What is the Advertisement Standards Council of India (ASCI)?

The advertising industry in India, as in any other country, plays a critical role in influencing consumer choices and shaping public perceptions. However, with fierce competition and the increasing desire of brands to stand out, it is not uncommon for advertisers to make exaggerated, misleading, or even false claims. This, in turn, can lead to consumer exploitation and confusion, raising the need for regulations to ensure fair practices. 

The Advertising Standards Council of India (ASCI) was established in 1985 to address this challenge. It is a self-regulatory, non-governmental organisation responsible for overseeing advertising standards in India. Advertisement Standards Council of India ensures that advertisements are not misleading, offensive, or hazardous and comply with a set of ethical guidelines to protect consumers’ interests. In this article, we will explore the origins, structure, objectives, and impact of ASCI, as well as the procedures it follows to curb misleading advertising practices.

Origins and Structure of Advertisement Standards Council of India

The Advertising Standards Council of India was founded in 1985 as a voluntary self-regulatory organisation. It operates as a non-profit company, registered under Section 25 of the Companies Act, 1956 (now Section 8 of the Companies Act, 2013). Advertisement Standards Council of India was formed with the support of all four sectors involved in advertising: advertisers, advertising agencies, media, and related organisations such as public relations firms and market research companies. It was a proactive step taken by the industry to self-regulate rather than have government-imposed restrictions on advertising.

The structure of Advertisement Standards Council of India consists of:

• A Board of Governors, which includes 16 members drawn from prominent businesses, media agencies, and advertisers, among others.
• The Consumer Complaints Council (CCC), a body that investigates complaints and decides whether advertisements adhere to the Advertisement Standards Council of India Code.
• A Secretariat, headed by the Secretary General, which oversees the day-to-day operations of the organisation.

While the Advertisement Standards Council of India is not a government body, its role has been widely acknowledged, and in 2006, the Ministry of Information and Broadcasting issued a mandate requiring all TV advertisements in India to follow ASCI’s codes. ASCI’s self-regulatory code is designed to maintain public trust in advertising while ensuring that consumer interests are safeguarded.

Advertisement Standards Council of India’s Mission and Objectives

The primary mission of the Advertisement Standards Council of India is to “preserve and enhance the public’s confidence in advertising”. Advertisement Standards Council of India seeks to ensure that advertisements do not mislead consumers, promote harmful or unsafe products, or violate public decency. The council is committed to fostering fair competition within the advertising industry and to ensuring that consumers are provided with truthful and accurate information.

The key objectives of Advertisement Standards Council of India include:

1. Protecting consumers from misleading advertisements: Advertisement Standards Council of India ensures that advertisements make only truthful claims, and do not exaggerate the benefits of a product or service.
2. Ensuring decency and propriety: Advertisements must not offend the sensibilities of the general public, and should uphold public decency.
3. Promoting fair competition: The Advertising Standards Council of India fosters an environment where advertisers can compete fairly, without resorting to unfair practices such as making false claims about competitors’ products.
4. Preventing the promotion of harmful products: The advertising of products that are deemed dangerous or inappropriate, particularly for children or vulnerable groups, is carefully scrutinised by ASCI.

ASCI’s self-regulatory code is designed to meet these objectives, and it is periodically updated to keep pace with changes in the advertising landscape.

Role of the Consumer Complaints Council (CCC)

The Consumer Complaints Council (CCC) is at the heart of ASCI’s regulatory framework. It plays a pivotal role in investigating complaints related to advertisements that violate ASCI’s code. The CCC consists of a diverse group of members, including experts from advertising, media, and civil society. This diverse representation ensures that complaints are evaluated from multiple perspectives, balancing the interests of both consumers and advertisers.

The process of handling complaints is as follows:

1. Complaint Registration: Consumers, competitors, or even the government can file complaints against any advertisement they deem to be misleading, offensive, or harmful. Complaints can be submitted online, via email, or by letter.
2. Preliminary Assessment: The Secretariat assesses the complaint to determine if it falls within ASCI’s jurisdiction. If it does, the complaint is forwarded to the advertiser for a response.
3. Advertiser Response: The advertiser is given an opportunity to justify the claims made in the advertisement. This may involve providing scientific evidence or other substantiating documents.
4. Decision by CCC: After reviewing both the complaint and the advertiser’s response, the CCC deliberates and issues its decision. If the complaint is upheld, the advertiser is asked to modify or withdraw the advertisement.
5. Ex-parte Decisions: If the advertiser fails to respond to the complaint, the CCC may issue an ex-parte decision based on the available information.

Decisions are typically made within four to six weeks, ensuring a timely resolution to complaints. If an advertiser does not comply with ASCI’s decision, the council may publicise the non-compliance and escalate the issue to regulators or broadcasters.

