What's the point of an ad regulator that can randomly refuse to review ads?

When a sponsored Typo post advertising Christmas ornaments in the shape of a penis and a sex toy showed up in Collective Shout supporter Susan’s Facebook feed, she made a complaint to Ad Standards.

Typo's penis-shaped Christmas ornaments 

But Ad Standards did not consider Susan’s complaint against the unsolicited penis ornament ad. She received an email notifying her that the Chair of the Ad Standards Community Panel had refused to forward the complaint to the panel for review. 

[UPDATE] Spotlight new addition to list for Playboy bed linen

You're about to be bombarded. Bombarded with junk mail, TV, radio and outdoor advertising all competing for your Christmas dollar. Before you purchase gifts for your friends and loved ones, lets remember those brands that have excelled in sexploitation this year, the brands and companies that do not deserve your hard earned money. Cross 'em off your Xmas list!

[UPDATED] But some items still appear on its website. Take Action.