In line with a recent Supreme Court directive, the landscape of advertising across television channels, print, and digital media is set to undergo a significant transformation. Effective June 18, it will be mandatory for advertisers to submit a self-declaration certificate (SDC), duly signed by an authorized representative, before broadcasting or publishing any advertisement. This mandate, emphasized by ministry officials, underscores a rigid compliance framework aimed at ensuring transparency and accountability in the advertising sector.
The new requirement for a self-declaration certificate represents a pivotal move towards greater regulatory oversight in advertising. While the objective of fostering transparency is commendable and appreciated by the industry, the abruptness of its implementation raises concerns. According to the latest reports, advertising industry might file an intervention petition in the apex court to the address the issue.
“The intent behind the self-declaration certificate for advertisements is certainly commendable. It signifies a proactive approach towards consumer protection and combats misleading marketing practices,” notes Vishal Rupani, Co-founder of Sprect.com.
Naresh Gupta, Co-founder of Bang in the Middle, shares a similar sentiment, stating, “This is one of the best things that could have happened to the creative industry. While there is freedom to create, there are rules, and we need to respect them. With markets expanding, new brands, and no old conventions to follow, brands and agencies have often created content that is irresponsible and in violation of existing rules, exposing them to libel.”
Gupta adds, “It’s a good thing that brands and agencies will need to be aware of what they have created and how it may impact them. From what I have seen the process is easy, it’s self-certification. So yes, there is extra work that agencies will have to do. Take a declaration from client, file on portal and keep a record, but that’s not a bad thing. I have heard that this will slow down work, but to me correct is more important than fast.”
Practical Challenges and Implementation Issues
According to Arun S. Nair, Branding & Marketing Consultant at ANG – The Brand Artists, the Supreme Court directive theoretically brings accountability and responsibility to advertisers.
However, he also points out the practical challenges it presents.
“In today’s world where digital and AI-based advertising are at their peak, we work on hundreds of combinations to optimize each campaign. Procuring SDCs for each seems challenging as it may require us to invest more time and manpower into compliances. Any encashment into moment marketing will have to take a back seat until agencies figure out the process. Introducing manual certifications in digital times seems like reversing the wheel,” Nair explains.
Vikas Chawla, co-founder, Social Beat, said, “In principle it’s a good move and will help streamline advertising as well as reduce number of ads that have misleading claims and promises. That being said the implementation and enforcement is not going to be easy. Especially on digital, the volume of these creatives and ads is very high. Secondly, there is a lot of users generate content where the brands partners with creators. So, there are still challenges to solve for.”
An industry observer notes, “The ministry’s unwillingness to entertain feedback or delay the start date indicates a rigid approach that may pose challenges for advertisers scrambling to adapt. Balancing regulatory intentions with practical execution will be crucial to avoid disruption and ensure the intended benefits of the directive are realized without stifling the industry.”
Need for a Collaborative Approach
Rupani suggests that a more collaborative approach with the advertising industry during the development phase could have yielded a more streamlined and efficient implementation.
He elaborates, “India already possesses a robust legal framework to address misleading advertisements, including the Consumer Protection Act and the Advertising Standards Council of India (ASCI) code. Strengthening enforcement of these existing regulations, alongside industry self-regulation initiatives like those championed by ASCI, could have achieved similar results without creating additional burdens.”
One key concern surrounding the new system lies in the ambiguity around the approval process.
“Advertisers are unclear whether they can run ads before receiving approval from the designated portals, and there’s no clear path for resolving content disputes that may arise between advertisers and authorities. This lack of clarity could lead to delays, frustration, and potential legal challenges. The sheer volume of advertisements, particularly on social media, raises questions about the government’s infrastructure and resources to handle this influx effectively,” Rupani said.
Impact on the Advertising Ecosystem
Managing a system designed for television and print advertisements might not translate seamlessly to the dynamic environment of social media marketing. Ultimately, the mandatory self-declaration certificate could lead to delays in campaign execution, potentially impacting the fast-paced nature of advertising. Rupani further mentions the disadvantages the directive may impose on advertisers.
“Concerns about revealing sensitive details in the declarations, such as specific creative strategies or unique selling propositions, could put advertisers at a disadvantage. The advertising industry thrives on innovation and efficiency, and an overly cumbersome system could stifle creativity. Another significant concern is the potential impact on international advertising spending in India. The additional compliance burden imposed by the self-declaration certificate may discourage international advertisers targeting the Indian market. This could lead to a decrease in advertising revenue for Indian media companies, impacting their bottom line,” he added.
Jonathan Sreekumaran Chief Business Officer, 4AM Worldwide said, “The move introduces several challenges for the industry. Companies will need to adapt quickly to the new requirements to avoid disruptions. In the long term, however, this move could foster a more ethical and trustworthy advertising environment, benefiting both consumers and reputable advertisers. The immediate impact will likely include increased operational costs and potential delays in ad campaign rollouts, but these can be mitigated with effective planning and the development of new compliance mechanisms.”
Upendran Nandakumar, Founder and CEO Ayatiworks Technologies share a similar opinion,
“While the directive aims to ensure greater accountability and ethical standards, the industry will face increased compliance costs, potential delays, and impacts on creativity. Advertisers must adapt to these changes through strategic planning, possibly leveraging technology to streamline the compliance process and maintain their competitive edge in the market,” he concluded.
