Saturday, March 7, 2015

SELF- REGULATION IN ADVERTISING

SELF- REGULATION IN ADVERTISING
The advertising industry has a reasonably effective and efficient self-regulation mechanism. By self –regulation it is meant that advertisements should be such that they do not violate the Code of self regulation , laid down by various statutes in India as well as abroad. This is done in order to maintain honesty and truthfulness in the advertisement of products and services shown to prospective customers with a view to attract them towards their goods. It is rightly said – Advertising is essentially a thing to induce consumption to make people buy things they do not want. In such a process, advertisements tend to mislead people, so that they buy things they really do not need.”
A product or service may be advertised through a variety of methods such as hand –bills, circulars, direct mail, bill- boards, signboards, newspapers, magazines, radio, television, the internet and so on. There are various kinds of advertising such as – comparative advertising which compares the advertised brands with another brand of the same product. ; Competitive advertising which contains very insignificant information about advertisement and is used only to help a producer maintain a share of the market.
Advertisement is a facet of right to information. A vital aspect of advertising that makes it a part of Article 19(1)(a) is that it facilitates the dissemination information about who is selling what product and at which price. Advertisements help people make well-informed and intelligent economic choices. More important than the right of expression of the advertiser is the right of the recipient of the advertisement. The supreme court observed in Tata Pres V/s Mahanagar telephone Nigam Ltd. – ARTICLE 19 (1)(a) not only guarantees right of freedom of speech and expression but the but it also protects the right of an individual to listen, read and receive “ commercial speech”. So far the economic needs of a citizen are concerned their fulfilment has to be guided by the information disseminated through advertisement. The recipient of “commercial speech” may be having greater interest in the advertisement given. Such deeper interest can be dealt with dishonesty by the advertiser as the consumer totally relies on the information provided by the advertiser through his advertisement of the given product.
To regulate advertisement according to the self regulation code and also otherwise is provided for in certain statutory provisions – say for example, Indian penal code, 1860 makes it a punishable offence to advertise any obscene publication or its distribution, sale, hire or circulation or so on. Now the code for self regulation in advertising pertinent extracts adopted by the Advertising Standard council of India Under Article 2(ii) of its Article of association.
The Advertising Standards Council of India (ASCI) (1985) has adopted a Code for Self-Regulation in Advertising. It is a commitment to honest advertising and to fair competition in the market-place. It stands for the protection of the legitimate interests of consumers and all concerned with advertising - advertisers, media, advertising agencies and others who help in the creation or placement of advertisements. As the Code becomes increasingly accepted and observed pro-actively, three things will begin to happen.
This Code for Self-Regulation has been drawn up by people in professions and industries in or connected with advertising, in consultation with representatives of people affected by advertising, and has been accepted by individuals, corporate bodies and associations engaged in or otherwise concerned with the practice of advertising, with the following as basic guidelines, with a view to achieve the acceptance of fair advertising practices in the best interest of the ultimate consumer:
I.   To ensure the truthfulness and honesty of representations and claims made by advertisements and to safeguard against misleading advertisements.
II. To ensure that advertisements are not offensive to generally accepted standards of public decency.
III. To safeguard against the indiscriminate use of advertising for the promotion of products which are regarded as hazardous to society or to individuals to a degree or of a type which is unacceptable to society at large?
IV.    To ensure that advertisements observe fairness in competition so that the consumer’s need to be informed on choices in the market-place and the canons of generally accepted competitive behaviour in business is both served.
The Code’s rules form the basis for judgment whenever there may be conflicting views about the acceptability of an advertisement, whether it is challenged from within  or from outside the advertising business.  Both the general public and an advertiser’s competitors have an equal right to expect the content of advertisements to be presented fairly, intelligibly and responsibly.  The Code applies to advertisers, advertising agencies and media. These three major participants in the advertising process work individually and collectively to encourage truthful, ethical, and responsible advertising.
