Tag: Central Consumer Protection Authority

  • If self-regulation fails…

     

     

    By Sanjeev Kotnala

     

    Sanjeev KotnalaGood news. ASCI acted fast. It is debatable who acted first to ban/ withdraw the controversial Layer’r Shot ad. Was it the government or the Advertising Standards Council of India (ASCI)? I am glad someone did. However, the story has died fast. Everyone is okay after the ad is withdrawn and a vague apology tendered. One does not know the mandatory approvals, who approved, and why there is no further action?

     

    Meanwhile, the government got into the act. The Central Consumer Protection Authority (CCPA) released new guidelines against misleading advertisements. It says surrogate advertising is now banned- was it allowed earlier? The celebrity must disclose association and do due diligence before endorsing – was that not the case?

     

    Meanwhile, ASCI released new guidelines on Harmful Gender-Stereotype in advertising. It aims to encourage advertisers to create progressive gender depictions. It is okay if the ground realities are different and do not reflect this expected holier-than-thou depiction in advertisements.

     

    This reminds me of Sunny Deol’s famous dialogue; Guideline pe Guideline pe guideline- nahi milte hai toh misleading advertisements se chutti.

     

    Minister Calls ASCI act

    I read the overdramatic comment of the Union Minister for Women and Child Development, Mrs Smriti Irani and I smiled. She said, “If women were valued enough, we wouldn’t need guidelines”. I believe she would know the reality.

    However, she made a relevant observation on ASCI members and their engagement. Of the 800 ASCI members, just three members (officebearers) were at the guideline event. That’s how integral ASCI is to the industry. That is how concerned, involved, and serious the industry is towards self-regulation?

     

    Intent does not Count

    The guidelines on Harmful Gender-Stereotype in advertising call for not including gender stereotypes likely to cause harm or serious or widespread offence. For ASCI, it is a strong step towards a more responsible and progressive narrative. Well, I am not so sure. We know how guidelines are exploited, played with, and not adhered to by advertisers.

    The truth is that most creative and client teams do not know the guidelines and don’t understand them. Brands simply don’t give a damn to ASCI, given that it only seeks a polite enquiry and request to withdraw the offending advertisement.

     

    Things have changed a bit 

    ASCI has streamlined the processes. There are quick processes to address the problem. But withdrawing the ad with no public apology shows ASCI has no bite. In most cases, the advertisement achieves its objective before ASCI request a withdrawal.  However, the ASCI service #GetItRight, get the creative pre-checked at the production stage, returns a 404 error!

     

    Different strokes

    Surprisingly, large brands and big advertisers regularly feature in the quarterly reports of offending work. ASCI guidelines have no say on advertorials, political and Government advertisements.

     

    Will ASCI guidelines restrict creativity?

    In today’s world of rapid information exchange, heightened point-of-views and hardened social voices help nudge the brands in the right direction. But storytellers must have creative licenses.

    Is ASCI not asking too much for brands to reinforce unrealistic and undesirable gender ideals or expectations. For example, expecting a woman to return from work may not be shown as solely responsible for doing household duties while others around her are at leisure. Remember Airtel.

     

    Should advertising worry about social reform?

    When the guidelines become constraining, they will be questioned.

    Should advertising stop reflecting the social and cultural realities?

    Will it not make them irrelevant, ineffective, and tough to relate to?

    Should advertising aim to nudge people towards the right desired way of life?

    Or should the ground realities change before advertising reflects it?

    Are we not giving advertising too much credit for possibly impacting human behaviour?

    Are guidelines not trying to dictate what should be controlled by the market forces?

     

    Net-net

    Advertising is becoming a tough maze with all the guidelines. There is too much of what not to do. Maybe creative teams see it as a decent challenge. But this forced wokeness is wrong.

    The brands should be free to tell the story how they want and ensure that no misinformation or false promise is being made. And that it does not hurt religious, regional, language or gender groups or objectify any gender.  And if there are guidelines there should be a robust way to implement them by Sham, Daam, Dand or Bhed. (Logic, cost, Penalty and differentiation/doubt).

