Three prominent Indian ministries unite to regulate misleading digital ads
What's the story
Three high-profile Indian ministries are collaborating to form an inter-ministerial taskforce, according to HT Mint. The goal is to combat misleading and fraudulent advertisements on digital platforms. The Ministry of Information and Broadcasting, the Ministry of Electronics and Information Technology, and the Ministry of Consumer Affairs are spearheading this initiative. The taskforce will create a comprehensive regulatory framework for monitoring social media advertisements, ensuring compliance, and penalizing violators.
Regulatory overhaul
Taskforce to address fragmented regulation of digital ads
Currently, each ministry involved in the taskforce handles different aspects of social media advertising. The Ministry of Information and Broadcasting oversees advertisement content, while the Ministry of Consumer Affairs supervises misleading content and surrogate advertisements. The Ministry of Electronics and Information Technology governs social media platforms. "By themselves, each of the three ministries is unable to take up all the social media advertising-related issues," said one source familiar with the matter.
Initial steps
Taskforce's initial focus: Defining misleading digital ads
The taskforce is expected to be operational by June. Its first priority will be to define what constitutes misleading or fraudulent advertising, and identify companies involved in such practices. The taskforce may also draft laws specifically governing social media ads. Currently, these ads are regulated under the Information Technology Act, 2000, and the Consumer Protection Act of 2019, along with guidelines from the Advertising Standards Council of India (ASCI).
New mandate
Supreme Court mandates self-declaration for advertisements
Recently, the Supreme Court required all firms to submit a self-declaration for all advertisements across all media platforms. This decision was in response to a complaint against false medical claims made by Patanjali Ayurved. Companies must provide evidence of uploading this self-declaration to the broadcaster, publisher, printer, electronic media platform or TV channel, before their ads can go public. Non-compliance could lead to legal consequences, highlighting the seriousness of misleading advertising practices.
Implementation challenges
ASCI expresses concern over implementing new order
ASCI has voiced concerns about implementing the Supreme Court's order due to the vast scale and scope of digital ads. "For local and hyper-local channels and press, as well as smaller platforms, the entire information mechanism will need to be incorporated as part of the technology offering," said Manisha Kapoor, Chief Executive and Secretary General of ASCI. These concerns underscore the complexity of regulating digital advertising in a rapidly evolving landscape.
Consumer protection
Taskforce's role in protecting consumers from misleading ads
Supreme Court advocate and partner at The Precept Law Offices, Manish K. Shubhay, emphasized the importance of curbing misleading advertisements on social media. He highlighted the possible financial loss and health risks associated with false claims. "The proposed taskforce and the resultant regulations for misleading ads may empower the consumers with reliable information, safeguarding their interests and promoting a transparent and fair marketplace," Shubhay stated.