Which only means more freedom for you to practise your craft or carry on your business effectively? As a member of ASCI, you can mould the course of Self-Regulation and participate in the protection of healthy, effective advertising. You can have a say, through the Board of Governors, in the further development of the Code and future appointments to the Consumer Complaints Council (CCC). Membership of the ASCI (open only to Firms) entitles you to appoint your nominee to discharge your function as a member
Nothing can be better than self-discipline. External regulations imposed by law would not really be necessary if this ideal would have been effective. In this article, I will deal with malpractices in advertising and misleading which after complaint to the ASCI had to be taken off the Air. Advertisement and how efficacious or meaningless is the so-called self regulation in advertising by the Advertising Standards Council of India (ASCI) having its office at Bombay.
Every day we see various advertisements on various mass media example – television, internet, radio. Many of these advertisements are objectionable. As recently there was an objectionable advertisement of Amul Macho underwear which after complaint to the ASCI had to be taken off the Air.
The difficulty is in describing what is obscene advertisements, because what is obscene is subjective and depends on individual perceptions. Here reference is on patently false and misleading and uncomfortable advertisements. We regularly come across advertisements which promote dubious products, making unsubstantiated tall claims about their wondrous performance. The side-effects or the harmful effects of these products are invariably suppressed. Advertisers often make misleading statements about the utility of their products. What is done to check these misrepresentations?
The ASCI has formulated its self-regulatory code which is wonderfully attractive on paper. But what does it do about misleading advertisements? No attempt is made to caution the public about the misrepresentation. No press release is issued to make the public aware that they should not believe these misrepresentations.
It is necessary to pin point the areas where consumers require to be cautioned in order to prevent them from being misled by such advertisements. A genuine example would be- it is common to see on railway platforms and in trains’ advertisements of quacks posing as doctors. The commonest advertisements are for piles and abortion clinics. The Medical Council’s Code of Ethics prevents doctors from advertising. Disciplinary action is taken against doctors who advertise their services or against those who participate in advertisements for promoting a particular medicine, vitamin or drug. Hence genuine doctors do not advertise. Those who seek confidentiality for their problems fall prey to these quacks. Yet the Railway Administration is not bothered about these advertisements.
The Drugs and Magic Remedies (Objectionable Advertisement) Act, 1954. This Act prohibits the advertisement of any diagnosis, cure, mitigation, treatment or prevention of certain diseases / disorders / conditions listed under the Schedule to this Act. There is a celebrated case law which falls under the ambit of this laws blatant violation it is Hamadard davakhana case. The facts of the case was a drug was advertised it have the quality to magically cure certain types of diseases, which in fact was not so. The court held that these are misleading advertisement and the defendant had been held liable.
The Schedule lists 54 such disorders and conditions amongst which are included cancer, obesity, fits, sexual impotence, and also drugs for maintaining or improving sexual pleasure, or drugs... for causing miscarriage or prevention of conception.
The Act provides that its violation would be a cognizable offence. Even the media which carries or displays the advertisement commits the offence by participating in the advertising process. Yet the police do not take cognizance of such advertisements. The lucrative and recurring revenue generated by these advertisements is more important to newspapers, television channels and advertising agencies and it is profitable to disregard the law.
When nobody is bothering about such advertisements, not even consumer organizations, why should ASCI is expected to take action? Because ASCI has been set up by businessmen and industrialists specifically for self-regulation in advertising. Why should it make a farce of the whole complaint process?
The classical example would be the Cola wars. Can anybody deny these as to be blatant misleading expressions of these Colas, as in they are so important for survival? But nobody has the courage to question them because they are huge and powerful companies.


