Govt's new rules for surrogate ads to provide clarity on definitions; includes guard-rails for 'brand extensions'
While the principle of the draft guidelines would remain similar to ASCI, CCPA, and CBFC, the main objective would be to identify guard rails around the brand extension advertisements by alcohol manufacturers. The draft rules will be released in the next two to three weeks.
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The Department of Consumer Affairs (DoCA) has finalised the detailed and elaborative surrogate advertisements draft rules and will soon release them in their entirety, in the next two to three weeks, a source close to the development told Storyboard18.
The draft will be open for feedback and recommendations and has been drafted after having received detailed recommendations from the consumer organisations and various advertising bodies.
Storyboard18 earlier reported how the new guidelines seek tighter implementation, heavy penalties, the inclusion of digital and social media, and no ambiguity in definition of surrogate advertising.
Special consideration and thoughts have been given to the clear definition of surrogate ads and what constitute the 'brand extension'- the grey area due to which most of the alco-bev brands often are never penalised.
According to the latest draft, alcohol manufacturers that advertise their alcohol brand implicitly via product extensions like music CDs, water, or cards will have to prove that these items have a market of their own.
It is to be noted that in 2023, the Advertising Standards Council of India (ASCI) emphasised that advertising spends for legitimate brand extension products must align with the extension’s sales turnover.
"While the principle remains the same in the new draft, it will aim at clearly identifying guard rails around the brand extension advertisements. My recommendation is that since there are multiple guidelines already, the new draft should help harmonise the approach," says Gowree Gokhale, TMT lawyer, FICCI Data Protection Committee co-chair.
Gokhale is on the committee that is working towards drafting the guidelines on surrogate advertising on behalf of Central Consumer Protection Authority (CCPA).
"The draft should be out soon and is already under discussion at the committee level," she adds.
Currently, ASCI guidelines and the Central Board of Film Certification (CBFC) guidelines make a very clear distinction between surrogate advertising which is banned by law and brand extension advertising which is permitted by law. These rules are harmonious and have been developed through mutual consultation over time, points out Manisha Kapoor, CEO and Secretary General at the ASCI.
"We have requested the Ministry that the new rules consider these guidelines so that advertisers are clear about what is expected of them to comply with different laws on advertising," she says.
It is to be noted that at present, the CCPA also has guidelines in place to curb surrogate advertising. In its guidelines for 'Prevention of Misleading Advertisements' issued in December 2022, CCPA stated that no advertisements can be made suggesting directly or indirectly that it is for goods, products, or services whose advertising is otherwise prohibited/ restricted by law.
Read more: Crackdown on surrogate ads: Government to soon issue elaborated guidelines for advertisers
The guidelines, however, provide an exception, whereby, a brand used for ‘prohibited’ goods/ products, services could be used for other goods so long as it does not otherwise violate the guidelines. This exemption is vague, according to the industry safeguards and it is unclear whether the prohibition on surrogate advertising is absolute or not. Result of which, CCPA continues to identify and observe multiple instances where liquor brands are violating these regulations.
Also to note that the rules for direct advertising of alcohol are controlled by each state, and they are the ones who have to act in case of any breach. ASCI constantly brings these violations to the attention of the respective authorities, especially on the digital media where large number of informercials ads are commonly found.
Kapoor goes on to highlight how last year, ASCI reported 82 commercials of direct alcohol ads and 65 commercials of vaping and e-cigarettes to various authorities for further action.
Industry stakeholders in the past have pointed out that the current framework of guidelines for surrogates advertisements are less stringent for digital and social media platforms, where monitoring and regulation are challenging, allowing brands to reach consumers through influencer marketing and online promotions. Henceforth, they requested the DoCA to ensure that the upcoming guidelines cover all media platforms, including digital and social media.
"While the guidelines are the same across media, the challenge of digital media in terms of sheer number of ads definitely makes it more challenging to monitor," Kapoor remarks.
