ICC Statement on Code Interpretation/Reference Guide on Advertising to Children

The Reference Guide on Advertising to Children can be found here. 

ICC Statement on Code Interpretation

The International Chamber of Commerce Consolidated Code of Marketing and Advertising Practice
(ICC Code) sets forth standards for marketing communications, including provisions addressing
special responsibilities for marketing “products” (as defined by the ICC Code, which includes
services)to children and young people. Article 18 of the ICC Code outlines principles for advertising
to children and young people, while Article 19 establishes principles for data collection involving
children. The purpose of this Statement on Code Interpretation is to clarify the age of “children” and
the age of “young people” for purposes of the ICC Code.

The ICC’s approach has been informed by almost 100 years of research on child development, and
recognizes that children, on the one hand, and teens, on the other, require special consideration
based on their differing ability to understand marketing messages. A wealth of data and historical
customs and practices support defining “children” as age 12 and younger (i.e. under 13 years old) for
marketing-related purposes, and this is generally the age the ICC intends when referring to “children”
in the ICC Code. Where the ICC Code refers to “young people,” the ICC generally intends this
phrase to mean teenagers (“teens”) under age 18. Children and teens are typically considered
“minors” and are barred from purchasing, consuming or using particular products intended for adults.

An overarching principle of the ICC Code is that marketing communications must be legal, decent,
honest and truthful, considering how the communication is likely to be interpreted by the primary
target audience. The ICC Code recognizes that some added fair marketing communications
principles should apply to both children and teens, while other specific marketing communications
principles should apply only to children. For example, products that are unsuitable for purchase, use
or consumption by children and teens in the jurisdiction where the marketing communications appear
should not be advertised in media targeted to them, while other provisions of the Code (e.g. the use
of fantasy in advertising) include additional best practices for child-directed marketing
communications. Likewise, children and teens should not be portrayed in advertisements using
products that are not appropriate for them to use.

The ICC recognizes that some local laws may define “children” and “young people” differently.
Marketers of course must respect local laws when it comes to structuring local marketing
communications. The ICC decision to adopt age 12 and younger as the reference age of “children”
for purposes of advertising and privacy provisions of the ICC Code, and to define “young people” as
teens under 18, reflects proven differences in the ability of children versus teens to understand
marketing communications, the very real differences in teens’ interests as compared to children, the
practical impediments to obtaining parental consent where data collection from teens is concerned,
sensitivities about teen privacy rights, and respect for freedom of commercial communications where
the principal audience is adults. Harmonization around this age will help maintain international
consistency, and is consistent with many content ratings and safety laws around the world.

UN General Assembly Grants Observer Status to International Chamber of Commerce in Historic Decision

  • United Nations General Assembly adopts resolution granting Observer Status to world’s largest business association
  • New role for the International Chamber of Commerce first time business given official role in General Assembly in the 71-year history of the UN
  • Landmark move will enhance business engagement on global governance issues—including implementation of the UN’s 2030 Agenda for Sustainable Development

UN_General_Assembly_hallNew York, N.Y., December 13, 2016 – In an unprecedented move, the United Nations General Assembly has today granted Observer Status to the International Chamber of Commerce (ICC) – the world’s largest business organization representing more than six million members in over 100 countries, according to the United States Council for International Business (USCIB), ICC’s American national committee.

The decision – taken by 193 members of the UN General Assembly during its on-going 71st session in New York – is the first time that a business organization has been admitted as an Observer at the UN General Assembly. The list of UN observers is highly restricted and features principally intergovernmental organizations.

The new role for ICC means that business will for the first time have direct voice in the UN system. The decision paves the way for ICC to contribute directly to the work of the General Assembly and reflects the vital role the private sector will play in implementing the UN’s 2030 Agenda for Sustainable Development.

ICC Chairman Sunil Bharti Mittal said: “This is huge recognition of the role that business can play in contributing to a better and peaceful world. There is only one route to meeting the many challenges that face our society – from climate change to mass migration – and that is for governments and civil society to work hand-in-hand with the private sector.

“Granting Observer Status to ICC sends a powerful signal that the UN recognizes business as a vital partner. We stand ready to ensure that the private sector plays a full role in meeting the ambition of the 2030 agenda.”

