Terms of Reference of the ICC Code Interpretation Panel
Commission on Marketing, Advertising and Distribution, March 2001

Introduction

As an important part of its well-established policy of promoting high standards of ethics in marketing by self-regulation, ICC issues International Codes of Conduct. The intention is to provide guidance by means of time-resistant and flexible principles. The Codes are framed so as to make them consistent, clear and transparent. Nevertheless, the need for further clarification may arise, particularly as new markets emerge and new marketing concepts and vehicles are introduced. Therefore, ICC is offering ICC national committees and other interested parties, an interpretation service. For this purpose, within the framework of the ICC Commission on Marketing, Advertising and Distribution, a specialized Interpretation Panel has been set up that will produce reasoned Opinions in response to the questions raised.

The ICC Code Interpretation Panel

Article 1
The function of the ICC Code Interpretation Panel is to clarify the meaning of ICC Marketing Codes and Guidelines:

• ICC International Code of Advertising Practice
• ICC International Code of Environmental Advertising
• ICC Internation al Code of Sales Promotion
• ICC International Code of Direct Marketing
• ICC Guidelines on Advertising and Marketing on the Internet
• ICC International Code of Direct Selling
• ICC International Code on Sponsorship
• ICC/ESOMAR International Code of Marketing and Social Research Practice

Composition and appointment

Article 2
The ICC Code Interpretation Panel may be called upon as and when the need arises. The decision rests with the Chair of the ICC Commission on Marketing, Advertising and Distribution. The Panel may cover one or more interpretation questions at a time. The Panel shall be composed of Standing Members and, where appropriate, Specialist Members.

Article 3
As Standing Members, a group of three persons shall be appointed, one of them as the Panel Chair. They shall be selected so as to provide amongst them knowledge of the ICC Code system and expertise in self-regulation and marketing ethics in general. Standing Members shall be appointed for a period of no more than three years (renewable) by the ICC Secretary General, acting on the proposal of the ICC Commission on Marketing, Advertising and Distribution. In appointing Standing Members, considerations will be given to their nationality, availability and ability to conduct the procedure in accordance with the Terms of Reference.

Article 4
Where specialist expertise is required, additional members may be seconded to the Panel. The Panel Chair may appoint up to three such Specialist Members on an ad hoc basis.

Article 5
A quorum shall consist of at least two Standing Members and, where applicable, one Specialist Member.

Article 6
The Secretary of the ICC Commission on Marketing, Advertising and Distribution shall be the Secretary of the Panel.

Competence

Article 7
The Panel shall examine the interpretation question(s) put before it. In response the Panel shall issue a reasoned Opinion, which shall relate to specific articles of the Codes, and/or the general spirit of the Code(s) concerned.

Article 8
The Panel shall provide interpretations in principle. It shall not act as arbiters and not take a position on individual cases. This does not preclude the Panel being consulted for interpretation in conjunction with such a case.

Requests for interpretation

Article 9
Any firm, company, business, association, court of law, public authority, or self-regulatory body, or private individual, as well as ICC national committees, may act as an Applicant and file a request for interpretation. Requests shall be addressed to ICC International Secretariat.

Article 10
The request shall be made in writing or other durable format, and shall specify in what respect(s) clarification is sought. Also, it shall be supported by a statement outlining the background of and the reasons for the request. Applicants may also submit any other information of relevance to the request.

Article 11
The Chair of the ICC Commission on Marketing, Advertising and Distribution may on his/her own initiative refer questions to the ICC Code Interpretation Panel.

Article 12
The decision to entertain a request or not shall be based on an assessment of the importance of providing the clarification(s) in question, particularly with regard to international aspects and matters of principle involved.

Furthermore, it shall be taken into account whether it is feasible to arrive at a sufficiently clear interpretation on the basis of the request and the submitted documentation and/or complementary information that can be obtained with reasonable effort and cost.

Languages

Article 13
Requests for interpretation shall be presented in one of the official languages of ICC, namely English or French.

Procedure

Article 14
The primary objective of the Panel is to produce high quality Opinions. This shall be done without undue delay. For each request the Panel shall lay down a timetable and notify the Applicant as to when the Opinion can be expected. The timetable may be modified when there are valid reasons, such as need for more information.

Article 15
The Panel may work by means of physical meetings, e-mails, telephone conferences and the like, or a combination of these. The Chair shall, in consultation with the other Members, decide on how to proceed. Members are obliged to respond to drafts and other working documents within the time limits set by the Chair.

Article 16
The Panel shall hand over a Draft Opinion to the Chair of the ICC Commission on Marketing, Advertising and Distribution for confirmation. When confirmed, the Opinion is final and without appeal. As the objective is to provide guidance on matters of principle, the Opinion shall be published in full text, unless strong reasons against publication have be en presented.

If the Draft Opinion is not confirmed, the Chair of the ICC Commission on Marketing, Advertising and Distribution shall send it back to the Panel for review, together with an explanatory statement. After that, paragraph 1 applies.

Before confirming the Draft Opinion, the Chair of the ICC Commission on Marketing, Advertising and Distribution may, where he/she finds it appropriate, seek the advice of the ICC Commission with regard to the Draft as a whole or particular issues pertaining to it.

Challenge

Article 17
No Members being associated with the Applicant or having such an interest in the matter at hand that they could not be seen to be independent, shall participate in the deliberations of the Panel.

Decisions

Article 18
The Panel shall work with a view to reach consensus on the Opinion. In the event of a split, the decision shall be taken by a majority vote, the Chair having the casting vote.

Expert advice and complementary information

Article 19
The Panel is entitled to seek expert advice in any appropriate form. Furthermore, the Panel may obtain and use any information needed for its task to be properly carried out.

Confidentiality

Article 20
Panel deliberations shall be confidential. Only the Members and the Secretary shall have access to the internal documents of the Panel. All are pledged to confidentiality.

Fees and costs

Article 21
In principle, the services of the ICC Code Interpretation Panel are free. Where a request can be foreseen to incur extra costs, the Chair of the ICC Commission on Marketing, Advertising and Distribution may decide on a fee to be paid by the Applicant up front. Should expert advice and/or complementary information in accordance with Article 19 be needed, the Panel Chair may decide that the applicant shall cover the costs incurred thereby. If fees thus fixed are not paid, the interpretation request shall not be entertained.

Copyright March 2001