Advertising experts in India would like to be self-regulated, rather than being controlled by the government. The industry would like the Advertising Standards Council of India (ASCI) to have more “teeth” so that it could take necessary steps in getting rid of the misleading advertisements, according to an industry body.
ASCI is a self-regulatory voluntary organisation of the advertising industry.
Instead of establishing an inter-ministerial authority, as proposed by the Department of Consumer Affairs (DCA), to regulate advertising, co-regulation between ASCI and regulators such as DCA, the Food Safety and Standards Authority of India (FSSAI) and the Ministry of Information and Broadcasting would be an effective way-out, said the Confederation of India Industry (CII).
The CII National Committee on Marketing (CIINCM) today released a white paper on regulation in the advertising sector. The paper, titled ‘Self-regulation of Advertising in India: A Critical Analysis’, was prepared in collaboration with KPMG, Amarchand Mangaldas and AZB and Partners.
With co-regulation, ASCI will have more power as it will be working with the government and all other stakeholders, said Thomas Varghese, chairman, CIINCM. ASCI has been doing the same job since its inception in 1985, but without “any punitive power,” according to the document.
“We urge DCA to reconsider its recent proposal to set up a parallel administrative authority, which we strongly feel will delay the process of consumer redressal and be counter-productive to its intent. Instead, we request them to consider partnering with and strengthening the current mechanism of self-regulation through ASCI further, a win-win for consumers, industry and the government,” CII President Adi Godrej said after releasing the paper.
CII has already discussed the matter with the Ministry of Information and Broadcasting which has elicited positive response. However, the industry body is yet to submit the white paper to DCA.
In cases of non-compliance with the Consumer Complaints Council’s decisions, the matter would be referred to the related/parent regulatory body for further actions, added the paper. “We need to spread awareness as much as possible, including the rural mass. Resolutions should be fast-tracked. Sometimes, legal hassles delay these things,” said Sam Balsara, former chairman of ASCI.
The agency is also evaluating a different mechanism — ‘suspend until decided upon’ — to address the issue, Balsara added.
Other recommendations include all industry players should necessarily be asked to become members of ASCI and should integrate the ASCI code of conduct with other regulations such as the Press Council of India’s Advertising Code. ASCI should also regulate advertisements in the digital and social media space and ensure that large digital companies such as Google, Twitter and YouTube become members, recommended CII.
