Government rejects call for ban on daytime TV payday loan ads

The government has said it will not ban payday lenders such as Wonga and Peachy from advertising during daytime and children's TV.

Payday loans: government overrules call for ban on ads during daytime TV
Payday loans: government overrules call for ban on ads during daytime TV

The government was responding to a select committee of MPs which, in December, called for a ban because children were being exposed to a high volume of payday loans commercials.

The government said that while it welcomed a series of proposals from the Financial Conduct Authority, including that "all payday lending adverts should carry a risk warning and should signpost to debt advice", it rejected the notion of an outright ban, insisting that the Advertising Standards Authority (ASA) provided sufficient protection for consumers.

"Payday loan adverts are subject to the ASA's strict content rules," it said. "The ASA will not hesitate to ban irresponsible adverts, and has a strong track record of doing so, including recent Wonga and Peachy adverts."

In December, the Business, Innovations and Skills Select Committee said that "research undertaken by Ofcom has shown that payday loan advertising is prevalent on daytime television and children's channels".

The select committee’s recommendations cited Ofcom research which said that children were exposed to nearly 600 million payday loan ads in 2012.

It said: "We do not believe that these are appropriate channels for payday loans. We recommend that payday loan adverts are banned from programming aimed at children."

In response, the government said yesterday that it understood concerns, but added: "it is also important to note that they comprise a relatively small 0.6% of TV ads seen by children aged 4-15".

Meanwhile, the Broadcast Committee of Advertising Practice is currently examining the issue of payday loans firms advertising on children’s TV and will consider whether the ASA’s regulations are sufficient.

Subscribe to Campaign from just £57 per quarter

Includes the weekly magazine and quarterly Campaign IQ, plus unrestricted online access.

SUBSCRIBE

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an Alert Now
Brands that forge an emotional tie are best protected from copycats
Shares0
Share

1 Brands that forge an emotional tie are best protected from copycats

Forging an emotional tie with consumers is one of the strongest ways to protect your brand. Products can be copycatted, but the distinctive identity of a true brand can never be replicated argues Nir Wegrzyn, CEO of BrandOpus.

Just published