22 - Advertising Liability Controls

Advertising Controls are the processes put in place to manage the insured’s activities relating to advertising. Typical controls to manage advertising liability exposures include documented legal review of all advertising materials, research into potential infringements to Intellectual Property (IP) rights, awareness training of exposures relating to copyright/trademark violation, slander, defamation, selection of reputable vendors for advertising.

What do we look for?

Exposures

  • Lack of editorial control and legal review procedures.
  • Weak or no systematic control for prevention of copyright or trademark infringements.
  • Poor data protection practices.

Controls

  • Proper systematic legal review of all published/produced material.
  • Strict formal policy on copyright issues.
  • E-mail, monitoring and IT content controls.
  • Awareness training for liability risks from advertising and electronic media.

  • Develop an awareness training program to identify likely exposures and corresponding precautions.

  • Contractor selection process should include review of advertising vendors and legal review of material.

Useful Resources
Standards

  • British Code of Advertising, Sales Promotion & Direct Sales Marketing 2003 (CAP Code).