Smokescreen around surrogate ads of regulated products clears with govt ban

New guidelines stipulate that indirect ads of regulated products such as liquor and tobacco will not be permitted

Last month, actor Akshay Kumar found himself at the centre of a controversy when he appeared alongside peers Ajay Devgn and Shahrukh Khan in an advertisement for Vimal Elaichi.

Cardamom seeds, pearl and saffron pods have long been positioned as surrogates for pan masala, a smokeless tobacco product whose advertising is not permitted in the country.

For an actor, who had publicly stated a few years ago of the need for celebrities to stay away from surrogate advertising, the U-turn was striking.

Kumar was mercilessly trolled on social media. So was Amitabh Bachchan, who terminated his contract with a pan masala brand after commercials featuring him and actor Ranveer Singh appeared on television late last year.

On Friday, the government took the decisive step of banning surrogate ads.

Consumer affairs secretary Rohit Kumar Singh said, “Advertisements have great interest for consumers. Under the Consumer Protection Act (2019), there are provisions to handle misleading ads. However, to make it more explicit, clear and aware to the industry, the government has come out with guidelines for fair advertising. This includes prohibiting surrogate ads.”

The new guidelines state that an advertisement, which directly or indirectly indicates that it is a promotion for a product or service that is prohibited or restricted by law, will be regarded as a surrogate ad.

Also, advertisements using any brand name, logo, colour, layout and presentation associated with a product or service whose ads are restricted will be considered as surrogate ads.

Experts have welcomed the move, but insist that the rules have to be enforced strictly, if the issue has to be resolved.

“Surrogate advertising has flourished despite regulation in place. The Cable Television Networks (Regulation) Act, 1995, clearly prohibits direct or indirect promotion and advertising of cigarettes, tobacco products, wine, alcohol, liquor and other intoxicants. Yet, surrogate advertising by alcohol and tobacco product companies are visible to this day on television and digital media. The rules have to be strictly enforced in my view,” said Sandeep Goyal, managing director of ad agency Rediffusion.

Shweta Purandare, advertising compliance expert and former secretary-general of the Advertising Standards Council of India (ASCI), said the law (Cable Television Networks (Regulation) Act) defines what a genuine brand extension is versus one that is not for products whose advertising is curbed in the country.

“Alcohol and tobacco brands, however, have circumvented the rules to pass off products such as bottled water, music labels, soda and flavoured condiments (in the case of masala pan and gutkha) as extensions of their flagship. The bigger challenge is monitoring social media, where these brands are directly reaching consumers through their twitter handles and Instagram pages. Also, sponsorship of events by these brands remains a grey area,” said Purandare.

While ASCI has banned surrogate ads of liquor brands in the past and has even revised the criteria for surrogate advertising as part of its advertising code, challenges with regard to enforcement remain.

According to market research company IMARC, the pan masala market in India reached a value of Rs 41,821 crore in 2021 on the back of celebrity endorsements and promotions. By 2027, this market would touch Rs 53,081.5 crore, IMARC said, as brands continued using popular faces to drive home their message.

“The issue of surrogate advertising would have never emerged if categories such as alcohol and tobacco, which are legitimately manufactured and taxed in the country, were restrained from direct advertising,” argues Abhijit Avasthi, founder, Sideways Consulting.

“Indirect advertising is happening because there are consumers of these products. How do you reach this audience?” he asks.

But some experts point to the social responsibility of advertising, saying “sin” categories such as alcohol and tobacco require regulation. The government concurs with this view.

“The idea of these guidelines is to prevent misleading advertisements of any kind. This includes surrogate ads. Moreover, it aims to empower consumers and consumer organisations to file complaints against these advertisements,” Singh said.

N Chandramouli, chief executive officer (CEO) of brand insights and consultancy firm TRA Research, said surrogate advertising is simply not right. “There is no excuse for surrogate advertising. It is wrong because the advertiser is sidestepping the rules to promote a product. This should not be happening,” he said.

For now, Kumar, Devgn and Khan’s Zubaan Kesari commercial for Vimal Elaichi is not visible on national television, though Rajnigandha and Raj Niwas pan masala have their commercials running on air.

At the same time, actor Sanjay Dutt continues to endorse All Seasons club soda, a surrogate for All Seasons whisky, on television. Clearly, the fight against surrogate advertising is not over yet.