Federal High Court gives ARCON regulatory power over digital and social media

The Federal High Court in Lagos has unequivocally affirmed that the Advertising Regulatory Council of Nigeria (ARCON) holds the statutory mandate to regulate advertising across every media, including print, broadcast, and most notably, digital and social media, closing any gap in its oversight powers.

On July 12, 2024, Digi Bay Limited (doing business as Betway Nigeria), its parent company, Super Group Limited, and Otunba Kunle Olamuyiwa sued the Nigerian federal government, through the office of the Attorney General, and the Advertising Regulatory Council of Nigeria.

The basis was to establish the scope of ARCON’s regulatory reach, specifically over advertisement on digital channels and ads published by individuals not registered with the regulatory body.

For this lawsuit, assigned the docket number FHC/L/CS/1262/2024 in the Federal High Court, Lagos Commercial Registry, Honourable Justice Aluko has now issued the court’s decision.

The ruling posits that ARCON holds jurisdiction over all forms of advertising, regardless of the platform or medium on which they appear. The judgment states that ARCON’s regulatory capacity doesn’t just cover registered advertising agencies, but also private individuals who engage in advertising activities. Justice Aluko emphasised that the determining factor is the nature of the activity, advertising, not the status of the individual or entity as a practitioner or non-practitioner.

A key topic of interest in the court’s ruling was its position on social media regulation. The court says ARCON can regulate advertising on platforms like Instagram, despite its private ownership status. In their argument, since it’s accessible to the public, what is being broadcast as an advertisement needs to be endorsed by ARCON.

Also, the court cleared the matter of whether ARCON has the right to slap fines on erring individuals or businesses. The ruling stated that while ARCON may issue letters of violation or infraction notices, the power to impose sanctions is wholly held by the Advertising Offences Tribunal.

Furthermore, it also held that every advertisement, whether produced by agencies, organisations or individuals, must be vetted and approved by ARCON before release.

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This cements ARCON’s exclusive authority over Nigeria’s advertising standards, and it definitely comes as a vindication for the body, especially in light of the antagonism they faced since transitioning from the Advertising Practitioners Council of Nigeria (APCON) to ARCON under a revised legal framework that extended the scope and influence of its powers.

Going forward, the ruling kicks off a new era of comprehensive oversight, extending regulatory reach across both traditional and digital media. All participants in the business of advertising would be mandated by law to comply with ARCON’s regulatory processes.