FREEDOM OF COMMERCIAL SPEECH TRUST

INTRODUCTION
WHO WE ARE
The Freedom of Commercial Speech Trust is a relatively new body representing the Marketing & Communications Industries; Organised Business; and Consumer Bodies in all aspects pertaining to the freedom in flow of marketing communications.

WHY ARE WE HERE TODAY?
Whilst accepting and acknowledging that the paper before us is an inspired study for dealing with the present imbalance and the future needs of the SA populous we do have to inform you of the FCS Trust's concerns with certain of the detail in the White Paper for the "Transformation of the Health System in South Africa".

THE WAY FORWARD
To offer the Department and the Portfolio Committee an interactive, communicative relationship in terms of all future legislation pertaining to marketing communications.

Background to the formation of The Freedom of Commercial Speech Trust
1. The Constitution
2. Definition and understanding of commercial speech
3. Planned Legislation
4. Collective negotiation
5. Costs of the Trust

Membership
EXECUTIVE:
PRINT MEDIA ASSOCIATION (PMA: 600 members represented by NEIL JACOBSOHN)
BARBARA COOKE
ASSOCIATION OFADVERTSING AGENCIES (AAA: 60 members represented by NINA de KLERK)
ASSOCIATION OF MARKETERS (ASOM- 186 members represented by DERRICK DICKENS)
BEATRICE KUBHEKA
MPHO MAKWANA
PETER VUNDLA
THOMAS OOSTHUIZEN
NATIONAL CONSUMER FORUM (NCF representing 22 individual consumer bodies & their members)

TRUSTEES:
CINEMARK (DAVID KRYNAUW)
DIRECT MARKETERS ASSOCIATION (DMA: 250 members represented by DAVEY IVINS)
DIRECT SELLING ASSOCIATION (40 members represented by DR. HUGO SNYCKERS)
FRANCHISE ASSOCIATION OF SA (FASA: 210 members represented by JACK BARBER)
GROCERY MANUFACTURERS ASSOCIATION (GMA 51 members represented by NICK TSELENTIS) INTERNATIONAL ADVERHSING ASSOCIATION (IAA: 52 members: represented by BRIAN PUTTERGILL)
INTERNATIONAL ASSOCIATION OF BUSINESS COMMUNICATORS (IABC: 93 members PETER BLUM)
NATIONAL ASSOCIATION OF BROADCASTERS (NAB: 64 members represented by LYDLA JORDAAN, OUTDOOR ADVERTISING ASSOCIATION OF SA (OAASA: 48 members represented by TONY DAVIDSON)
PUBLIC RELATIONS INSTITUTE OF SA (PRISA: 1848 members represented by MARGARET MOSCARDI)

ASSOCIATES:
AMERICAN CHAMBER OF BUSINESS (AMCHAM- 260 members represented by LUANNE GRANT)
AHI (40270 members represented by JACOB DE VILLIERS)
INSTITUTE OF DIRECTORS (IoD: 1540 members represented by RICHARD WILKINSON)
SOUHI AFRICAN CHAMBER OF BUSINESS (SACOB: 40000 members represented by DAVID ALLEN)
COUNCIL OF SOUTH AFRICAN BANKS (COSAB: 43 members represented by BOB TUCKER)

OBSERVER STATUS:
FREEDOM OF EXPRESSION INSTITUTE (FXI represented by Raymond Louw)

EXECUTIVE DIRECTOR:
GRAHAM LANGMEAD

AWAITING CONFIRMATION:
BLACK BUSINESS COUNCIL BLACK MANAGEMENT FORUM
NATIONAL AFRICAN FEDERATION OF CHAMBERS OF COMMERCE
FABCOS
INSTITUTE OF MARKETING MANAGEMENT
NATIONAL CONSUMER FORUM
PHARMACEUTICAL MANUFACTURERS ASSOCIATION
spada DESIGN ASSOCITION

Definition
What FCS Trust stands for
"The legal right to produce...
bestows the right to promote (responsibly)...
which ensures the consumer's right to choose."

The resultant stakeholders are: -
MARKETING
COMMUNICATIONS
CONSUMERS

In other words
more information (not less)
results in a more informed and enlightened consumer
who then votes with their mind not their heart.

FCS Trust Objectives
To negotiate in an open and transparent manner the acceptance of the right to freedom of commercial speech
To protect the consumer from interference in his or her rights to make an informed choice
To ensure the continuance of self regulation of commercial speech

'To negotiate in an open and transparent manner the acceptance of the right to freedom of commercial speech'
Marketing at the heart of a market driven economy
it is the driving force in a successful economy
advertising is the commercial speech of marketing
it is the crucial consumers information system which informs and educates
marketing and advertising are legitimate business tools
they build strong brands
strong brands build strong economies
which creates a positive investment attitude & environment
invasion into the principles of marketing results in restrictive trade and a jittery investor, an under informed consumer and a nervous marketplace

'to protect the consumer from interference in his or her rights to make an informed choice'
the active promotion of the counter viewpoint is essential to an holistically informed consumer
free flow of responsible information without censorship creates and vibrant marketplace and economy
more information is needed not less
more education is better than less
responsibilities in respect of the marketing communication of certain products need to be addressed

'to ensure the continuance of self-regulation'
the advantages of self-regulation:
peer respect, acceptance and pressure
accepted and practised world wide
speedier
no cost to Government
one source and central control
25 years of experience
effective and efficient
the envisaged system for regulation of Marketing Communications

Reasons for our presence today
Awareness of the FCS Trust and what it stands for
Emphasise our constructive, consultative and negotiative attitude in all matters pertaining to Marketing Communications
Whilst clearly stating our objections to any interference, restriction, violation, and statutory control of the process of marketing and marketing communication
Begin to develop relationship and usefulness
Offer facilitation in Marketing Communications matters
Offer world-wide interface, information and experiences
Offer marketing and marketing communication process training
Re-emphasise that FCS Trust is not representative of nor a front for any individual product or product category

Some current examples
Tobacco (interaction with the Department and with the Anti-Tobacco League has resulted in acceptance and acknowledgement of the fact that all products are not born equal, yet the instant banning of advertising is not the solution to the problem of youth smoking).
Liquor
Breast Milk Substitutes (this product has a role in the lives of certain mothers and the banning of marketing puts at risk those children whose mothers need this product ... the mothers and other involved parties need more education = more information not less).
Pharmaceutical generics have a very definite role n the lives of a vast sector of our population. An understanding of these products and of the proprietary Brands is crucial. Responsible Marketing (and marketing communications) is the basis of such understanding.

A suggestion ...
Develop a holistic Youth programme
E.g. "Life be in it!
Educative; participative; fun and rewarding; new icons; new skills; new attitudes; new nation
= more in formation for a more in formed consumer and a more in formed consumer is a healthier consumer.

The Recommended Way Forward
Develop a consultative process which FCS Trust offers to facilitate with all of stakeholders.
Develop a negotiate attitude encompassing all of the stakeholders (legislators; marketers; communicators; and consumers).
Collectively review the proposed marketing impositions and come to consensus on the need and the action so as to avoid confrontation and conflict which bring with them the wrong signals to marketers and investors both here and across the globe.
Create a positive and constructive working environment conducive to a win/win attitude for all of the stakeholders.

Martin Luther King
"Knowledge is power"

Let's develop together a more in formed and therefore a more healthy SA consumer through acceptance of "The legal right to produce... bestows the right to promote...which ensures the consumer's right to choose."