The resolution to grant observer status to ICC was submitted by France – ICC’s host country – and was supported by 22 other Member States. ICC already works with a wide array of UN specialized agencies and organizations around the world providing business input and expertise on issues from commercial standards through to climate change. ICC was designated as the official business representative in the processes that lead to the creation of the UN’s 2030 Agenda for Sustainable Development – a key factor in the General Assembly’s decision.

ICC Secretary General John Danilovich said: “It’s a great honor for ICC to be granted Observer Status at the UN General Assembly. ICC has a long tradition of close cooperation with the United Nations and today’s decision reflects our sustained efforts to strengthen the relationship between the UN and the private sector.

“Given the complexity of today’s global challenges, it’s vital that business has a clear voice in UN decision making. We look forward to using this unique platform to deploy fully the resources, expertise and knowledge of world business in the work of the General Assembly.”

Danilovich also gave an interview on CNBC regarding ICC’s new status. Click here to watch.

USCIB President and CEO Peter M. Robinson added: “We have strongly supported this effort since its inception and are delighted at the elevation of ICC’s status within the United Nations. This reinforces the unparalleled network USCIB has built to convey U.S. business views to governments and international policy makers. It is part and parcel of our efforts to work more closely with the UN and other intergovernmental bodies in pursuit of shared goals.”

Following today’s UN General Assembly resolution, ICC will take up its position as observer to the General Assembly on January 1, 2017.

About ICC:
The International Chamber of Commerce (ICC) is the world’s largest business organization with a network of over 6.5 million members in more than 130 countries. We work to promote international trade, responsible business conduct and a global approach to regulation through a unique mix of advocacy and standard setting activities—together with market-leading dispute resolution services. Our members include many of the world’s largest companies, SMEs, business associations and local chambers of commerce. Learn more at www.iccwbo.org.

About USCIB:
The United States Council for International Business (USCIB) promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and regulatory coherence. Its members include U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world. With a unique global network encompassing leading international business organizations, including ICC, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More at www.uscib.org.

Contacts:
Andrew Wilson, ICC
Tel:  +33 6 70 49 68 74
andrew.wilson@iccwbo.org

Jonathan Huneke, USCIB
Tel: +1 212 703 5043
jhuneke@uscib.org

ICC Marketing Commission Takes Action on Several Fronts

On December 5 in New York, USCIB helped host a semi-annual meeting of the International Chamber of Commerce (ICC) Commission on Marketing and Advertising. It was, in the words of one member, among the most productive the commission has held in recent memory, with approval of several key statements on global marketing practices and regulatory challenges.

For eight decades, ICC has played a critical role in developing cross-border standards for marketing and advertising. The Consolidated ICC Code of Advertising and Marketing Communication Practice is the gold standard for self-regulation of the industry. Since its introduction in 1937, it has served as the foundation and cornerstone for the codes of most self-regulatory systems around the world.

The ICC commission is chaired by Brent Sanders (Microsoft), who also chairs USCIB’s Marketing and Advertising Committee. We will circulate reports on individual initiatives in the days and weeks to come, but here is an overview of the meeting’s major outcomes, as reported by USCIB Vice President Jonathan Huneke:

  • A new ICC Statement of Code Interpretation/Reference Guide on Advertising to Children has been approved by the ICC Executive Board.
  • Members are nearing completion of a new ICC Guide for Responsible Mobile Marketing Communications.
  • Work is beginning on expanded ICC guidelines on online behavioral advertising, to address issues related to mobile such as location data.
  • Members endorsed a draft ICC paper on labelling and packaging measures impacting on brand assets, developed jointly with the ICC Commission on Intellectual Property. Following approval by the ICC Executive Board, the document will be disseminated for advocacy purposes by affected industries in specific countries.
  • The commission is gearing up for a full revision of the Consolidated ICC Code in conjunction with its 80th anniversary (in 2017) as well as ICC’s centennial celebrations in 2019.

At OECD, Business Communicators Confront Challenges of Populism

USCIB Vice President Jonathan Huneke (2nd from left) and heads of communications from other Business at OECD affiliates gathered in Paris.
USCIB Vice President Jonathan Huneke (3rd from left) and heads of communications from other Business at OECD affiliates gathered in Paris

With a populist wave of anti-globalization sentiment washing over many Western countries – or threatening to do so – Business at OECD (BIAC) convened a first-ever roundtable of heads of communications from its member federations, to discuss the urgent challenge of promoting informed discussion of cross-border trade and investment with an increasingly skeptical public.

