
A three-pronged taskforce in the works to rein in digital ads running amok

Summary
The ministries of information and broadcasting, electronics and information technology, and consumer affairs are joining hands to create a body to protect consumers from the dangers of misleading and fraudulent social media ads other digital promotionsNEW DELHI : Three high-profile ministries that oversee different aspects of social media advertising are joining hands to create a taskforce that can comprehensively crackdown on misleading ads and fraudulent schemes promoted on digital platforms.
An inter-ministerial taskforce to monitor and regulate social media ads is being established by the ministries of information and broadcasting, electronics and information technology, and consumer affairs, according to two people aware of the development.
The taskforce will create a comprehensive regulatory framework to monitor and regulate social media ads, oversee compliance, and take action against violators, they said.
Currently, the ministry of information and broadcasting (I&B) deals with advertisement content, while the ministry of consumer affairs oversees misleading content and surrogate advertisements, and the ministry of information technology (Meity) governs social media intermediaries or platforms.
“By themselves, each of the three ministries is unable to take up all the social media advertising-related issues," said one of the persons mentioned above.
“For instance, if the I&B ministry issued an advisory against offshore betting and gambling companies, it is Meity that would block them on OTT platforms and not I&B directly. However, even Meity can only do so upon receiving directives from the other ministry," this person said.
“The ministry of consumer affairs also issues advisories, but there are no regulations on what is to be done with misleading content, so there is no final outcome on issues despite there being violations."
The taskforce is likely to be established by June, said the two people familiar with the government’s plan, both of them declining to be identified.
Spokespersons for the ministries of I&B, consumer affairs, and Meity did not reply to queries on the proposed taskforce.
First order of business
At present, there is no clear way to address complex issues such as ads that fall into the category of dark patterns—surrogate ads that promote a different product, social media short videos or reels that are actually ads in disguise, ads that bait a consumer only to switch what’s actually being promoted.
The first order of business for the taskforce will be for the three ministries to get together to decide what makes for misleading or fraudulent advertising, as well as identify companies peddling fake or misleading ads. The taskforce could also frame laws to govern social media ads.
Also read | Liquor ads passed off as music CDs? Not for much longer
“There is a layered nature of social media and digital mediums, so the idea is for all three ministries to have a comprehensive response to the issue," said the official quoted earlier. “Digital ads are spread across the spectrum and include both individual influencers as well as those done by social media agencies."
In terms of laws, currently, social media ads are governed under the Information Technology Act, 2000, and the Consumer Protection Act of 2019, along with the Advertising Standards Council of India, the industry watchdog.
The Patanjali fallout
Last month, the Supreme Court, hearing a complaint against false and exaggerated medical claims by yoga guru Ramdev’s Patanjali Ayurved, came down hard on the company as well as on other consumer goods companies for peddling misleading ads.
The court made it compulsory for all companies to submit a self-declaration for all advertisements on all media. Advertisers must upload these on the Broadcast Sewa Portal operated by the ministry of information and broadcasting. For advertisements in print or on the internet, the ministry has to create a dedicated portal.
Companies would have to provide evidence of uploading the self-declaration to the relevant broadcaster, printer, publisher, TV channel, or electronic media platform before their ads can be made public. The directives are legally binding under Article 141 of the Constitution and failure to comply would lead to legal consequences.
Also read | Patanjali’s credibility crisis: A knock-on effect on the booming Ayush market?
The Advertising Standards Council of India, while it's still awaiting the I&B ministry’s operational order on this issue, believes implementing the court’s order could be challenging given the scale and scope of ads, particularly on digital media.
“The requirement laid down by the Supreme Court of self-declarations for all advertisements on all media would indeed be a challenging one to implement given the scale and scope of advertisements, particularly on digital," said Manisha Kapoor, chief executive and secretary general, ASCI.
“Advertisers will need to incorporate this as part of their media release timelines. For local and hyper-local channels and press, as well as smaller platforms, the entire information mechanism will need to be incorporated as part of the technology offering," Kapoor added.
“It will also be important to determine what will happen in the case of violations if they should occur despite self-declarations. We will await details from (the I&B ministry) on operationalizing this order."
Also read | Celebrities to front consumer rights campaign on WhatsApp
Manish K. Shubhay, Supreme Court advocate and partner, The Precept Law Offices, said checking misleading advertisements on social media was not only the government’s statutory obligation but also essential to protect consumers from financial loss and health risks associated with false claims.
“Moreover, it aligns with legal and ethical standards, ensuring integrity in commerce," Shubhay said.
“The proposed taskforce and the resultant regulations for misleading ads may empower the consumers with reliable information, safeguarding their interests and promoting a transparent and fair marketplace."