ADVAN sues ARCON, Tinubu, Akpabio, others over advertising reforms

* We won’t now to sustained media attacks – Fadolepo

The Advertisers Association of Nigeria (ADVAN), the umbrella body of corporate advertisers in the country, has filed a suit against the Advertising Regulatory Council of Nigeria (ARCON) over the ongoing advertising industry reforms.

Also added as defendants in the suit are President Bola Tinubu, Senate President Godswill Akpabio, the Attorney-General of The Federation, the Senate and House of Representatives, Minister-Federal Ministry Of Information And Culture, Minister, Federal Ministry Of Industry, Trade and Investment and National Institute Of Marketing Of Nigeria (NIMN).

ADVAN claims that the reforms initiated by ARCON are unconstitutional and infringe on the legal rights of advertisers and their members. The association also alleges that the reforms are aimed at exploiting and impoverishing the Nigerian advertising industry.

According to a press statement issued by ADVAN’s President, Mr. Osamede Uwubanmwen, the association has engaged in numerous dialogues and consultations with ARCON and other stakeholders, but has not reached a satisfactory resolution. He said that ADVAN has taken the matter to court to challenge the constitutionality of the advertising reforms.

Some of the contentious issues raised by ADVAN include media rates deregulation, 45-day industry credit policy, use of local talents, production of advertisement outside Nigeria, disengagement protocol, copyright and engagement policy.

Mr. Uwubanmwen said that ADVAN respects the Nigerian constitution and believes that some aspects of the ARCON reform are in conflict with it. He said that ADVAN views this legal action as an essential response to safeguard the interests of its members and the integrity of the marketing profession in Nigeria.

He said, “We do not take this matter lightly because we are law-abiding brands that hold the Nigerian constitution in the highest esteem. The ongoing ARCON reforms as it stands, has raised concerns that need to be addressed. We have engaged in numerous dialogues and consultations, and we want to clarify that while there were discussions suggesting that ADVAN had already gone to court, that was not official. We can now confirm that we have indeed taken the matter to court to challenge the constitutionality of the advertising reforms.

He added that ADVAN views this legal action as an essential response to safeguard the interests of its members and the integrity of the marketing profession in Nigeria. Specifically, ADVAN pointed out that the legal action is instituted to tackle what it describes as a breach of the constitution and legal rights of advertisers and their members.

“The Nigerian constitution is a revered document, and any amendments to it must adhere to a stringent process that involves approval by two-thirds of the Senate and the House of Assembly in Nigeria. After a thorough examination, ADVAN has identified certain aspects of the ARCON reform that appear to be in conflict with the constitution. This includes the handling of marketing and advertising within the constitution and the regulation of contractual agreements between two parties. The organization believes that such agreements should not be legislated upon but should remain within the realm of enforceable legal contracts.

“The purpose of regulating communication is to ensure that harmful content is not displayed, and when it transforms into a revenue-generating mechanism, it contradicts the essence of regulation. This is especially concerning for corporate entities operating in Nigeria,” he added.

However, ARCON has reacted to the suit filed by ADVAN and accused the association of resuming media attack on its Director-General, Dr. Olalekan Fadolepo, who was recently reappointed by President Tinubu.

In a press statement signed by Dr. Fadolepo, ARCON said that it will not succumb to the blackmail, intimidation and propaganda of ADVAN or any stakeholder in order to suspend the ongoing industry reform.

He said that the reform is approved by the minister and is aimed at accelerating gainful employment, rewarding local talents and improving the Nigerian economy.

Dr. Fadolepo also said that ARCON will invite and seek the support of other government agencies to investigate the activities of the advertisers, agencies and other stakeholders whose unethical and exploitative tendencies are undermining and sabotaging the efforts and policies of the Federal Government.

He listed some of the highlights of the industry reform and ARCON pronouncements and urged all stakeholders to comply with them.

“Respect Nigerian media houses the way you respect foreign media houses operating in Nigeria. No stakeholder or group of stakeholders should regulate media rate increase as media houses do not regulate other stəkeholders’ product[s] price increases. Let demand and supply determine sales and purchases of media services as it is in the other sectors of the industry.

“Globally, payment threshold is a policy in the advertising industry. Some ADVAN members have been offering Nigerian businesses 120 days payment circle, thereby impoverishing the Nigeriən advertising industry. These same advertisers prepay foreign media houses operating in Nigeria for media services. ADVAN had insisted on old practices that have led to industry debt and exploitation of media owners.

“Nigerians should be considered as primary in advertisement targeted at the Nigerian market. Use of foreign models and voices are banned except where it is inevitable. If you are selling your product to Nigerians, Use Nigerians in your communication elements.

“Stop the capital flight and development of other economies by going out of the country to produce adverts meant for the Nigerian market, thereby killing the advertising industry. All commercials to be exposed to Nigerians should be produced in Nigeria. Create jobs for our youths, help grow and develop the Support Service sector of the industry and circulate the money within the Nigerian advertising ecosystem.

“Whenever you sack your agency, ensure yoU reconcile and put a closure to all financial matters before engaging another agency. Owing one agency and moving to another without closure of the previous contract is no longer acceptable in the advertising industry.

“Respect Nigerian copyright laws. Don’t use people’s intellectuəl property without compensation or approvəl. Violation of this will attract severe consequences.

“There is a professional way to engage an agency. Ensure you adhere to this and conduct your business ethically,” the ARCON boss said.