The roundtable, which took place December 7 at OECD headquarters in Paris, assembled business communicators from a dozen OECD member states, including USCIB Vice President Jonathan Huneke. They discussed common – and, in many cases, unique – challenges they face in their own countries, and brainstormed ways to push back against the rising tide of isolationist and anti-trade rhetoric.

“It’s no secret that the election results in the United States, coupled with the Brexit vote in Britain and the recent popular referendum in Italy, have dealt a stinging rebuke to pro-trade forces, both in business and government,” said Huneke. “We need to marshal the facts, and develop more compelling arguments, in favor of open markets, multilateral cooperation and greater global integration.”

Participants at the roundtable met with Anthony Gooch, the OECD’s director of public affairs and communications, as well as Adam Roberts, European business correspondent with The Economist. BIAC Secretary General Bernhard Welschke also participated. One common theme that emerged is the importance of rebutting populist anger without appearing to talk down to voters who subscribe to it.

“Angry people often behave irrationally, but that doesn’t mean that there isn’t a rational basis for their anger,” Huneke noted. “We agreed on the need for policy makers to take voter unhappiness seriously and address its underlying causes, including insufficient opportunity and social safety nets in many countries. But we also know that it is our shared responsibility to develop more effective ways of helping people understand the broad, and indisputable, benefits of economic openness to society and to individuals.”

The OECD plans to hold a workshop for communications professionals involved in international trade in April 2017. More details will be shared as planning for the program develops.

While in Paris, Huneke also attended the annual Business Day at OECD, where BIAC members met with leadership and program directors from the 35-nation body to discuss a wide range of issues and priorities. Check back here shortly for a report on Business Day.

Berlin Meetings Kick Off Germany’s G20 Host Year

Co-Chair Kathryn Porter, Hilton International; Co-Chair Mthunzie Mdwaba, IOE VP for Africa; Co-Chair Peter Robinson; Chair Gerhard Braun, Vice President of BDA
Co-Chair Kathryn Porter, Hilton International; Co-Chair Mthunzie Mdwaba, IOE VP for Africa; Co-Chair Peter Robinson; Chair Gerhard Braun, Vice President of BDA

On December 1, the first full meeting of B20 members during Germany’s G20 host year was held in Berlin. The B20 brings together private-sector representatives from each of the G20 nations and provides official input and advice to the G20. This year’s G20 Summit will be held July 7-8 in Hamburg. The B20 Summit will take place May 2-3 in Berlin.

USCIB President and CEO Peter M. Robinson took part in the December 1 event in his capacity as a Co-chair of the B20 Employment and Education Task Force, which met in parallel with all other B20 Task Forces, and for which the IOE serves as Network Partner. The International Chamber of Commerce (ICC), for which USCIB also serves as U.S. affiliate, serves as Network Partner for other B20 Task Forces including Trade and Investment.

Because of the compressed schedule for 2017 – the G20 Summit has generally been held in the fall – Germany is proceeding with an accelerated work plan, and has entered into close cooperation with the B20 in support of a manageable yet ambitious agenda.

The December 1 conference brought together all Task Forces and cross-thematic groups. It gave members of various B20 working groups the opportunity to continue their work on policy proposals, and featured addresses by leading G20 and B20 representatives. The conference was opened by German Minister of Finance Wolfgang Schäuble and B20 Chairman Jürgen Heraeus. Lars-Henrik Röller, Head of the Federal Chancellery’s Economic and Finance Division and G7/G20 Sherpa, also participated. His B20 counterpart, Stormy-Annika Mildner of BDI, played an important organizational role in the conference.

B20 Germany is co-hosted by the Federation of German Industries (BDI), the Confederation of German Employers’ Associations (BDA) and the Association of German Chambers of Commerce and Industry (DIHK)—all three USCIB partners in its global network for Business at OECD/BIAC, International Organization of Employers (IOE), and ATA Carnet, respectively.