     

    Let us understand, that ASCI cannot do much till the corporates, the marketing and the brand owners take the initiative. Self-regulation is all about knowing and doing things consciously as per the guidelines. Till the time ASCI does not have real teeth to penalise and persuade brands for breach of guidelines, they may just remain guidelines.

     

    Not against self-regulation

    I am not against self-regulation; it is crucial. As an industry we all owe to the society the right way of promotion. If the industry continues to fail at self-regulation. In that case, someone like government will have to regulate it, which will be a sad day for the industry.

    I am all for effective self-regulation, where there is one expectation from every stakeholder, and the regulating authority has the right to take action. Where every team member on the client and the agency side understands and appreciated the need for the guidelines, maybe then they will follow it better. Maybe I am asking for too much.

     

     

  • Mr B, please note: Govt may slap Rs 5mn fine on habitual offenders from amongst celeb endorsers. Plus ban for 3 years

    By Our Staff

     

    The Central Consumer Protection Authority (CCPA) under the Department of Consumer Affairs of the Government of India has notified ‘Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022’ with an objective to curb misleading advertisements and protect the consumers, who may be exploited or affected by such advertisements.

     

    The guidelines seek to ensure that consumers are not being fooled with unsubstantiated claims, exaggerated promises, misinformation and false claims. Such advertisements violates various rights of consumers such as right to be informed, right to choose and right to be safeguarded against potentially unsafe products and services.

     

    The CCPA has been established under section 10 of the Consumer Protection Act, 2019 for regulating matters relating to violation of the rights of the consumers, unfair trade practices and false or misleading advertisements which are prejudicial to the interests of public and consumers and to promote, protect and enforce the rights of consumers as a class.

     

    In exercise of the powers conferred by section 18 of the Consumer Protection Act, 2019, to CCPA, the Guidelines were notified

     

    Misleading advertisement has already been defined under section 2(28) of the Consumer Protection Act, 2019.

     

    The present guidelines define “bait advertisement”, “surrogate advertisement” and clearly provides what constitutes as “free claim advertisements”.

     

    Keeping in view the sensitiveness and vulnerability of children and severe impact advertisements make on the younger minds, several preemptive provisions have been laid down on advertisements targeting children. Guidelines forbid advertisements from exaggerating the features of product or service in such manner as to lead children to have unrealistic expectations of such product or service and claim any health or nutritional claims or benefits without being adequately and scientifically substantiated by a recognised body. The guidelines say that ads targeting children shall not feature any personalities from the field of sports, music or cinema for products which under any law requires a health warning for such advertisement or cannot be purchased by children.

     

    Disclaimers in advertisements play a pivotal role from consumer perspective since in a way it limits the responsibility of the company. Therefore, guidelines stipulates that disclaimers shall not attempt to hide material information with respect to any claim made in such advertisement, the omission or absence of which is likely to make the advertisement deceptive or conceal its commercial intent and shall not attempt to correct a misleading claim made in an advertisement. Further, it provides that, a disclaimer shall be in the same language as the claim made in the advertisement and the font used in a disclaimer shall be the same as that used in the claim.

     

    Similarly, guidelines have been laid for duties of manufacturer, service provider, advertiser and advertising agency, due diligence to be carried out before endorsing and others. Guidelines aims to protect consumer’s interest through bringing in more transparency and clarity in the way advertisements are being published, so that, consumers are able to make informed decisions based on facts rather than false narratives and exaggerations.

     

    Penalty for violating the guidelines are also clearly outlined. CCPA can impose penalty of upto Rs 1 million on manufacturers, advertisers and endorsers for any misleading advertisements. For subsequent contraventions, CCPA may impose a penalty of upto Rs 5 million. The Authority can prohibit the endorser of a misleading advertisement from making any endorsement for upto one year and for subsequent contravention, prohibition can extend upto three years.

