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Self-declaration for ads: Confusion reigns with little clarity over rules

Self-declaration for ads: Confusion reigns with little clarity over rules

Advertisers and industry bodies express apprehension on how the new rule can work in a medium like digital, where turnaround time is critical

Krishna Gopalan
Krishna Gopalan
  • Updated Jun 20, 2024 2:15 PM IST
Self-declaration for ads: Confusion reigns with little clarity over rulesFILE PHOTO: Traffic moves on a road past advertisements of Indian online marketplace Amazon, in Mumbai, India, October 15, 2015. Picture taken October 15, 2015. REUTERS/Shailesh Andrade

Concerns around furnishing self-declarations for advertisements are not about to die down anytime soon. The Supreme Court last month directed advertisers to certify that their ads do not contain any misleading content or claims.

Understandably, there is a lot of apprehension on what this means. The marketing head at a FMCG major thinks self-declaration comes right after several controversies especially around advertising relating to some of the companies in the foods and beverages space. “A lot of brands had to deal with the regulators and it is possible that self-declaration is a result of that.”

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That said, how it will play out is unclear at this point. Sandeep Goyal, MD of advertising agency, Rediffusion, believes a lot of unnecessary bureaucracy is being created. “The government has really not made public any policing or penalisation of false or incorrect declarations. All this uploading is fine but the commensurate backend required to judge the submissions for correctness should first have been put in place. Also, who judges the goodness of a claim?” he asks.

Manisha Kapoor, Secretary General, Advertising Standards Council of India (ASCI), points out that misleading claims are a nuanced exercise in the context of advertising. “What needs to be taken into account is not just technical accuracy but also an understanding of how an average consumer might perceive the advertisement given the cues and context in which it is set. Over time, ASCI’s independent jury, through debate and discussion arrives at its recommendation on every ad,” she says.

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According to her, advertisers, in general, would believe that their ads are not misleading. “They might put down certain statements and depictions down to creative freedom. While creative freedom indeed is their right and what makes advertising interesting, there is a fine line that it can cross to becomes misleading,” she says.

The big challenge is how self-declaration can be implemented in the case of digital advertising. Given the volume of work that is created each day, this medium is unique. Subhash Kamath, an independent consultant, former CEO BBH and also ex-Chairman, ASCI, explains that the basic premise of the Supreme Court is to curb misleading claims in the business. “That means self-declaration gives them teeth to punish violators. But it can be a logistical nightmare for a creative business, where in digital, for example, ads are created, posted and removed within hours.” Plus, just in terms of size, digital media, according to a recent FICCI-EY report on the media and entertainment industry, had revenues of Rs 57,600 crore through advertising and another Rs 7,800 crore from subscription, taking the size to Rs 65,400 crore. Every major advertiser in India across sectors today has a play in digital.

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“Self-declaration especially for digital advertising is a challenge everyone is grappling with. While some of it may be teething trouble, the sheer volume of work that is needed to ensure compliance on digital seems overwhelming for most as of now,” says Kapoor and adds that cost and time implications plus the ability to be agile can all get impacted. Take the case of a news development and a brand wanting to capitalise on that with a witty campaign. With self-declaration, it can get very complicated since time is of essence.

ABOUT THE AUTHOR

Krishna Gopalan
Krishna Gopalan

Based in Mumbai, Krishna Gopalan has reported across sectors that include telecommunications, cement, media and entertainment, private equity, consumer and metals. His current job profile entails writing on large conglomerates for which he interviews prominent CEOs. Krishna has a deep interest in business strategy and is intrigued by why organisations do what they do. His writing experience of over 25 years has had stints in The Financial Express, The Economic Times, Fortune India and Outlook Business. At Business Today, he contributes to the magazine, online and also appears on television.

Krishna reads widely on business, politics and Indian history. A Chevening scholar (batch of 2007), he spent three months in the UK that included an internship with the Financial Times in London. He is a published author with his first book, The Making of Don, based on the 1978 Hindi film starring Amitabh Bachchan, hitting the stands in 2013. Academically, he is a postgraduate in Economics from the University of Madras and holds an MBA from NMIMS, Mumbai.

Published on: Jun 20, 2024 2:15 PM IST