Scope and Jurisdiction of Advertisement Standards Council of India

While the Advertisement Standards Council of India is a self-regulatory body, it has no statutory authority and cannot impose penalties or damages. Its primary tool is persuasion and moral authority. However, the judiciary has acknowledged ASCI’s role in promoting fair advertising. For instance, in the case of Procter & Gamble Home Products v. Hindustan Unilever Ltd., the Delhi High Court recognised the Advertisement Standards Council of India as a self-regulatory body and noted that while it cannot award damages, it can recommend steps for ensuring compliance with advertising standards.

ASCI’s jurisdiction extends to all forms of media, including print, television, radio, online platforms, and outdoor advertisements. It also covers product packaging, brochures, promotional materials, and point-of-sale materials. This wide scope allows the Advertisement Standards Council of India to regulate advertising across various mediums and industries.

Advertisement Standards Council of India Guidelines and Code of Self-Regulation

ASCI’s Code of Self-Regulation serves as the cornerstone of its regulatory framework. The code outlines the ethical standards that advertisements must follow to ensure fairness, decency, honesty, and truthfulness. The code is regularly updated to keep pace with evolving advertising trends and practices.

Some of the key Advertisement Standards Council of India guidelines include:

1. Truthfulness in Advertising: Advertisements must not contain any statement or claim that is false, misleading, or exaggerated. Claims must be substantiated with evidence, and ads should not mislead consumers through omission or ambiguity.
2. Decency and Propriety: Advertisements must not offend public decency or promote offensive behaviour. This includes ensuring that advertisements do not objectify women, glorify violence, or promote harmful stereotypes.
3. Safety and Health: Advertisements must not encourage behaviour that could endanger consumers’ safety or health. This is particularly important in advertisements for food, health supplements, or products aimed at children.
4. Fair Competition: Advertisements must not disparage competitors’ products or services unfairly. Comparative advertising is allowed, but it must be factual and substantiated.
5. Prohibition of Harmful Products: Advertisements for products that are deemed harmful or illegal, such as certain drugs, tobacco, or alcohol, must follow strict guidelines. Advertisement Standards Council of India also monitors the advertising of liquor brand extensions, ensuring that such ads do not promote the sale of alcohol in indirect ways.

In addition to the core code, the Advertisement Standards Council of India has developed sector-specific guidelines to regulate advertising in industries like healthcare, education, and gambling. For example, in 2021, the Advertisement Standards Council of India issued comprehensive guidelines for online real-money gambling advertisements, requiring disclaimers about the risks involved.

Impact of Advertisement Standards Council of India on the Advertising Industry

ASCI has played a crucial role in raising the ethical standards of advertising in India. Over the years, it has acted against several high-profile brands, ensuring that misleading or harmful advertisements are withdrawn or modified. Some notable examples include:

• Hindustan Unilever: Advertisement Standards Council of India upheld complaints against Hindustan Unilever for making false claims about its Pureit Ultima water purifier, which was advertised as the only purifier with a purity indicator. The CCC found the claim to be unsubstantiated.
• Airtel: Advertisement Standards Council of India directed Airtel to modify its advertisement claiming to have India’s fastest network, following a complaint by its competitor, Reliance Jio. The CCC concluded that the claim was misleading due to ambiguity.
• Online Gambling: Advertisement Standards Council of India introduced stringent guidelines to regulate the burgeoning online gambling industry. Ads promoting gambling services are now required to carry clear disclaimers about the risks involved.

Challenges and Criticisms

While the Advertisement Standards Council of India has been largely successful in regulating advertising, it faces several challenges. One key challenge is its lack of statutory authority. Advertisement Standards Council of India cannot impose penalties or enforce its decisions, relying instead on voluntary compliance from advertisers. While most major brands comply with ASCI’s decisions, smaller or fly-by-night operators may ignore its recommendations.

Another challenge is the changing advertising landscape, particularly with the rise of digital and social media platforms. Influencer marketing, for instance, has become a significant part of advertising, and ensuring that influencers disclose paid partnerships has become a new focus for ASCI. The council has already issued guidelines for social media influencers, requiring them to clearly label paid promotions.

Conclusion

The Advertising Standards Council of India has established itself as a key player in regulating advertising standards in India. By promoting ethical practices, protecting consumers, and encouraging fair competition, the Advertisement Standards Council of India has helped raise the credibility and trustworthiness of the advertising industry. Its self-regulatory approach, supported by industry stakeholders, has proven effective in curbing misleading and harmful advertisements. However, as the advertising landscape evolves with new digital platforms, the Advertisement Standards Council of India will need to continue adapting its guidelines to stay relevant and effective.

While challenges remain, particularly regarding enforcement and the rise of digital advertising, ASCI’s role in safeguarding consumer interests and ensuring fair advertising practices is more critical than ever. By upholding its mission of protecting public trust in advertising, the Advertisement Standards Council of India remains a cornerstone of ethical advertising in India.