Advertising Regulatory Council of Nigeria (ARCON) has sued Meta, the parent company of Facebook and its Nigerian public relations agency AT3 Resources at the Federal High court, Abuja Judicial Division.
Citing loss of revenue and violation of laws, the Advertising Regulatory Council of Nigeria (ARCON) has sued Meta, the parent company of Facebook and its Nigerian public relations agency AT3 Resources at the Federal High court, Abuja Judicial Division.
The council through its legal head said that “it is carrying out its statutory responsibility of ensuring that advertising, advertisements and marketing communications conform with the lawful enactments.”
ARCON is seeking ₦30 billion (~$50 million) in sanctions for the violation of the advertising laws and for loss of revenue as a result of Meta’s continued exposure of unapproved adverts on its platforms.
The regulatory body believes that Meta’s continued exposure of unvetted adverts had also led to a loss of revenue to the federal government as it reiterates that it would not permit unethical and irresponsible advertising on Nigeria’s advertising space.
This move comes after a new bill by ARCON was passed by the National Assembly and approved by the Nigerian president in August. The new bill repealed the Advertising Practitioners (Registration, etc.) Act, Cap. A7, Laws of the Federation of Nigeria, 2004 and enacting the Advertising Regulatory Council of Nigeria (ARCON) Act, 2022, which recognizes ARCON as the apex authority for the Nigerian advertising industry.
Responding to questions from WION, Chukudi Ezeaba, Head (Legal Advertising), ARCON, enlightened practitioners on the laws that govern advertising in the country, be it on or off the social media space.
“The principal legislation governing advertising in Nigeria is the Advertising Regulatory Council of Nigeria Act No. 23 of 2022 and the Nigeria Code of Advertising Practice. There are fragments of other statutory provisions concerning advertising in some specific legislations like the Electoral Act and some industry-specific regulations. Overall, the ARCON Act is preeminent.”
He cleared the air on reports that suggest the council will be stifling small businesses in Nigeria..
“That position is very incorrect and mainly peddled by those who carry out advertising that ordinarily would not be approved by the Advertising Standards Panel (ASP) and primary and secondary online media platform owners. ARCON has provided a very business-friendly model for SMEs for the vetting of advertisements from small businesses. That has been encouraging for those who comply with the statutory provisions. Most of the critics have not availed themselves with the opportunities offered by the model.”
ARCON also shared that it’s not regulating the online media space but advertising and marketing communications on online platforms in line with its establishment act and advised practitioners to “Simply ensure that their advertisements are vetted and approved before exposure.”
Recall that ARCON in August announced the ban on the use of all foreign models and voice-over artists in Nigeria, a move that has been met with mixed feelings as Nigerians look forward to its pros and cons in the coming years.
This move, according to Ezeaba, is “to ensure ethical advertising business and practice in Nigeria. Making constructive business-friendly and productive policies that will encourage SMEs and other businesses to thrive in Nigeria.