Wellington advertising industry is reeling after a review into the behaviour of online advertisers.
The industry has been hit by a flood of complaints since a study showed people were being targeted more than ever, with some companies using deceptive advertising to get people to click on ads.
The Advertising Standards Authority has been investigating advertising on the NZ Herald website and has found that some companies were running ads which made people believe they had been paid by the advertiser.
Advertisement Advertisement Advertisement The Advertisers’ Association says it has no evidence that people had been lied to.
Advertisers are also worried about how the advertising network can be used to sell products, services or services without customers knowing they were being asked to pay.
Advertisement Advertiser Gary Wieczorek says many of the companies are using the NZSIA to sell the products or services they are offering without giving people any real reason to buy.
“They’re just using it to get clicks, they’re using it for a marketing purpose,” he said.
The NZSII has been scrutinised since it was created in 2005, and it has been criticised for not having a clear set of standards for what constitutes deceptive advertising.
Its members include all major advertising agencies and online platforms, including the New Zealand Herald and the Financial Times, but there is no formal regulation for advertising on websites and apps.
An advertiser could run a banner or other type of advertisement which appears to say that the advertisers products or service are free or cheap and it could be used in an ad to convince a person to pay for the product or service.
Advertisement If someone clicked on the ad and the company told them that they were getting a free product or a free service, it could look like they were agreeing to the company’s terms.
If a person clicks on the banner, the company could make a similar claim, and the advertisement could appear to be misleading because it is meant to persuade people that they are buying something they are not.
Advertisement But if a person did not click on the advertisement, the advertisery could claim that they did not receive a product or free service.
This could be misleading if the advertisement was a marketing campaign or a promotional offer and the person did receive the product, service or service that they thought was free.
Advertisement The NZSIS has also been criticised over its approach to how it investigates complaints about deceptive advertising, and in April it announced it would be changing the way it investigates advertising complaints.
It has already announced it will consider changes to how complaints are investigated and the number of staff who would be working on complaints.
It is also changing the nature of the complaints process.
Advertisors will no longer have to lodge complaints directly with the NZ SIA.
Instead, the complaint will now be lodged through the Advertising Standards Centre (ASC) where a member of the public can help them with the investigation.
Advertisement ASC will also have new resources available to assist the ASA with investigations, including a new hotline and mobile phone number to contact.
In a statement, the ASA said it was taking steps to make the complaints system more transparent, including changing how complaints were dealt with.
ASC also said that the new model for complaints would be reviewed once it became clear that the complaints were not being dealt with properly.
New Zealand advertising regulator to review NZSIAs role in ad investigation Advertising industry group Advertisership NZ said it had already changed the way complaints were handled, including how complaints would now be dealt with through the New York-based ASC.
Advertisement It said it would also look at whether to expand the role of the ASC to include reviewing complaints that were not yet resolved through the NZIS.
But Advertisering NZ said the new role would only be a pilot, and that any changes would need to be approved by the ASHSA and the Government.
Other issues Advertising NZ said its members were being told about issues they were not aware of and that it was a challenge to keep up with changing technology.
One of the major issues was the lack of a clear definition of deceptive advertising and how much information it could use.
Advertisement Another issue was the fact that the ASA’s role would not be fully operational until 2018.
Mr Wiecsorek said it is difficult for the public to be able to understand the issues being raised in an investigation.
While the NZSA has no specific definition for deceptive advertising it said it could only apply to the type of advertising where it was being used.
Under the ASI Act, an ad could be deceptive if it was misleading, deceptive or deceptive in relation to a matter affecting the consumer, for example in relation for example to the terms and conditions of a service.