     

    The guidelines can be viewed at

    https://consumeraffairs.nic.in/sites/default/files/file-uploads/latestnews/CCPA%20Notification.pdf

    PS: So, why did we put Mr B in the headline. Well, he’s a favourite of our friend Kamla. Yes, Kamla’s Pasand 😉

     

  • CCPA passes order against Sensodyne ads

    By Our Staff

     

    The Central Consumer Protection Authority (CCPA) has passed an order against advertisements of Sensodyne products which make the claims “Recommended by dentists worldwide” and “World’s No.1 sensitivity toothpaste”. In February this year, CCPA had passed order an directing discontinuation of advertisement of Sensodyne products which show endorsement by foreign dentists.

     

    Notes a communique from the Ministry of Consumer Affairs, Government of India:

    “It may be mentioned that CCPA had initiated suo-moto action against advertisement of Sensodyne products on various platforms including Television, Youtube, Facebook and Twitter showing dentists practicing outside India (practicing in the United Kingdom) endorsing the use of Sensodyne products namely Sensodyne Rapid Relief and Sensodyne Fresh Gel for protection against teeth sensitivity and making claims that Sensodyne is “Recommended by dentists worldwide”, “World’s No. 1 sensitivity toothpaste” and “clinically proven relief, works in 60 seconds”.

     

    “After examination of the response submitted by the company, CCPA observed that the two market surveys submitted by the company in support of its claims “Recommended by dentists worldwide” and “World’s No.1 sensitivity toothpaste” made in the advertisements were conducted only with dentists in India. No cogent study or material were submitted by the company to substantiate the claims made in the advertisements or indicate any worldwide prominence of Sensodyne products. Thus, the claims were observed to be bereft of any reason or justification.

     

    ?With respect to the claim of “clinically proven relief, works in 60 seconds”, CCPA had written to the Drugs Controller General of India, Central Drugs Standard Control Organization (CDSCO) to furnish its comments on the correctness of the claims made by the company. CDSCO has directed The Assistant Drug Controller, Licensing Authority, Silvassa to investigate the claims made by the company since the product in question is manufactured under cosmetic license granted by State Licensing Authority, Silvassa. The Assisting Drug Controller has written to CCPA stating that the claims made by the company are under investigation and further action will be initiated after the hearing process. In view of the communication received from CDSCO and Assistant Drug Controller, Licensing Authority, Silvassa as regards the claim of “clinically proven relief, works in 60 seconds”, the matter now rests with Assistant Drug Controller, State Licensing Authority, Silvassa.

     

    “Therefore, CCPA has ordered discontinuation of advertisements of Sensodyne products which make the claims “Recommended by dentists worldwide” and “World’s No.1 sensitivity toothpaste” within seven days and directed payment of penalty of ₹10,00,000. Also, advertisements which show endorsements by foreign dentists have been ordered to be discontinued as per the earlier order passed by CCPA.

     

    “In the wake of consumer sensitivity around Covid-19 pandemic, CCPA took stringent action against misleading advertisements whereby 13 companies withdrew their advertisements and 3 companies made corrective advertisements.

     

    “Further, to safeguard consumer interest against misleading advertisements and unfair trade practices, CCPA has also issued two advisories. The first advisory was issued on 20.01.2021 calling industry stakeholders to cease making misleading claims that take advantage of the Covid-19 pandemic situation and are not supported by any competent and reliable scientific evidence. The second Advisory was issued on 01.10.2021 highlighting compliance of the provisions of Consumer Protection (e-commerce) Rules, 2020 which require every marketplace e-commerce entity to prominently display all information provided to it by seller under Rule 6(5) including name, designation and contact information of the grievance officer of the seller.

     

    “CCPA has also issued two Safety Notices under Section 18(2)(j) of the Act alerting consumers against buying goods which do not hold without valid ISI Mark and violate the BIS standards directed for compulsory use by the Central Government. While the first Safety Notice was issued on 06.12.2021 in reference to Helmets, Pressure Cookers and Cooking gas cylinders, the second Safety Notice was issued on 16.12.2021 in reference to household goods including electric immersion water heaters, sewing machines, microwave ovens, domestic gas stoves with LPG etc.”

     

  • Can ASCI Play A Role In Review of Surrogate Advertising?

