Should third mobile operator Cell C be found guilty of producing disparaging advertising material within the next six months, it will have pre-clearance sanctions placed on it by the Advertising Standards Authority of SA (ASA).
This is on the back of a recent ASA ruling in favour of MTN, after complaints to the authority that Cell C's radio and television advertisements for its '99 Cents for Real' product were disparaging to MTN's brand.
While Cell C appealed the ASA directorate's ruling that its adverts were indeed disparaging and "do not add value to the brand but give the distinct message that a competitor's product should be discarded", the Advertising Industry Tribunal (AIT) dismissed the appeal.
In light of previous complaints brought against Cell C, MTN requested the ASA impose sanctions on the operator.
While the authority said it could demand Cell C get pre-clearance advice prior to publication of future adverts - at the company's own expense - because it did not deem the previous issues MTN had with Cell C's adverts as disparagement, it has suspended the sanction.
"However," says the ASA, "this sanction is suspended, provided [Cell C] is not found to contravene Clause 6 of Section II (Disparagement) in the six-month period following the date of this ruling [25 July]."
MTN's chief marketing officer Serame Taukobong says MTN is "pleased with the favourable ruling" towards its brand.
In its response to the ASA's threat of sanctions, Cell C said it had worked hard at producing advertising that is compliant with the ASA Code.
"This is evident from [Cell C's] clean history in the last 12 months. In the matters at hand, [Cell C] has the bona fide belief that, whilst pushing the envelope, it was within the boundaries of the code."
MTN's latest complaints are against Cell C's radio advert that refers to the "yellow-bellied special of the week bullhockey". The yellow operator maintains this is "intentionally directed at MTN with a deliberate intent to disparage MTN".
MTN further appealed to the ASA to take "serious action" against Cell C: "This radio commercial, together with the commercials ruled against, are indicative of Cell C's persistent bad faith approach to advertising and is clear evidence of Cell C's flagrant disregard for the code.
"Should Cell C's conduct not attract serious consequences, Cell C will continue to target MTN and its products in its advertising and will continue to bring advertising into disrepute."
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