The theme of the Conference was “Resilience, Responsibility, Responsiveness—Towards a Future-Oriented, Sustainable World Economy.” The B20 issued a statement calling for open markets and inclusive growth, entitled “Make Trade Work for Everybody. Initiated in response to troubling emotional rhetoric taking place around the world, the statement began with:

“The B20 is deeply concerned about current anti-globalization sentiments, which can be witnessed in many countries around the world. Increasingly, communities are voicing strong opposition to trade liberalization and international investment. We need to take these concerns seriously and support communities during times of change and disruption. At the same time, seemingly easy solutions risk having long-term negative consequences for business, workers, and consumers. We urge governments to resist the temptation to resort to protectionist measures such as trade barriers or investment restrictions”

Click here to read a B20 Statement for Open Markets and Inclusive Growth

G20 Scorecard

At the Berlin meetings, the International Chamber of Commerce (ICC) unveiled the latest edition of ICC G20 Business Scorecard, rating G20 responsiveness to key business policy priorities for growing the global economy, while revealing important missed opportunities G20 nations group to advance international trade and key international policy frameworks.

ICC Secretary General John Danilovich noted that ICC “is encouraged to see that G20 work is becoming increasingly responsive to priority recommendations put forward each year by business that aims to spur economic growth and job creation.”

The 2016 ICC Scorecard examined 25 business priorities developed during the Chinese B20 cycle and rates the G20’s responsiveness across seven policy areas. The overall score of 2.3 out of 3.0 across all seven policy categories marks the highest overall score since ICC began its monitoring. However, despite the positive overall trend, progress is shown to be uneven.

Click here to view the full results of the ICC Scorecard.

Business Welcomes OECD PISA Survey Results

OECD’s Program for International Student Assessment (PISA) is a triennial international survey which aims to evaluate education systems worldwide by testing the skills and knowledge of 15-year-old students. In 2015 over half a million students, representing twenty-eight million 15-year-olds in seventy-two countries and economies, took the internationally agreed two-hour test. Students were assessed in science, mathematics, reading, collaborative problem solving and financial literacy.

Commenting on the public release of PISA’s 2015 survey results, Charles Fadel, chair of the Business at OECD (BIAC) Education Committee said, “Employers around the world value the importance of data, and PISA, as a unique instrument in its reach and quality, is the respected influential benchmark which BIAC supports.  However, as the world continues to evolve, so must PISA. BIAC will continue to collaborate with the OECD in expanding and improving measures in other skills and areas relevant for employability, such as entrepreneurship, engineering, creativity, critical thinking, ethics and leadership.”

Education and training are top priorities for business especially in a rapidly changing dynamic work place of today.  Investment in training and access to quality education for all are essential to foster innovation and inclusive growth in our economies. PISA is an important benchmark and comparative analysis towards this goal. The link to the 2015 survey results can be accessed here.

For further information on Business at OECD work on skills and education please visit: BIAC Education Survey and BIAC Character Survey.

What’s New at IOE?

The International Organization of Employers (IOE) is staying busy in December and has multiple events on the calendar for 2017. From a Global Employers Summit to an International Conference on Business and Human Rights, see here for their upcoming events, news and more!

USCIB Welcomes New Staff Members

USCIB welcomes Mia Lauter, who joined USCIB’s Policy Department in New York to work on Environment, Climate Change, Product Policy and Innovation issue areas. She joins another recent hire, Elizabeth Kim, who joined earlier this year to focus on Corporate Responsibility, Labor, APEC, Competition and China.

Additionally, Kira Yevtukhova has succeeded Chris Zoia as Communications Manager after working in USCIB’s Policy Department for over five years. She will be based in USCIB’s Washington office. Chris has taken a new position with the Freedom Fund.

Please join us in welcoming and congratulating Mia, Elizabeth and Kira.

The Uncertain U.S. Role in Global Tax Debate

BEPS TaxationUSCIB’s vice president for tax, Carol Doran Klein, has recently been quoted in Bloomberg Government amid uncertainty around the U.S. role in global tax rewrite under President-elect Trump’s administration. Among the various issues, the project on tax base erosion and profit shifting (BEPS) will likely not unravel. Doran Klein trusts that the BEPS project will be included in the new administration’s ongoing work, hoping that the U.S. will “continue to participate actively because having the U.S. Treasury at the table makes the rules more likely to reflect the concerns of the U.S. as a government and the U.S. business community.” She goes on to say that there are “many countries that are getting significant benefits from the BEPS project, including things that have already been implemented, such as the reporting requirements.”

Read the whole story here. Please note you need a subscription to Bloomberg Government for full access.