ADVAN files new lawsuit against ARCON

By Zion Rufus

The legal battle between ADVAN and the Advertising Regulatory Council of Nigeria (ARCON) continues unabated as their divergent interpretations of regulatory frameworks continues to lead to a standoff that shows no signs of immediate resolution.

Responding to the news of the withdrawal of its lawsuit against ARCON which had made its rounds over the past week, ADVAN President, Osamede Uwubanmwen stated that after consultations with their legal representatives and in light of pertinent developments, they withdrew the initial case against ARCON and filed fresh actions against them.

“The withdrawal was strategic,” Uwubanmwen emphasized in an exclusive conversation with MARKETING EDGE midweek. His words: “We are committed to ensuring fair regulations for our members and upholding the integrity of the marketing profession in Nigeria.”

Osamede further revealed that the new proceedings have been carefully reviewed to ensure complete redress from all anomalies of the agency.

“So many developments have been shocking to people in the industry. It’s been two weeks since and there’s no truce. No one has reached out to ADVAN. For us, the withdrawal was an intentional move,” Uwubanmwen explained.

The latest disclosure clearly represents the true position of things regarding the current legal face-off between the two bodies on how best to achieve an investor-friendly marketing and advertising ecosystem in a hemorrhaging economic climate like Nigeria, signifying a strategic effort in galvanizing requisite stakeholders for victory in the ongoing legal tango.

While both parties continue to advocate for the sector’s growth and development, the legal saga between ADVAN and ARCON also reflects broader tensions within Nigeria’s advertising sector regarding regulatory oversight and industry relationships in practice.

For ADVAN, the legal action filed against ARCON in late 2023 is vital to protecting its members’ interests and upholding the integrity of the marketing profession in Nigeria while ensuring the rule of law prevails. Noting that several aspects of the new ARCON law are “clearly unconstitutional,” ADVAN stated that these provisions only position ARCON to regulate advertisers in ways that contradict global best practices.

This maneuver and decision to remain steadfast in litigation, revealing ADVAN’s deeply rooted stance in navigating industry dynamics independently, also follows their recent withdrawal from the Head of Advertising Agencies Sectoral Group (HASG). The resignation from HASG, communicated in a letter signed by CEO Ediri Ose-Ediale, was addressed to outgoing HASG Chairman, Olufemi Adelusi. While the letter stated that this decision resulted from careful consideration and extensive deliberation by the ADVAN Executive Council and its members, Adelusi expressed regret over ADVAN’s departure and highlighted HASG’s role in resolving issues through regular consultations. He noted that HASG has been actively engaging with ARCON to address the impacts of the new ARCON Act, social media regulations, and the reconstitution of the Advertising Standards Panel (ASP).

“HASG had a meeting with ARCON, and the DG acknowledged the need to work together as stakeholders to review various aspects of the regulation. ADVAN was briefed on the outcome of that meeting and even expressed willingness to consider withdrawing the current court case with ARCON. The timing of this exit is thus surprising, coming at a time when we are making progress with ARCON on these issues,” Adelusi said.

Also at the heart of ADVAN’s challenge is the question of ARCON’s authority to dictate contractual terms. The association contends that the AISOP introduced by ARCON contradicts the Nigerian constitution, which allows businesses to freely negotiate contracts.

The courtroom battle continues to unfold, with industry observers speculating on its potential implications for future advertising practices in Nigeria as ADVAN’s persistence in challenging ARCON’s regulatory authority highlights a grounded commitment to defending advertiser rights and maintaining a competitive marketplace.