ARCON Intensifies Fight Against Unethical Digital Ads, Cites AI and TikTok Scams
Dr. Lekan Fadolapo, Director General of the Advertising Regulatory Council of Nigeria (ARCON), has raised serious concerns about the growing challenges of ensuring ethical advertising practices, particularly with the advent of the expansive digital economy.
Speaking recently at the Advertising Standards Panel (ASP) Stakeholders Forum organised by ARCON in Lagos, Dr. Fadolapo highlighted the “big major challenge” posed by online mediums compared to traditional media.
Dr. Fadolapo explained that while traditional media, encompassing out-of-home, news, and broadcast, relied on physical addresses and locations, the digital economy transcends geographical boundaries. “Somebody can sit down in another market and throw advertising into our market,” he noted, underscoring the complexity for regulators to ensure compliance with responsible advertising practices in both traditional and digital spheres.
The ARCON Director General cited several recent examples of problematic advertising content. He mentioned a recent incident involving an AI-generated advertisement featuring a pastor promoting a prostate cancer drug. He also drew attention to the prevalence of financial services ads on platforms like TikTok that offer significant discounts or make claims that cannot be substantiated, often appearing within just a few scrolls.
A particularly impactful example shared by Dr. Fadolapo involved a property company that used celebrities to advertise land sales, leading to widespread subscriptions. Weeks later, the celebrities publicly disassociated themselves from the sales, claiming ignorance of fraudulent activities. This resulted in an oversold scenario where the company received money for more plots than available, creating significant issues for consumers.
The economic ramifications of such unethical and fraudulent practices are severe. Dr. Fadolapo stated that these activities have a “multiplier effect on the economy and the consumers”. He revealed that between 1.2 and 1.5 trillion naira, averaging 1.3 trillion naira, was reportedly taken out of the economy through CBS, leaving those affected in dire situations.
Amidst these challenges, Dr. Fadolapo announced a significant development for ARCON’s regulatory powers. He disclosed that the Federal High Court recently issued a judgment making “far-reaching decisions” regarding ARCON’s authority, including resolving a prior issue involving “Apple and ARCON”.
This marks a crucial step forward, as ARCON had previously faced difficulties, losing “so many cases when we were a law that the content of this current law”.