Conclusion

The code of self –regulation drawn up for advertisers India is not at all sufficient and there should be more sincere observance of the code. However whenever there is competitive advertisement the competition drags each of the advertisers to the ASCI which is a non –statutory body. But whenever there is breach of public confidence by these advertisers by showing misleading advertisements, they should be immediately checked to safeguard the interest of innocent customers. Moreover there should be a statutory regulatory authority instead of ASCI which is non statutory which being so, has no binding authority on the non-members. This would definitely help to improve the quality of advertisements in India















Legal aspects in standards of code of conduct
Advertising to Children (advertising during and immediately before and after children's programming)
The Young Persons (Harmful Publications) Act, 1956 prohibits advertisements relating to any harmful publication i.e., any publication that tends to corrupt a young person (person under the age of 18 years) by inciting or encouraging him or her to commit offenses or acts of violence or cruelty or in any other manner whatsoever.
According to the ASCI Code, advertisements addressed to minors shall not contain anything, whether in illustration or otherwise, which might result in their physical, mental, or moral harm or which exploits their vulnerability. For example, advertisements may not:
  • Encourage minors to enter strange places or to converse with strangers in an effort to collect coupons, wrappers, labels or the like
  • Feature dangerous or hazardous acts which are likely to encourage minors to emulate such acts in a manner which could cause harm or injury
  • Show minors using or playing with matches or any inflammable or explosive substance; or playing with or using sharp knives, guns, or mechanical or electrical appliances, the careless use of which could lead to their suffering cuts, burns, shocks, or other injury
  • Feature minors in promoting tobacco or alcohol-based products
  • Feature personalities from the field of sports, music, or cinema for products which, by law, either require a health warning in their advertising or cannot be purchased by minors.
Example:
 Sunfeast Milky Magic Biscuits in which a child was given sunfeast biscuit and he instantly grows taller and is able to reach the basket.
Comparative Advertising (ads that compare the advertiser's product to that of a competitor)
The provisions pertaining to comparative representation were part of "Unfair Trade Practice" under the Monopolies and Restrictive Trade Practices Act, 1969 (MRTP Act). After repeal of the MRTP Act, the provisions relating to unfair trade practices were inserted in the Consumer Protection Act, 1986. However, a business entity cannot claim relief against unfair comparative advertising under the Consumer Protection Act, as a business entity is not a consumer. This can be taken up only by consumer associations, the central government, or state governments, and it does not provide protection to the business entity equal to the protection under the MRTP Act. Thus, under the existing law, a manufacturer whose goods are disparaged has no standing to seek a remedy. Presently, in the absence of any specific legislative regulating comparative advertising, disputes are decided by various courts on the basis of the facts in each case. However, ASCI code (which is made part of the Cable Television Network Rules, 1994 as well) permits advertisement containing comparisons including those where a competitor is named in the interests of vigorous competition and public enlightenment, provided:
  1. It is clear what aspects of the advertiser's product are being compared with what aspects of the competitor's product.
  2. The subject matter of comparison is not chosen in such a way as to confer an artificial advantage upon the advertiser or so as to suggest that a better bargain is offered than is truly the case.
  3. The comparisons are factual, accurate and capable of substantiation.
  4. There is no likelihood of the consumer being misled as a result of the comparison, whether about the product advertised or that with which it is compared.
  5. The advertisement does not unfairly denigrate, attack or discredit other products, advertisers or advertisements directly or by implication.
Presently, ASCI is actively taking action against any advertisements making unsubstantiated claims, exaggeration, unfair denigration in violation of ASCI Code.
Example: Tide vs Rin
Rin released an advertisement that made Tide’s product inferior. There are statements that the results are tested by the independent laboratory and the ad is issued in the public interest of RIN users.
Complan vs Horlicks
Contests (games of chance and games of skill)
The Public Gambling Act, 1867 prohibits gambling activities in India. However, the Public Gambling Act permits games of mere skill.
Deceptive or Misleading Advertising
Deceptive or misleading advertisements are restricted under the various legislations including the Consumer Protection Act, 1986; Cable Television Network Rules, 1994; Norms for Journalist Conduct issued by the Press Council of India Act and ASCI Code.
Example:  Maggie Soups
ASCI have asked Nestle to get rid of promotional claims made on Maggi packs about its soups being "heart friendly". It was making false claim of Maggie soup being heart friendly.
 Complaint against Glaxosmithkline Consumer Healthcare's Boost's ad was also upheld. As per the complaint, the TVC claims that "the consumption of Boost not only increases oxygen consumption but gives three times more stamina".
Surrogate Advertising
The ASCI Code provides that advertisements of products whose advertising is prohibited or restricted by law or by the ASCI Code must not circumvent such restrictions by purporting to be advertisements for other products the advertising of which is not prohibited or restricted by law or by ASCI Code. To determine if there is an indirect advertisement of prohibited products due attention shall be given to the following:
  1. Visual content of the advertisement must depict only the product being advertised and not the prohibited or restricted product in any form or manner:
  2. The advertisement must not make any direct or indirect reference to the prohibited or restricted products
  3. The advertisement must not create any nuances or phrases promoting prohibited products
  4. The advertisement must not use particular colours and layout or presentations associated with prohibited or restricted products
  5. The advertisement must not use situations typical for promotion of prohibited or restricted products when advertising the other products.
The Cable Television Networks Rules, 1994 has also imposed similar restrictions to curb surrogate advertising.
Example:  Royal Challenge, King Fisher Mineral Water etc.
1. Bagpiper: It is a famous brand of whisky. In advertisement actually Bagpiper Club Soda is shown at the place of whisky.
2. Royal Stag: It is well known as 'RS'. Instead of advertising whisky, manufacturer had shown. Music CD and Mega Cricket in the advertisement with theme "Make it Large". But people never try to purchase these products. They always know that Royal Stag means whisky.
3. McDowell's No.l Platinum: This whisky brand is advertised with surrogate product Soda. Indian Cricket. Team skipper MS Dhoni' tells that, "The No. 1 Spirit of Leadership". Through soda company is advertising their whisky products.
4. Hayward's 5000:This brand is also advertised with the help of soda and packaged drinking water, but many people know very well that Hayward’s 5000 & 10000 are whisky, beer brands.
5. 8PM: Advertisement of this whisky is different than all of others. In first scene, few youth girls and boys are moving somewhere rapidly. In next scene they are going show & see "Aath ke Thaat" in a disco club. Means indirectly, enjoy after drinking 8FM Whisky.
 6. Imperial Blue: This whisky is popularized by showing music cd's in the advertising.i.e. Imperial Blue Music CD's.
 7. Royal Challenge: Some cricketers are shown in this advertisement, at the same time music is played. At the end of advertisement brand name 'Royal Challenge' is displayed in bold letters with very small 'Music CDs'. It was also advertised with the help of mineral water.
 8. Officer's Choice:
'OC is the leading and well-known brand in whisky market. Actually this brand is advertised by showing mineral water and soda, but all people can know what intention of that advertisement is. It shown that 'OC' is the brand of officers and dynamic people.

