Alcohol brands that use glass tumblers, music CDs or playing cards, to subtly promote their products may be required to halt these surrogate advertisements entirely. To continue using such promotional items, brands must provide ongoing evidence that these products have a distinct market presence of their own.
According to reports, the Union Consumer Affairs Ministry is currently preparing new draft rules on surrogate advertising. These draft regulations are anticipated to be released for public feedback within the next 15 days.
Manufacturers will be required to provide regular market reports detailing the availability and sales volumes of their advertised products within the retail sector. Additionally, certificates of sales must be accessible online for public verification to ensure that substantial sales of the advertised products are occurring.
Reports stated that the proposed guidelines will be governed by the Consumer Protection Act 2019, detailing permissible and prohibited actions for firms. An 11-member committee, led by Consumer Affairs Joint Secretary Anupam Mishra, is in the process of drafting these new rules. The committee comprises representatives from both industry and consumer advocacy groups.
Earlier this year, in an interactive consultation convened in Mumbai, the Advertising Standards Council of India (ASCI) and the Department of Consumer Affairs (DoCA) addressed the pervasive 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.
Earlier, in response to the presence of surrogate advertisements by numerous alcoholic beverage brands during the World Cup 2023, the Department of Consumer Affairs (DoCA) took action. Notices were issued to all major manufacturers of alcoholic beverages to address these concerns and assess any potential violations.
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.
