Joel Volkov: Conflict of values in three acts
In a situation where Health Minister Riina Sikkut decides to trust incompetent and biased advisers over the economy minister, Estonian businesses and the people in their choices, why should citizens trust their state, Joel Volkov asks.
The process of arriving at the legislative intent document for the new Advertising Act has been a kind of litmus paper for administrative culture in Estonia. It is a modest and politically insignificant act on which no political party's income depends, while it is crucial for Estonian companies, the competitiveness of the local media sector, and free speech.
In truth, the law could simply be a regulation and updates introduced by way of the economy minister's signature. But no. We love laws in this country and probably have most of them per capita. Divide et impera!
Looking at the demagogy that has accompanied legislative intent to amend this unimportant little law, one gets the impression that driving wedges between people using lies has become the political norm. The Social Democrats especially stand out. I went straight to the source of the Social Democratic Party's self-regulation to understand to what extent they observe their own ethics principles.
The state must be honest
The Social Democrats' manifesto reads: "The state must be honest and transparent for everyone to have certainty that their contribution goes toward universal benefit, reducing social stratification and creating a safe and fair society."
Minister of Health Riina Sikkut (SDE): "It is neither ethical nor practical to allow free advertising of healthcare services, nor do patients benefit in any way from it."
It is said in the new Advertising Act's legislative intent document that it should be analyzed whether and under what conditions certified health services providers could be allowed to advertise their services. For example, the Health Board currently requires medical institutions to organize campaigns for health screening and vaccination drives, while the Advertising Act prohibits them from doing so. A paradox the minister responsible for the field should be up to speed on.
One is hard-pressed to understand how a patient stands to lose from having competing health offers. The minister's claim seems to be rooted only in the Soviet-in-nature prejudice that only schmucks advertise themselves. The reality is just the opposite as advertising is a privilege of the successful and ambitious. And this is true in every field.
Sikkut says: "Seeing alcohol advertised increases alcohol consumption, whereas this effect is bigger in men than in women."
A claim based on nothing at all. No such study has ever been carried out in Estonia. Men drink more than women everywhere in the world. It comes down to the physiological difference between the sexes.
The facts tell us that over the last three years, during which alcohol advertising has been dialed back following the initiative of the Social Democrats, alcohol consumption has grown by 30 percent. Using the minister's logic, one might claim that a nationwide study over five years showed that alcohol advertising restrictions increase consumption. A more restrained interpretation could be that restricting alcohol advertising has no effect on how much alcohol is consumed per capita.
Understanding this fact should not be difficult for a minister with a background at the Praxis Center for Policy Studies. By the way, a broad-based study commissioned by the German Federal Ministry of Health recently arrived at the same conclusion – there is no link between advertising and overconsumption of alcohol. Let it be said in the interests of providing context that alcohol advertising makes up 0.9 percent of the Estonian advertising market. Less than a million euros and less than what an average political party spends on a single general election campaign in Estonia.
Sikkut says: "It turned out that nearly 70 percent of ads played before or after animated shows or on channels meant for kids were unsuitable for children based on previous agreements."
Here, the minister is pointing to an agreement between television networks belonging to the broadcasting union for culinary advertisement restrictions for children and a University of Tartu study from 2023 to monitor their effects. Her aim is to demonstrate that market-wide ethics and self-regulation agreements do not work.
Sikkut might not be aware of the fact that TV advertising planning happens nationwide based on a regular television audiences study by pollster Kantar Emor, as opposed to the discretion of customers. Every show has a rating to determine whether a critical number of viewers 12 or younger tune in.
The University of Tartu study did not consider this parameter, nor did it approach Kantar Emor for the information. They proceeded based on the World Health Organization's international guidelines, which do not consider local rules and customs. The university's study also failed to distinguish between advertising, commercial messages, sponsorship information and trademark visibility.
Not everything that's on screen is advertising. We need more specific rules for this matter to be cleared up. Esteemed minister, incompetence does not exempt one from responsibility and methodically lopsided studies cannot serve as a criterion of the truth. This is also a good place to recall that Estonia has its own rules and laws and the country is not subject to the WHO.
