Food Advertising Code Submission

Submissions of the New Zealand Retailers Association to the Advertising Standards Authority in respect of The 2005 Review of Children's and Food Advertising Codes

March 2005

Introduction

This summary submission is presented on behalf of the New Zealand Retailers Association

Background

The Association is the largest trade association involved in the distribution industry in New Zealand.

We represent an industry that has annual sales of $54b and which employs some 325,000 people (17% of the workforce) in some 49,000 outlets throughout the country.

Our general membership includes the major supermarket and general merchandise chains, specialised chains, traditional department stores and thousands of owner operators spread throughout the country.  We also service a number of specialised trade groups of plumbing materials suppliers, metal fastener distributors, bicycle dealers, pet shops, jewellers and equestrian suppliers.

Our smaller members include many food retailers including convenience stores, grocery stores, delicatessens, bakeries, restaurants, cafes and confectioners.  We also work closely with other food retailing interests and grocery marketers through the NZ Grocery Industry Council and consider that our membership includes representatives of the full spectrum of food retailers in New Zealand.

Summary of Submission

The Association has not, to date, made submissions on either the Food Advertising or the Children's Advertising Codes.  However, it is quite clear that the current review has solicited calls for the banning of advertising of certain types of 'unhealthy foods' and, to that end, we consider it is important that we make a brief submission on this issue.

Put simply we believe that if a product is legal to sell then it should be legal to advertise.  We are aware that currently only one type of product namely tobacco is legal to sell but illegal to advertise.  However, notwithstanding that, there are public calls for the banning of advertising of certain types of fast foods in the context of the current review.

The Association is mindful that there have been previous calls for advertising bans on these types of foodstuffs in the context of the Government's 2003 Review of public health legislation.  At that time we consulted our major members and advised that we did not support the idea of an advertising ban as we saw that it was primarily an individual's responsibility to determine the nature of his or her daily dietary intake.  We added that any regulatory making powers that resulted in a ban on the advertising of fast food would also raise questions about the inevitable flow on effects to other types of bans for other types of products.

Within the past two years the Association and the supermarkets have been involved in programmes associated with better dietary intakes such as the Health Eating - Health Action initiative by the Ministry of Health, and, more recently, with the Obesity Accord which was signed off in August 2004 between five industry sectors involved in the food industry in New Zealand.

This latter document included a public commitment by business to work collaboratively to reduce obesity, improve nutrition and increase physical activity.  We believe that these initiatives should be allowed to run their course before any decisions are made that could regulate the advertising or sale of particular types of food or general merchandise on the New Zealand market.  Whilst it is a wider issue that the Code itself, we feel that there is a need to devote more educational resources to the promotion of healthy food and to the benefits of regular exercise. 

We note that the Adverting Standards Agency successfully operates a number of voluntary codes for other industry sectors in addition to those relating to food and children's advertising which clearly have been in place for some years and obviate the need for government regulation.  Equally other industry sectors, such as the NZ Juice and Bottled Water Association, operates a Voluntary Codes of Practice relating to the composition and labelling of juice and water which is designed to mitigate the need for regulatory interference.  Other examples of successful voluntary Codes of Practice are those issued by the NZ Direct Selling Association as well as the NZ Direct Marketing Association.

In summary, we feel it is important to stress that our members are in the business of selling 'safe  food'  and submit that unless a particular type of food is banned from direct sale to the public for 'safety' reasons then we do not consider that any advertising ban is warranted.

We are more than happy to meet with the Review Committee to discuss our submission if such a discussion would be helpful.

New Zealand Retailers Association

March 2005