Active Stocks
Thu Apr 18 2024 15:59:07
  1. Tata Steel share price
  2. 160.00 -0.03%
  1. Power Grid Corporation Of India share price
  2. 280.20 2.13%
  1. NTPC share price
  2. 351.40 -2.19%
  1. Infosys share price
  2. 1,420.55 0.41%
  1. Wipro share price
  2. 444.30 -0.96%
Business News/ Opinion / Online-views/  If advertisers don’t mind their Ps and Qs, the govt will
BackBack

If advertisers don’t mind their Ps and Qs, the govt will

The Advertising Standards Council of India is not as toothless as it is made out to be

Photo: iStockphotoPremium
Photo: iStockphoto

The focus this month is back on the Advertising Standards Council of India (ASCI), the advertising industry’s self-regulatory body. For a start, on 2 February, ASCI said that it had the remit for advertisements on the Internet and digital media too. The 30-year-old body, known for registering complaints against television commercials, in a statement said that its code of self-regulation “is quite comprehensive and covers all media including the Internet or digital media".

It added that it takes up complaints against ads appearing on websites, e-commerce portals, social media platforms as well as movie promotional videos/YouTube trailers. ASCI always believed that ads across all media and all sectors fell under its purview, but the recent release just made it explicit.

To be sure, its Consumer Complaints Council deals with complaints, received from consumers and industry, against ads which are false and misleading. It looks at ads with indecent or illegal content or those that promote unsafe products and practices, and are, therefore, in contravention of the ASCI code for self-regulation in advertising.

When it upholds some of these complaints, it can even be dragged to court. In fact, last week, an ongoing case in the Delhi high court between ASCI and Havells Pvt. Ltd revived the debate on the extent of its punitive powers over erring advertisers.

In October 2015, the Delhi high court stayed an order passed by ASCI against the electrical equipment maker, asking the company to modify or withdraw its ad that claimed “wires that do not catch fire", on the grounds that it was misleading. Earlier this month, the court heard arguments from Havells questioning ASCI’s powers to issue such orders and the manner in which it does so.

Critics argue that ASCI has no fangs. However, the body is not as toothless as it is made out to be. Yes, it is a voluntary organization, registered as a non-profit company under the Companies Act, but as a self-regulatory body of the advertising industry it has become stronger over the years.

It derives its power from the government at least as far as television advertising is concerned. It is recognized under the Cable Television Networks Rules, 1994, which state that “No advertisement which violates the code for self-regulation in advertising, as adopted by the Advertising Standards Council of India (ASCI), Mumbai, for public exhibition in India, from time to time, shall be carried in the cable service".

In essence, if an advertiser does not follow ASCI’s recommendation to modify or withdraw its ad within a stipulated time, the body can approach the ministry of information and broadcasting which, in turn, asks the channels not to carry the objectionable ads. It claims almost 100% compliance from its members and about 90% compliance from non-member advertisers. Information on all misleading ads is also sent to the department of consumer affairs and the relevant sector regulators.

ASCI works closely with the department of consumer affairs, handling all complaints pertaining to misleading ads coming through its Web portal—gama.gov.in (GAMA is short for grievances against misleading advertisements). The six priority sectors that are covered under GAMA are: agriculture and food, health, education, housing, financial services, and e-commerce. ASCI has also been approached by the Food Safety and Standards Authority of India for a possible memorandum of understanding for handling complaints against misleading ads for the food and beverages sector. The state food and drug administration authorities, too, have been sending complaints to ASCI against ads violating the Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954.

In short, it is growing in influence and collaborating with various bodies to strengthen self-regulation in advertising.

That is not all. Over the years, its membership has also swelled. More advertisers, advertising and media agencies as well as newspaper and television companies have become members. This helps the organization in applying collective pressure on erring advertisers.

The once slow-moving organization, is now nimble. Consumers can easily lodge complaints via a toll-free phone line, a mobile app or online through its website. Complaint redressal is speedier as the body meets every week instead of once a month like it used to earlier. In 2014-2015, it received more than 4,300 complaints and deliberated on 1,877 of them. Of these, it upheld complaints against 1,389 ads.

If advertisers do not want the government to interfere in what they show or say in their ads, they would be well served to adhere to the ASCI code. The idea at ASCI is not to penalize people but build a consciousness for responsible advertising. Its intent is to protect consumers from being cheated by advertising which makes misleading, false or unsubstantiated claims, is obscene or unfairly denigrates or runs down competitive products and services.

If industry doesn’t self-regulate advertising content, then chances are that the government will.

Shuchi Bansal is Mint’s media, marketing and advertising editor. Ordinary Post will look at pressing issues related to all three. Or just fun stuff.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 18 Feb 2016, 01:20 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App