Of economic sustainability
The Social Democrats' manifesto reads: "Economic sustainability requires the state and civil society organizations to take mutual responsibility for shaping social processes, preventing crises and alleviating their effects." ERR on Sikkut's attitude regarding the idea of advertising market self-regulation: "Sikkut remarked that recent attempts to allow businesses to make the rules have not yielded successful results."
The stock market's good corporate governance practice, the Estonian Chamber of Commerce and Industry and its court of arbitration, the insurance dispute arbitration, the Estonian Press Council, political parties and other regulatory bodies and rules created by entrepreneurs or representatives of other walks of life are a longstanding phenomenon in Estonia. Some have been active for over a century. Can we say that they have all of them failed? Unlikely.
Shahriar Coupal, director of advertising policy at the U.K. Advertising Standards Authority (ASA), demonstrated, during a recent visit to Estonia, how Great Britain has been doing well with self-regulation since 1961. This frees up U.K. politicians to concentrate on their real job – politics. Whereas the local advertising market, which is 200 times the size of Estonia's, is perfectly capable of taking care of business. I doubt the Brits came to Estonia just to lie to us. Or perhaps the minister simply does not believe that the state and civil society organizations are capable of assuming responsibility?
Sikkut on logic: "Why spend so much on advertising if it does not increase the number of people who gamble or take out payday loans."
I agree that we should not contribute to advertising that promotes gambling (even though the state does it on a grand scale through Eesti Loto). And making fast credit available to people already up to their eyeballs in debt is definitely bad.
Let us take a look at what the law says: gambling advertising is banned (whereas this should also apply to state-owned companies, or it should be universally allowed). Gambling operators can only display sponsorship messages, and even there have clear restrictions.
Let us also check what the law has to say about fast credit. It turns out that there is no such thing as a "fast loan." Not in any piece of legislation or on any bank's price list. As someone who has at one time worked for Swedbank, the minister might know this.
The financial services advertising guide even clearly provides that credit services advertising must not make the case for expediency. So what are we talking about?
Are the Social Democrats bothered by the fact that gambling companies and credit providers exist in the first place, including by sponsoring Estonian athletes? If so, I would like to ask, in the interests of sustainability, what is the minister's backup plan for sports financing after gambling operators and lenders also give up sponsorship. No other field, nor indeed the government could or would be willing to fill the hole this would create. Or should it be left up to the Reform Party's culture minister to solve this self-made crisis?
Striving for consensus
The SDE manifesto goes on to say: "Governance needs to aim for consensual and participatory democracy in Estonia, as opposed to alienation of authority and arrogance."
Were the Advertising Act discussion the only official process in which the Social Democrats, as a minority stakeholder, are demonstrating factious instigation, desire to score points and arrogance... But a look at the media tells us it is no exception. Advertising, energy, food industry, finance, citizenship, education, the city of Tallinn – everywhere the same forces, same people are the catalysts.
The Social Democrats have long been talking about a conflict of values in society. And indeed there is one. However, there would be much less of it if outspoken leading Social Democrats would practice what they preach in their manifesto. I know several members of the party who go about their job in harmony with their tenets. I also know many sympathetic people who always vote for the Social Democrats.
However, if a minister with in-depth knowledge of healthcare, banking and social studies (no matter how nice as a person, according to journalist Mikk Salu) faces the public with demagogic lies even in something as small as amendments to the Advertising Act, it cannot be described as aiming for consensus and participatory democracy. It is the opposite.
In the end, these are matters of trust. If the health minister decides to trust incompetent and biased advisers, but not the economy minister, Estonian businesses and the people's choices, what should be the people's trust in their government?
Why should women give birth, businesses invest and pay taxes, reservists show up for trainings and different camps look for compromise in such a situation? A malicious campaign of slander and humiliation recently saw a capable general retire. I'm afraid that if our rulers fail to adjust their attitude, the more capable and progressive part of society might decide to retire in corpore at some point.
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Editor: Marcus Turovski