The Centre is planning to put tougher curbs on surrogate advertising and sponsored events by liquor makers such as Carlsberg, Pernod Ricard, and Diageo.
This step could force the firms’ hands to reimagine their marketing because, under the new rules relying on consumer law, the brands and endorsers could face penalties of up to Rs 50 lakh, while promoters could face endorsement bans for one to three years, as per reports.
In India, direct promotion of such products has been banned therefore to advertise their products brands turn to surrogate advertisements. They use alternatives like water, glass tumblers, and music CDs or even sponsor events to feature the products. The talks for halting surrogate ads for alcohol and tobacco have been in motion for some time now.
With this ban, both the brands and the endorsers will be under a microscope and won’t be spared if irregularities are found, the reports further stated. Moreover, most of these products are endorsed by highly placed celebrities who have strong stardom.
Recently, the Health Ministry asked the Board of Control for Cricket in India (BCCI) and the Sports Authority of India (SAI) to implement measures aimed at curbing surrogate advertising of tobacco and alcohol products by sportspersons.
In a letter to BCCI President, Roger Binny, and Director General of SAI, Sandip Pradhan, Dr. Atul Goel, Director General of Health Services (DGHS), emphasised that sportspersons, particularly cricketers, serve as role models for encouraging a healthy, active, and productive lifestyle among the youth.
Earlier this year, the Advertising Standards Council of India (ASCI) and the Department of Consumer Affairs (DoCA), in an interactive consultation in Mumbai, deliberated on the ever-growing issue of surrogate ads in restricted categories such as alcohol, tobacco, and gambling.
The consultation between DoCA, ASCI and online gaming associations like All India Gaming Federation and E-Gaming Federation, pointed out the immediate need to stop such advertisements as it is the Indian online gaming industry which is feeling the brunt of illegal advertisements and promotions by Offshore gaming platforms, despite paying taxes and being registered in India.
Surrogate advertising is prohibited by law, however, companies are permitted to promote brand extensions. For example, an alcohol brand may diversify into different product categories and advertise these new offerings, provided the advertisements do not reference the alcohol category.
