Exemptions for small businesses from the ban on certain food adverts being shown online and on television before 9pm could lead to “unexpected impacts”, according to a law expert.
Last week the UK Government confirmed plans to implement a TV watershed and online ban for adverts promoting foods high in fat, salt and sugar (HFSS) from the end of next year. However, businesses with fewer than 250 employees will not be affected and companies producing HFSS foods will still be able to advertise their products on their own online spaces, such as websites and social media.
Nick Johnson, partner at international law firm Osborne Clarke, said there may be unexpected consequences to the Government’s decision, which is designed to help tackle childhood obesity.
“The exemption for small businesses, which will allow them to continue to advertise so-called ‘junk food’, will create an odd two-tier system,” he said. “What they’re proposing are rules that may or may not apply depending on who the advertiser is and how large their business is, rather than just being based on the content and placement of the ad. This new approach is unprecedented in UK advertising regulation and could have unexpected impacts on M&A transactions and corporate structures in the food and beverage sector.”
Johnson added that the advertising ban will have significant implications for online platforms.
He continued: “There will now be complicated restrictions which these platforms will need to understand and work out how to apply. Given that the ASA has recently used bots to identify problematic online ads, it is likely that there will be enforcement against non-compliant food and drink ads.”
