Advertisers rush to release new ads before June 18; Advised to not issue new ads without SDC after June 18

Given the complexities and practical challenges highlighted by various ad and media industry stakeholders in implementing the self-declaration certificate mechanism, industry bodies have asked the MIB to postpone the process until there is clarity from SC and concerns are addressed by authorities.

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| June 14, 2024 , 8:44 am
In 2020, the Competition Commission of India (CCI) in 2020 ordered an investigation into Amazon and Flipkart for allegedly promoting certain sellers with which they had business arrangements and giving priority to certain listings.
In 2020, the Competition Commission of India (CCI) in 2020 ordered an investigation into Amazon and Flipkart for allegedly promoting certain sellers with which they had business arrangements and giving priority to certain listings.

The media and advertising industries are in a predicament over the Supreme Court mandated self-declaration certificate (SDC) directive for ads. In its attempts to curb the menace of misleading ads, the SC issued an order that would require all ads to provide an SDC before the ad is released.

The SC had issued a directive in its order on SDC on May 7, 2024. Following which, the Ministry of Information and Broadcasting (MIB) introduced a new feature on the Broadcast Seva Portal for TV and Radio Advertisements and on the Press Council of India’s portal for Print and Digital/Internet Advertisements. The certificate, signed by an authorised representative of the advertiser/advertising agency, needs to be submitted through these portals.

Read more: Why digital advertisers find Self-Declaration Certificate for ads impractical

However, ambiguities in the order have left stakeholders confused and grappling for answers. Furthermore, the self-declaration mechanism in its current form has raised serious concerns about its feasibility in an increasingly creative and complex, and velocity and volume-driven adscape, where everything from print ads to programmatic advertising co-exist. Advertisers have called it “unviable” and the industry fears the mechanism will also thwart innovation and stifle creativity, and in its place create ‘extreme bureaucracy’.

After June 18, all new ads must have SDCs, otherwise they cannot be released.

Read more: Advertisers fear ‘unviable’ ad self-declaration mechanism will hurt innovation, creativity; Ask for practical solutions

A recent meeting of MIB and the media and advertising industry stakeholders found no resolution. While the advertising and media industry and related bodies want to abide by the applicable laws and regulations, the order and SDC mechanism have made compliance impossible, said a source close the development. “It’s set up for failure in its current form,” they said.

On July 9 the Ministry will submit an affidavit on the actions taken so far on SDC in the top court. It will also have the opportunity to present reactions of stakeholders to the mandatory SDC directive and mechanism, and their representations.

Industry bodies like FICCI, ASCI, ISA, INS, IBDF and IAMAI, have been engaged in series of deliberations over the SDC mechanism issue in the past week. As concerns and challenges were listed, they also suggested practical solutions to allay some of the concerns. The suggestions include dialing down the all-encompassing scope of the order, limiting its applicability to health and medical ad categories, and not mandating that every single ad must have an SDC. Stakeholders have suggested bolstering and strengthening existing regulatory mechanisms. Industry bodies are said to be considering legal recourse, asking for the Supreme Court’s intervention. It’s applicability for digital advertising is a major point of concern for advertisers and media platforms.

In its letter to the ministry, the Indian Broadcasting and Digital Foundation (IDBF) highlighted the part of the MIB’s advisories which has put an obligation upon the broadcasters/ publishers to verify the authenticity of the self-declaration certificates through the Broadcast Seva Portal. It stated that SC order had not put any such obligation upon the broadcasters/publishers.

Read more: Industry bodies to take legal recourse in ‘self-declaration certificate’ matter

Several advertisers that Storyboard18 spoke to say they have rescheduled campaign releases, advancing the release of new campaigns and ads before June 18. The Advertising Standards Council of India (ASCI) has advised its members not to issue any new advertisements without a SDC after June 18. Any new ad post June 18th can be released with the SDC as mandated by the Supreme Court and as notified by MIB.

Given the complexities and practical challenges highlighted by various ad and media industry stakeholders in implementing the self-declaration certificate for every ad published on digital, radio, broadcast, or in print, the Indian Society of Advertisers (ISA), the Indian Broadcasting and Digital Foundation (IDBF) and the Indian Newspaper Society (INS) have also asked the MIB to postpone the process until concerns are heard by the Supreme Court and there is clarity from the apex court.

Read more: ISA urges MIB to postpone implementation of ‘Self-Declaration Certificate’ mechanism

Read more: IBDF requests MIB to extend compliance period by 45 days for ‘self-declaration certificate’

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