Advertorials and Disguised Ads
The Norms for Journalist Conduct issued by the Press Council of India, Cable Television Network Rules, 1994 and Advertising Code of Doordarshan requires that advertisements must be clearly distinguishable from news content carried in the newspaper.
False Advertising
False advertisements are restricted under the various legislations including the Consumer Protection Act, 1986; Cable Television Network Rules, 1994; Norms for Journalist Conduct issued by the Press Council of India Act and ASCI Code.
Example: Pepsodent
Advertisement of Hindustan Level saying that Pepsodent is “one and a half times better at fighting germs than the popular toothpaste” that appeared in Sunday Times of India in September that year.. The complainant alleged that HLL’s own clinical tests confirmed that Pepsodent Germicheck fights germs up to 150 that is only 0.5 times better and not one and a half times better, as claimed in the ad
"Free" Gifts/Samples
The Consumer Protection Act 1986, Section 2 (3) (a) states that (i) the offering of gifts, prizes or other items with the intention of not providing them as offered or creating impression that something is being given or offered free of charge when it is fully or partly covered by the amount charged in the transaction as a whole, or (ii) the conduct of any contest, lottery, game of chance or skill, for the purpose of promoting, directly or indirectly, the sale, use or supply of any product or any business interest, is an unfair trade practice.
The Norms for Journalist Conduct issued by the Press Council of India has stated that gift including those given by the advertisement agencies for publication of material relating to their clients or otherwise should not be accepted by the journalist.