     

    By Indrani Sen

     

    In the week before the last, the Consumer Affairs Ministry had issued a draft of the Central Consumer Protection Authority (Prevention of Misleading Advertisements and Necessary Due Diligence for Endorsement of Advertisements) Guidelines, 2020 requesting people to submit their comments and suggestions on the guidelines by September 18, 2020. As per industry estimates based on TAM Adex data, the size of total surrogate advertising in India is around Rs 700-800 crore per annum with 70% share of TV in the pie. The new draft guidelines, if enforced with immediate effect, may affect the post lockdown financial recovery of TV channels.

    Along with guidelines for endorsements, definitions for valid advertising, new rules for advertisements targeting children etc., the new guidelines clearly prohibit surrogate advertising — the practice of promoting banned products like liquor and tobacco by promoting another product under the umbrella of ‘Brand Extension’ unless the promotion of the said product advertised under the same brand name can be substantiated with certain proofs of its legitimacy. The legitimacy would be judged based on (a) if the new product is produced, distributed and sold in ‘reasonable quantities’ having regard to the scale of the advertising campaign in question, the media used, and the markets targeted and (b) do not have any direct or indirect indication of a banned product. While the guide lines do not give definition of ‘reasonable quantities’, the same allow for some concessions like advertisements wouldn’t be disqualified just for using similar branding of a banned product.

    The revised guideline issued by the Ministry of Information & Broadcasting  last week, under rule number 7(2)(vih)(A) of Advertising Code in the Cable Television Network Rule 1994,  notifies that all such TV commercials  falling under the ‘Brand Extension’ of  banned products like cigarettes,  other tobacco products, wine, alcohol, liquor etc. will have to be first previewed by Central Board of Film Certification and certified as fit for consumption before any TV channel can broadcast the same. It is not very clear from the advisory if the legitimacy of the product will also be reviewed by the CBFC or if that would be done separately by the MIB before the advertiser invests in the production of the TV commercial. Traditionally, the Chairman and members of the CBFC are from the film and entertainment industry. The CEOs are usually selected from bureaucrats like Ravinder Bhakar, a 1999 batch officer of Indian Railway Stores Service (IRSS), who has taken over as the Chief Executive Officer (CEO) of Central Board of Films Certification (CBFC) from March 2020.

    Can ASCI play an active role in this entire new process of decision making on surrogate advertising?  They would be in a far better position to judge the legitimacy of the product than the MIB or CBFC.       ASCI’s role has been acclaimed by various Government bodies including The Department of Consumer Affairs (DoCA), Food Safety and Standards Authority of India (FSSAI), Ministry of AYUSH as well as the Ministry of Information and Broadcasting (MIB). In January 2017, the Supreme Court of India in its judgement affirmed and recognized the self-regulatory mechanism as an effective pre-emptive step to statutory provisions in the sphere of advertising content regulation for TV and Radio in India.

    I read a research paper ‘Surrogate Advertising or Brand Extension Advertising: A Need for Strict Norms’ authored by Prof. Neha Bansal in International Journal of Marketing & Financial Management, Vol. 2, Issue 1, Jan-Feb-2014 ISSN: 2348 –3954. Prof. Bansal presented in her paper a six point formula for developing and implementing strict norms:

    1. Developing an explicit plan of action.

    2. Code to differentiate between acceptable advertising from unacceptable advertising.

    3. Translucent laws for banning such kind surrogate promotion.

    4. More powers in hands of ASCI.

    5. Increase consumer awareness.

    6. Strict actions against those involved to set lesson for future wrong doers.

     

    The Consumer Affairs Ministry and the Ministry of Information & Broadcasting have taken steps in the right direction except involving ASCI in the process. ASCI can also explain to the ministry the need for having a two step approval process, first getting the legitimacy of the brand extension approved and then applying for the approval of the TV commercial to avoid the financial loss of investing in a TVC and then getting stuck at the approval stage on the legitimacy issues. ASCI can also  advise the government regarding the paper work needed for establishing the legitimacy of the products  as ‘non-surrogate’ and as genuine brand extension. We can only hope that good sense will prevail in the implementation of the new rules drafted by the government and adequate notice would be given to the industry for changing their advertising campaigns as per the new guidelines.