To discuss the recent order from the Supreme Court, the Ministry of Information and Broadcasting (MIB) convened a meeting with industry stakeholders in New Delhi. Advertisers and ad agencies must submit a self-declaration certificate following this order before running advertisements on TV, print, digital, and radio platforms. The marketing and advertising community, particularly the digital advertising ecosystem, is a little worried and perplexed about the MIB’s directive to submit self-declaration certificates for all new advertisements starting on June 18.
Everything began when the case of Patanjali’s deceptive advertisements surfaced. The business had been running ads criticizing the allopathic medical system. In the course of the meeting, representatives from the ministry underscored the obligatory character of this mandate and confirmed that there would be no modifications or postponements to the data implementation deadline of June 18, 2024. Stakeholders were given assurances of their cooperation, but they rejected criticism and postponement suggestions.
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Representatives from Google, the Indian Broadcasting and Digital Foundation, the Advertising Standards Council of India, the Digital News Publishers of India (DNPA), and senior media executives attended the meeting. Leaders in the industry expressed their displeasure, saying that legislators ought to have consulted with them before implementing the mandate. They feel that their suggestions could have assisted in resolving some of the plan’s practical issues. The ministry will provide the high court with an affidavit detailing the steps it has taken thus far on SDC on July 9. Additionally, it will have the chance to showcase stakeholder responses to the mandated SDC policy and procedure, as well as their opinions.
In addition to being in opposition to the Indian government’s “ease of doing business” initiative, the Supreme Court’s order requiring the submission of a “self-declaration certificate” also increases the administrative burden, which stifles innovation. In its submission to the MIB, the Indian Society of Advertisers (ISA) stated that such a postponement in advertising may have wider economic ramifications. The national body for advertisers shared tenable recommendations to improve the current systems to stop deceptive advertisements, pointing out among other issues, the SDC mechanism’s implementation that included ambiguities and practical challenges. Additionally, it pointed out that the wording in some sections of the Advertisement Code is excessively general, and open-ended, uses ambiguous terminology, and places unjustifiable limitations on the right to free speech and expression.
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Digital experts point out that creating a paper trail or self-declaration for every one of the enormous amounts of assets that go into performance marketing on digital platforms would be an exhausting task. One cannot ignore the significant impact influencer-led digital advertisements have in this digital ecosystem. Fast growth in ad volume has made advertising regulation in India more and more complex. This increase is directly related to a notable rise in advertising spending, as companies make large investments to draw in customers in a crowded market.
Along with sharing the suggested remedy, ISA also requested that MIB improve the enforcement of current laws and regulations and reinforce the existence of the self-regulatory body, ASCI. It also offered alternatives to the SDC mechanism, such as requiring each advertiser to submit a one-time undertaking prior to engaging in any form of advertising.
Influencers must now adhere to several rules from organizations such as ASCI, which require them to use hashtags mentioning “ad” or a label labeled “paid partnership” with sponsored content. In addition, the Ministry’s mandate has made the process even more onerous for the sector.
Observers believe that MIB’s implementation of the order exhibits a serious oversight. As the Supreme Court mandates, all advertisers must provide a self-declaration certificate, signed by an authorized representative of the advertiser or company, before broadcasting or publishing any advertisements on TV channels, print media, or digital media. Before being broadcast on TV channels, this certificate needs to be submitted via the Ministry of Information and Broadcasting’s (MIB) Broadcast Seva Portal.
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