‘Self-Declaration’ mandate comes into play from today. Will it curb unethical ads?

The Supreme Court issued a directive in its order dated May 7, 2024, that all advertisers/ advertising agencies must submit a ‘Self-Declaration Certificate’ before publishing or broadcasting any advertisement. The Ministry of Information and Broadcasting (MIB) and the Press Council of India have mandated a ‘Self-Declaration Certificate’ for all advertisers starting from today, June 18, 2024, to curb misleading advertisements. This decision follows the Supreme Court order and aims to enhance consumer protection. The move is seen as a step towards transparency on the back of rising advertisement violations prompting stricter regulations. While regulators are raising concerns about the claims made by brands, this poses challenges for advertisers.

Since advertising is ubiquitous in our lives – TV, print, outdoors and digital, it yields power and influence, impacting customer behaviour, purchase, and product usage. Misleading claims can impact people’s lives, and customers are now scrutinizing the materials and communication of products. This has led to stakeholders demanding greater transparency, verifiability, and trust. The latest mandate requires that all advertisers and advertising agencies must affirm that the advertisement does not contain misleading claims and complies with relevant regulations. Advertisers must upload this certificate to designated portals for TV, radio, print, and digital media prior to publishing. This ensures that the responsibility of each message put out into public platforms rests in the hands of the advertiser.

Ambika Sharma, Founder and MD, Pulp Strategy, acknowledges that the directive is beneficial for consumer interests; however, she raises concerns regarding its practical implementation, especially in the realm of digital advertising. She highlights the logistical challenges, noting that unlike television or radio campaigns, where the launch timing and creatives are limited, digital advertising involves numerous simultaneous creative tests for performance marketing campaigns. This raises the question of how many declarations would be required.

According to Sharma, “The certification submission process itself is also time-consuming. The representative signing the declaration must provide their mobile number, email address, a detailed description of the product or service, the full script of the ad, a link to the audio/visual element or PDF for print ads, and the proposed date of broadcast or publication.”

Listing the pros of the new mandate, Yasin Hamidani, Director, Media Care Brand Solutions, said that the MIB self-declaration mandate by the Supreme Court of India for advertisers and advertising agencies can foster greater transparency in the advertising industry. “It may lead to more responsible advertising practices, ensuring that advertisements are truthful, accurate, and compliant with regulations. This could enhance consumer trust and protection against deceptive advertising practices.”

However, among the cons, it could increase administrative burden and costs for advertisers and agencies to comply with the mandate, especially for smaller businesses, said Hamidani, adding, “There may also be concerns about the effectiveness of self-declaration in preventing unethical advertising behaviour, as it relies on the honesty of advertisers and agencies.”

Nikhil Sethi, Partner, National Leader FMCG and Lead, Customer CoE, KPMG in India, commented, “Transparent communication, combined with ethical advertising, helps build long-term relationships with consumers, encouraging loyalty and positive brand perception. Avoiding exaggerated claims and substantiating messages with verifiable data strengthens brand credibility.”

“Practices such as advertising reviews prior to publishing and preventive risk-assessments to avoid potential backlash will now be embedded in the brand strategy of an organisation. The threat of adverse impact that emerges from this regulation requires that organisations invest in verifying the claims of external communication. Misconduct, if any, can be verified and proven with internal and external sources of data,” opined Mustafa Surka, Partner, Risk Advisory Services, KPMG in India.

According to Namrata Rana, Partner, National Head ESG, KPMG in India, “A major area that requires transparency is around claims of green credentials. Brands may associate themselves with a cause, but these claims may not be trustworthy. For instance, making claims such that a product is green, net zero, plastic neutral, water-positive, or having positive social impact – will all need to be verifiable. Building brand trust requires clarity, responsibility, and accurate advertising. Brands should ensure their advertisements reflect true product benefits and ethical practices.”