The rising instances of misleading advertisements are undoubtedly an issue that needs to be addressed to ensure accountability from brands and to combat associated end consumers, especially when it comes to the health, education, and finance industries.
To deal with such issue, new advertisement regulations have been introduced by the Ministry of Information & Broadcasting In line with the Case between the Indian Medical Association V/s Union of India on misleading advertisements of Patanjaji and as an outcome of that the Supreme Court of India has ordered no advertisement will be permitted to run on television, print media or the internet without a valid self-declaration certificate starting from June 18, 2024.
Understanding the Directive
The self-declaration certificate is a document affirming that an advertisement does not make misleading claims and complies with all relevant regulatory guidelines, including those stipulated in Rule 7 of the Cable Television Networks Rules, 1994. The directive has raised several questions within the industry, particularly regarding who is responsible for filing the self-declaration. The Ministry of Information and Broadcasting (MIB) is set to submit the stakeholders’ response to the Supreme Court on July 9, 2024.
Industry Reactions and Concerns
1. Confusion on Responsibility: There is confusion about who should file the self-declaration. Some argue that the client should take the onus, while others believe it should be the agency. This confusion could lead to additional fees for agencies to ensure compliance
2. Practical Challenges: The industry is concerned about the practical implementation of the mandate, particularly for digital advertising. The process is seen as time-consuming and may delay campaigns.
3. Industry Bodies: The Indian Society of Advertisers (ISA) and the Digital News Publishers Association have voiced concerns about the administrative burden and potential disruption in ad campaigns
4. Alternative Approaches: Some suggest that a one-time self-declaration for each product claim or a mechanism similar to the existing rules for digital advertisements could be more practical
Industry Response and Expert Opinions
The directive has been met with mixed reactions from industry stakeholders. While some see it as a necessary step towards responsible advertising, others have voiced concerns about its practical implementation. The industry is particularly concerned about who should be responsible for filing the self-declaration.
Nilaksh Badiyani, Co-Founder & Head of Performance Marketing at Lantern Digital, “We had to explain the self-declaration procedure to all clients and ensure compliance. This update delays time-sensitive campaigns and poses privacy concerns. We need qualified POCs for pre-uploading ads and maintaining records. There’s still no clarity on some ad types, requiring us to take screenshots and create PDFs. We must also upload search ad masters until further clarity is provided.”
Chaaya Baradhwaaj, the founder and managing director of BC Web Wise, supports the crackdown on misleading advertisements but acknowledges that the implementation has some issues that need to be resolved. (Source: Link)
Mansi Gupta, the chief business officer of OpraahFx, an influencer marketing agency, highlighted concerns about privacy, noting that the current upload process is insecure and allows unauthorized access to uploaded materials. This lack of security means that anyone could search for a brand name and view all current and upcoming assets, which compromises confidentiality. This is particularly problematic for new product launches where maintaining secrecy is crucial for competitive advantage. (Source: Link)
Siddharth Devnani, Co-founder & Director, SoCheers – “The responsibility of the brand is to be true to themselves in their communication and packing – and not to mislead the consumer and the role of an agency is to craft great marketing campaigns for the brand.” (Source: Link)
Industry bodies like the Indian Society of Advertisers (ISA) and the Digital News Publishers Association have voiced concerns about the practicality and impact of the self-declaration mandate, particularly in the context of digital advertising. They have highlighted issues such as the time-consuming nature of the process, the potential for disruption in ad campaigns, and the impact on client confidentiality. (Source – Link)
Overall, the industry has expressed mixed reactions to the self-declaration mandate, with concerns about the practical implementation and potential challenges, especially for digital advertising. While some see it as a step towards more responsible advertising, others are concerned about the administrative burden and impact on the industry’s operations.
The self-declaration mandate aims to ensure transparency and responsible advertising practices. While it has been welcomed as a step towards safeguarding consumer interests, the industry is navigating practical challenges and confusion about who should file the self-declaration. The Supreme Court will review the stakeholders’ responses on July 9, 2024, to address these concerns and provide further clarity on the implementation of the mandate.