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He says: "After a string of complaints about Ryanair's advertisements and an unwillingness on the part of Ryanair to comply with adverse rulings, the ASA has taken the ultimate step and referred Ryanair to the OFT."

"The ASA, which has found Ryanair in breach of rules seven times in two years, has referred Ryanair to the OFT under the Control of Misleading Advertisements Regulations 1988 (as amended). Such a move is very rare."

Ryanair has already complained to OFT about its treatment by the ASA, accusing it of demonstrating "a repeated lack of independence, impartiality or fairness where Ryanair is concerned by making factually inaccurate and untrue findings in response, in some cases, to totally baseless and unsubstantiated alleged complaints".

However, according to the ASA, Ryanair has "repeatedly breached" the Code of Advertising Practice (CAP) Non-Broadcast Advertising Code, which is designed to protect consumers and promote fair competition, through misleading and unfair comparisons. The ASA also found Ryanair in breach of the Broadcast TV Advertising Standards Code.

Formal referrals to the OFT by the ASA are rare, the most recent being in 2005, and are only made once it has been established that an advertiser is unable to work within the rules.

Casey says: "The current powers of the ASA, which governs only paid-for space, have generally been viewed as having an impact more on an advertiser's reputation than on the bottom line. For example, the ASA cannot impose fines and its sanctions are generally in the form of publicising unfavourable adjudications."

This latest move, he says, is an important signal that the ASA is not prepared to put up with repeat offenders against the CAP codes, which set out the non-legal rules with which advertisers in the UK must comply. It comes ahead of the new Consumer Protection regulations due to come into force in May that will give governmental agencies increased powers to stop trading activities that unfairly mislead consumers.

Casey says: "This action comes at a time when the advertising industry is under fire from the Government for failing to exercise control over enough online advertising. The threat to advertisers is that the Government will impose further legislation if the industry does not extend its currently narrow scope of power in the online field. "

"If the advertising industry does extend its sphere of competence as current consultations intend, making an example of Ryanair will send a message to the Government that the self-regulatory system does work, and that there are suitable escalation provisions for serial offenders. If the system works, then the lack of hard legislation will continue to allow creative freedom which in turns results in world-beating, legitimate advertising."