Free Speech (specific limitations, e.g. personal slurs, defamation, political statements)
Article 19(1)(a) of the Constitution of India protects the right to freedom of speech and expression, which is also extended to advertisements. However, like any other right, this freedom is also subject to reasonable restrictions imposed by Article 19(2) of the Constitution of India.
Furthermore, the ASCI Code states that no advertisement shall be permitted which:
  • Derides any race, caste, color, creed, or nationality
  • Tends to incite people to crime or to promote disorder and violence or intolerance
  • Presents criminality as desirable or directly or indirectly encourages people, particularly minors, to emulate it or conveys the modus operandi of any crime
  • Adversely affects friendly relations with a foreign state

Products and Services Banned From Advertising

Tobacco
The Cigarettes and other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003 ("Tobacco Prohibition Act") prohibits all direct and indirect advertising of tobacco products in all media.
Human Organs
The Transplantation of Human Organs Act, 1994: This law provides for the regulation of removal, storage and transplantation of human organs for therapeutic purposes and for the prevention of commercial dealings in human organs. This law prohibits any advertising inviting persons to supply, offering to supply and any human organ for payment.
Magical Remedies
The Drugs and Magical Remedies (Objectionable Advertisements) Act, 1954 prohibits advertisement of magical remedies of diseases and disorders.
Services for Pre-Natal Determination of Sex
The Prenatal Diagnostic Techniques (Regulation and Prevention of Misuse) Act, 1994 prohibits advertisements relating to pre-natal determination of sex.


Infant formula
Advertising forbidden in order to encourage natural feeding of infants. See details under Food.
Prize Chits and Money Circulation Schemes
The Prize Chits and Money Circulation Schemes (Banning) Act, 1978 prohibits advertisements relating to prize chit2 and money circulation schemes.
Physicians
Under the Indian Medical Council (Professional Conduct, Etiquette and Ethics) Regulations, 2002, issued under the Indian Medical Council Act, 1956, physicians are not allowed to advertise their services in any form or manner of advertising through any mode, as soliciting of patients directly or indirectly, by a physician, by a group of physicians, or by institutions or organizations is unethical. (A physician refers to a doctor with a qualification of MBBS or MBBS with a postgraduate degree/diploma or with an equivalent qualification in any medical discipline.) However, medical practitioners are allowed to make a formal announcement in press regarding the following:
·         On starting practice
·         On change of type of practice
·         On changing address
·         On temporary absence from duty
·         On resumption of another practice
·         On succeeding to another practice
·         Public declaration of charges
Legal Services
The Bar Council of India Rules formulated under the Advocates Act 1961 strictly enforce the advertisement ban and publicity rules governing law firms' websites. These rules were enacted and enforced to curb the false advertisement of lawyers to gain publicity to attract clients.

Alcohol (Beer, Wine, and Spirits)

The Cable Television Network Rules, 1994, the Advertising Codes of Doordarshan, and the All India Radio and Norms for Journalist Conduct issued by the Press Council of India prohibit any advertisement directly or indirectly promoting the production, sale, or consumption of cigarettes, tobacco products, wine, liquor, or other intoxicants. However, some states allow advertising through billboards, signboards etc. but subject to many restrictions. Also, the ASCI Code prohibits use of minors for advertising alcohol products.

Professionals such as Chartered Accountants, Company Secretaries & Cost Accountants

These professionals are prohibited from soliciting clients or professional work by advertisement. However, they may issue advertisements about their firm or services of their firm, through any mode of transmission, having inter alia details of names of partners, address and website, telephone, mobile, e-mail, fax number of the member, year of establishment, additional recognized qualifications, languages spoken by the partner(s), honours or awards in the field of teaching, research, authorship etc.




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