The Real Cost of a Complaint

In the current regulatory landscape, a consumer complaint costs nothing to lodge, but it can cost your business thousands to defend.

Checkedit.ai is a Regulatory teams new best friend leading to fewer bottlenecks, lower volume of approval request, faster approvals and lower risk.

Even a complaint that is ultimately dismissed triggers an expensive chain reaction: legal triage, evidence gathering, and formal responses. Industry estimates suggest this process costs a business between $2,500 and $5,000 in external legal fees or diverted in-house resources.

If a complaint is upheld, the costs skyrocket. When factoring in wasted media spend, creative re-work, stock loss & withdrawal and reputational damage control, the financial impact ranges from $20,000 to potentially $millions.

In extreme cases, the cost is existential.

Real-World Impact: When Complaints Become Existential Threats

Wasted Media Spend & Packaging Recalls

A recent determination regarding appeal to minors on packaging forced a market leader to execute a total product recall and trademark rebrand: erasing potentially $ millions in brand equity overnight.

Rebrand & Packaging Recall

Following ABAC Determination 119/23, a market-leading brand was forced to recall stock nationwide and execute a total rebrand. When factoring in stock write-offs, reverse logistics, agency re-design fees, and wasted launch media, the estimated cost to the business was likely in the $ millions (both hard and reputation cost).

Checkedit.ai offers a smarter, faster and low-cost way to manage this risk.

As your always-on, 24/7 pre-vetting partner, Checkedit.ai catches compliance risks before they go through legal review or go public.

An in-house regulatory lawyer costs the business roughly $100-$150+ per hour, Checkedit.ai secures your campaigns for the price of a cup of coffee a day, ensuring when your legal team do review your creative their time is not wasted on non-complaint reviews.

ROI: The Cost of Compliance vs. The Price of Prevention

In a regulatory environment where complaints are free to lodge but expensive to defend, Checkedit.ai provides immediate protection and measurable returns. Here is how the investment pays off across five key areas.

1

Mitigating the 45% Surge in Risk

Ad Standards data reveals a 45% year-on-year increase in consumer complaints. Even a "dismissed" complaint consumes internal resources and risks negative PR cycles.

Checkedit.ai advantage: Checkedit.ai acts as your first line of defence, identifying the key compliance triggers that cause 59% of issues before your campaign goes live.

2

The Pre-Vetting ROI (ABAC Proven)

History proves that pre-vetting works. Recent ABAC reports showed that when pre-vetting usage dropped, complaints nearly doubled (from 126 to 207 in 2023).

Checkedit.ai advantage: Checkedit.ai provides automated pre-vetting that scales with your content volume, ensuring consistent compliance checks before campaigns reach legal review or public release.

3

Drastic Reduction in Legal Spend

The math is simple.

The Cost of Defence: A single regulatory inquiry can require 5–10 hours of external legal counsel circa $300 to 600/hr) or distraction of high-wage internal teams ($140Kp.a - $185k+ p.a.).

The Cost of Prevention: A Checkedit.ai subscription costs a fraction of a single hour of legal consultation – less than a coffee a day for our Silver tier which includes 2x free team members.

The Result: If Checkedit.ai prevents just one minor complaint per year, the software has paid for itself five times over.

4

Accelerating Speed to Market

Compliance bottlenecks kill creative momentum. Instead of waiting days for legal approval on routine social posts and web content, your team gets instant, 24/7 feedback.

Checkedit.ai advantage: This frees your expensive human legal resources to focus on high-level strategic value while Checkedit.ai pre-checks the daily volume of digital assets so regulatory teams can speed up their final approval.