Mumbai: The Advertising Standards Council of India (ASCI) has amended its Code for Self-Regulation in Advertising, introducing a new clause that requires media companies to clearly label paid or sponsored content posted on their social media platforms.
The new Clause 1.8, under Chapter 1 – Truthful and Honest Representation, mandates that any paid post must carry a clear disclosure at the very beginning, so audiences know upfront that it is promotional. Acceptable labels include “Advertisement,” “Partnership,” “Ad,” “Free Gift,” “Sponsored,” “Platform disclosure tags,” and “Collaboration.” This is in line with the Norms of Journalists Conduct, which also require newspapers to clearly separate advertisements from editorial content.
The update comes in response to growing consumer complaints about undisclosed or misleading promotions, particularly on platforms where editorial credibility is high. ASCI said the move is designed to safeguard transparency and protect both audiences and the reputations of media brands in India’s fast-changing digital environment.
Manisha Kapoor, CEO and Secretary General, ASCI, said, “Labelling sponsored content is crucial for several reasons. It builds trust and transparency with the audience, which appreciates knowing whether it’s an endorsement or recommending something in exchange for compensation. Second, it helps to comply with the laws and guidelines, which may require one to disclose any material connection or relationship you have with a brand or product. Finally, it helps avoid potential penalties, fines or legal actions from regulators, who may accuse you of deceptive or unfair marketing practices. ASCI monitors such content closely to avoid any brand influence of misleading content by brands.”
Kapoor further noted, “Several media outlets regularly post editorial content on their social media handles. Increasingly, we see that advertisements with no or poorly visible disclosures are making their way to such posts. To maintain the integrity and trust of media news and features, it is important that sponsored or promoted content is distinguished by means of upfront disclosures. This prevents such advertisements from misleading consumers about their true nature. Consumers have a right to know if they are dealing with sponsored or editorial content right at the beginning.”
The new disclosure requirement is effective immediately and will be actively monitored by ASCI to ensure compliance.
