Confusion, website glitches mar first day of new ad rules
- The advertising industry is in turmoil over new self-declaration rules, with concerns about bureaucracy and lack of monitoring mechanisms.
- Ad agencies say it will be a struggle to upload hundreds of pages of documents daily under the new rules
Advertisers had warned that a self-declaration mechanism introduced after the Patanjali Ayurved case to prevent misleading ads would smother them in paperwork and other complications. Some of their fears came true on Tuesday, 18 June, the first day of the new process.
As advertisers rushed to upload their documents—on the Broadcast Seva website for TV and radio advertisements, and on the Press Council of India website for print and digital advertisements—they faced several technical glitches that left them unable to complete the process.
Following a Supreme Court decision last month in the Patanjali Ayurved case, the ministry of information and broadcasting mandated that beginning 18 June all advertisers had to declare compliance with cable TV rules and advertising codes for all their ads.
The apex court also directed Union ministries and authorities to take action against fast-moving consumer goods companies indulging in false campaigns.
Advertisers have complained that uploading hundreds of pages of documents daily would only result in bureaucracy, especially in the absence of any mechanism to evaluate or monitor the declarations. Industry bodies have been trying to engage with the government to find an alternative.
“We are complying, obviously, but it increases the paperwork for us. The industry had proposed some alternatives but those were not considered. The ministry’s own website crashed during the demonstration to the industry,” said a senior executive with an advertising agency, declining to be identified. “It’s not easy for us because so many more people will be needed to keep filing declarations in our agency.”
Mint independently found the Broadcast Seva website frequently crashing on the evening of 18 June.
“Problems will start if the portal cannot take the huge volume that will build up in the days ahead, which is most likely going to happen as it usually happens with most government sites,” said Sandeep Goyal, chairman and managing director of advertising agency Rediffusion.
“We have just created more bureaucracy. I don’t see any mechanism for evaluation, monitoring or policing,” Goyal added. “Of course, it is in compliance with court orders, but the executive arm of the government has to make sure that the entire exercise is worth the while in terms of consumer protection.”
The Patanjali effect
This I&B ministry’s self-declaration mandate is a fallout of the Supreme Court ruling that found consumer goods company Patanjali Ayurved Ltd, owned by yoga guru Baba Ramdev, guilty of making misleading claims in its advertisements.
Following this, the ministry issued a notification and an advisory requiring ad agencies to submit self-declaration forms for all advertisements before they are aired or published on television, in print, or online.
Mint reported last month that the Advertising Standards Council of India (ASCI) had found Mamaearth parent Honasa Consumer Pvt. Ltd, HealthKart, online tutor Unacademy, and infant-products retailer FirstCry among major ad voilators in 2023-24.
“The intention (of the I&B ministry’s decision) is right, but the process has not been thought through and requires streamlining,” said Shashi Sinha, chief executive of IPG Mediabrands India, the domestic media and marketing arm of US advertising firm Interpublic Group. “I am sure the courts will take into account the disruption caused to the industry.”
Several interim applications have been filed before the Supreme Court seeking clarifications on various issues relating to the implementation of the new requirement, said Nishad Nadkarni, partner at law firm Khaitan & Co.
“While the intent and object behind the regulation is praiseworthy, the practicality and effectiveness remain to be seen since the order imposes an obligation upon either the advertiser or the agency to upload the declaration,” he said.
Kaushik Moitra, partner at law firm Bharucha & Partners, said a regulatory mechanism for advertising already exists in statutes such as the Cable Television Networks (Regulation) Act, 1995 and other sectoral laws.
“Self-regulation is the hallmark of India’s media. Coupled with (the I&B ministry's) soft-touch approach, stakeholders have demonstrated responsibility and responsiveness,” he said. “The latest move to submit a self-declaration must be tested on account of ease-of-doing business and increased compliance requirements.”
Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
Business NewsCompaniesConfusion, website glitches mar first day of new ad rules
First Published:19 Jun 2024, 10:45 AM IST
- Top Gainers
- Top Losers
- 52 Week High