualified and supported by facts. But Chris Kyme, managing partner at Eight Partnership, says there isn’t an equivalent body for print, poster or online advertising. “The monitoring is conducted by the media vendor, or advised by the media agent. The controls are very inconsistent and somewhat subjective.”
Kyme likens Hong Kong to Singapore in terms of ad regulations. Most restrictions are governed by either audience (targeting children, for example) or category (pharmaceuticals, etc.). He adds that China has the most stringent rules. “In some provinces you are not even allowed before and after shots,” he says.
There’s clearly a fine line between exaggeration and downright misrepresentation. As Royce Yuen, chairman of the HK4As and Ogilvy & Mather Hong Kong, says, a certain amount of dramatisation is always present in ads, but should not lead to outright lies.
Most agencies are reluctant to see any more red tape. McCusker for one thinks tighter regulations are unnecessary. She argues that there is already a great deal of self-regulation within the advertising industry in Hong Kong and that “stricter advertising regulations can result in some ridiculous situations”. She adds: “I recently heard a radio commercial from the US that included a 15-second disclaimer to try to avoid being caught out by regulations.”
There is now another bulwark against misrepresentation in advertising: the internet. Several brands have found that a disconnect between what they say in their ads and what they offer can backfire. For example, last year Master Kong was forced to apologise in China for claiming bottled tap water was from a “high-quality water source” following an online backlash.
In the world of social media and blogs it has become harder for brands to bend the truth. Richard Thomas, president/CEO of DDB in Hong Kong and vice-chairman of HK4As, adds: “The ‘influence’ culture means that truth is ever more critical, but good brands and marketers have always believed that, it is just the less good ones that now have greater exposure to the risk of discovery. Social media has not changed the reality that a clear simple message compellingly communicated is still the most effective form of marketing communications, and if that message is not true, as ever, the target audience won’t buy your product.”
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This article was originally published in 13 August 2009 issue of Media.
