The public draft for the new rules of surrogate advertising concerning the alcohol-beverage industry by the Department of Consumer Affairs (DoCA) has been finalised in a detailed and elaborative format and will now be released by the September-end.
Multiple sources close to the development confirmed the same to Storyboard18 on the condition of anonymity.
The Ministry of Consumer Affairs held an internal discussion on the surrogate and brand extension issue and decided not to have provisions including a blanket ban on brand extension or surrogate ads but will come out with new guidelines, on September 23.
The meeting saw participation from the likes of the Advertising Standards Council of India (ASCI) and a couple of advertising agencies.
The consultative process of forming the guidelines though began in February this year, there has only been a tentative timeline for it to be made public, and has been under consulting process ever since.
The draft will be open for feedback and recommendations and has been drafted after having received detailed recommendations from consumer organisations and various advertising bodies.
Storyboard18 earlier reported on the release of the guidelines and how the new set of rules seeks tighter implementation, heavy penalties, the inclusion of digital and social media, and no ambiguity in the definition of surrogate advertising.
Special consideration and thoughts have been given to the clear definition of surrogate ads and what constitutes the ‘brand extension’- the grey area due to which most of the alco-bev brands often are never penalised.
The new draft rules prohibit the promotion of items such as soda, water or music CDs having a similar design, pattern, label or logo to that of restricted products like alcohol and liquor.
Currently, ASCI guidelines and the Central Board of Film Certification (CBFC) guidelines make a very clear distinction between surrogate advertising which is banned by law and brand extension advertising which is permitted by law. These rules are harmonious and have been developed through mutual consultation over time, Manisha Kapoor, CEO and Secretary General at the ASCI had earlier told Storyboard18.
It is to be noted that at present, the CCPA also has guidelines in place to curb surrogate advertising. In its guidelines for ‘Prevention of Misleading Advertisements’ issued in December 2022, CCPA stated that no advertisements can be made suggesting directly or indirectly that it is for goods, products, or services whose advertising is otherwise prohibited/ restricted by law.
The guidelines, however, provide an exception, whereby, a brand used for ‘prohibited’ goods/ products, services could be used for other goods so long as it does not otherwise violate the guidelines. This exemption is vague, according to the industry safeguards and it is unclear whether the prohibition on surrogate advertising is absolute or not. Result of which, CCPA continues to identify and observe multiple instances where liquor brands are violating these regulations.
Also to note that the rules for direct advertising of alcohol are controlled by each state, and they are the ones who have to act in case of any breach. ASCI constantly brings these violations to the attention of the respective authorities, especially on the digital media where large number of informercials ads are commonly found.
Last year, ASCI reported 82 commercials of direct alcohol ads and 65 commercials of vaping and e-cigarettes to various authorities for further action.
The upcoming new rules also provide that companies that violate the guidelines could face fines of up to Rs 50 lakh and celebrities endorsing such ads risk facing bans lasting 1-3 years. Further, celebrities used for brand extensions will have to be distinct from the celebrities considered for a restricted product.
Read more: Ad spends likely down by 30% for alco-bev brands as govt cracks whip on surrogate ads
While alco-bev’s adex remains not more than 2% of the overall country’s adex, it is one of the major categories that spend hefty when it comes to marquee properties like the Indian Premier League. With stringent regulations coming in, one may see the companies reducing advertising spends by 20-30% for the brand extensions, Storyboard18 reported last month.
Meanwhile, the Centre will also issue guidelines on prohibition of “green washing/misleading environmental claims,” soon. The government is separately working on the same and is in the process of finalising guidelines on prohibition of surrogate advertisements. Further, the consultation process is on for finalising guidelines on prohibition of misleading advertisement in coaching industry.