For years, the Department of Consumer Affairs (DoCA) and the Advertising Standards Council of India (ASCI) both have been operating with a mutual goal of protecting consumer interests.
But in a recent first, the Central Consumer Protection Authority (CCPA) and ASCI have come together with an aim and objective to resolve the issue of misleading advertisements.
In the past couple of years, both ASCI and DOCA have held joint consultations and collaborations on several issues surrounding advertising such as Influencer Guidelines, Greenwashing, Dark Patterns and Surrogate Advertising, creating greater dialogue and alignment between industry, civil society and regulators.
While it is no news that advertising self-regulators around the world work closely with the governments in models of co-regulation in formal and informal ways, it is the complex nature of advertising and the borderless nature of the online space, today, which has spurted issues like disguised advertising, deepfakes and scams and as a result, such partnerships tend to gain significance in effective advertising regulation.
As of now, all of ASCI’s code and associated guidelines in the area of advertising, be it concerning misleading advertisements, dark patterns, influencer guidelines, coaching institutes, greenwashing and more, are all harmonious with several guidelines enforced by the CCPA.
In light of this alignment between the CCPA and ASCI, the former has recognized that any violation of ASCI’s code pertaining to misleading advertisements may potentially contravene the Consumer Protection Act of 2019 and its related guidelines.
Having recognized that, the CCPA has also requested ASCI to forward any advertisement that is non-compliant with the ASCI Code and could potentially violate the Consumer Protection Act, 2019, along with its accompanying guidelines, to CCPA for appropriate action.
With that being said, any such case which is escalated by ASCI concerning misleading advertisements will be promptly addressed and handled in strict accordance with the Consumer Protection Act 2019 by the CCPA.
Commenting on this development, Rohit Kumar Singh, Secretary DoCA said, “The alignment between ASCI’s code and CCPA’s guidelines highlights a collective effort towards promoting transparency and fairness in advertising. With similar objectives, CCPA and ASCI can work in complementary ways to ensure that any infringements are addressed effectively. New challenges are being created by digital advertising, and keeping pace demands a collaborative approach with like-minded bodies. Regulators working closely with self-regulators is an established best practice, and we hope that with this partnership, regulation of Indian advertising keeps getting more effective. Where voluntary compliance with the CCPA guidelines is not forthcoming, or in the case of repeat offenders, the CCPA has the powers to impose fines and penalties. We will not shy away from enforcing the provisions of the Consumer Protection Act as needed.”
To this, Manisha Kapoor, CEO and Secretary-General ASCI, also added, “We have been working closely with DoCA and CCPA on several issues, and we are truly delighted to deepen this relationship. ASCI has deep expertise and specialization in advertising regulation and we thank CCPA and DoCA for their trust and their collaborative approach. A robust self-regulatory system helps all stakeholders and this partnership is a positive step in taking self-regulation to the next level.”
