Industry
Surrogate advertising draft guidelines ready for public consultation, to strengthen compliance with existing advertising
Summary
- The guidelines will aim to strengthen compliance, particularly in areas such as digital marketing and celebrity endorsements, the people said on the condition of anonymity.
Music CDs sporting liquor brand logos? Playing cards named after cigarette brands? Surrogate advertising that survived for long in the face of rules is expected to face a setback, with the Centre finalizing draft rules to plug existing loopholes.
The Central Consumer Protection Authority (CCPA) plans to release much-awaited draft guidelines on surrogate advertising as early as this month, two people aware of the matter told Mint. The guidelines will aim to strengthen compliance, particularly in areas such as digital marketing and celebrity endorsements, the people said on the condition of anonymity.
“The draft is ready and has been designed to ensure it is appreciated by all key stakeholders. These norms have been finalized after thorough consultations with all concerned parties, including representatives from the beverages industry, consumer groups, and law enforcement agencies," one of the two people mentioned above said.
Under the proposed rule, liquor manufacturers leveraging glassware, music CDs, or any other product to promote their products will be required to regularly submit market reports on their retail availability and sales, the person added. This is to ensure that the product is real, and does not just appear in advertisements as a vehicle for the brand.
Mint first reported on the plan to crack down on surrogate advertisements on 14 March.
Also read | Music concerts, sports events: How top liquor brands landed in a mess over surrogate ads
If the unrestricted product or service advertised is registered with the right authorities, its brand promotion won't be considered surrogate advertising. Furthermore, unrestricted products with a registered trademark will not be impacted.
Unrestricted products refer to goods or services that are not prohibited, or are subject to strict regulations on advertising and promotion. These include everyday consumer goods like food, beverages (non-alcoholic), electronics, clothing, and other items that can be freely advertised without violating any laws.
Also, unrestricted products that don’t mention banned products, directly or indirectly, won’t be covered by the surrogate advertising rules, according to the draft, the people cited above said.
Queries emailed to the consumer affairs ministry remained unanswered till press time.
“In the new rules, the CCPA has tried to strike a balance between industry interests and consumer protection by preventing the overt branding of alcoholic products," the second person added.
“We are planning to release it by this month end or early next year," this person said. "The proposed rules may be revised in the final version if we receive better suggestions for replacing certain provisions," the person added.
Common surrogate products include music albums, CDs, glassware, soda and mineral water that bear the brand names of restricted products. Liquor makers also sponsor music concerts, cultural festivals and award shows to target youth.
"We appreciate the government's extensive consultations with stakeholders in developing guidelines for brand extension advertising in the alcoholic beverages sector," said Vinod Giri, director general of the Brewers Association of India (BAI).
"The aim was to prevent misuse and misleading communication without stifling genuine brand extensions. The joint committee has done an excellent job in reaching a consensus on what is permissible. I hope the draft notification maintains this approach and avoids unnecessary interventions that could overly prescribe or quantify criteria, such as volumes, revenues, or availability, which would undermine the entire effort," Giri said.
Formed in March, the 11-member joint committee was chaired by consumer affairs joint secretary Anupam Mishra, with representatives from the Ministry of Information and Broadcasting, the Advertising Standards Council of India, the International Spirits and Wines Association of India, the All India Distillers Association, the Confederation of Indian Alcoholic Beverage Companies, the E-Gaming Federation, the All India Gaming Federation, and consumer activists Ashim Sanyal and Pushpa Girimaji.
Also read | Cards, glasses and music CDs: Liquor brands may be staring at the end of surrogate ads
The CCPA has also brought separate guidelines on misleading advertisements by IAS coaching institutes. Rules to prevent greenwashing and pesky calls are also on the CCPA's agenda.
Mint reported on 2 October about notices being issued the CCPA to large liquor manufacturers such as Bacardi, known for its popular white rum, French wine maker Pernod Ricard, United Breweries, homegrown Radico Khaitan, and William Grant & Sons, which sells single malt Scotch whisky Glenfiddich.
The CCPA wrote to the liquor makers about their sponsorship of cultural, music and sports events, as well as youth festivals and events in colleges. The consumer rights watchdog is also scanning their use of social media to engage consumers through lifestyle content, events and promotions.
