The supreme court recently passed a directive that advertisers, ad agencies must submit a ‘Self-declaration Certificate’ before publishing any ad or broadcasting any ad. The aim is to ensure consumer protection and responsible advertising practices. The directive comes into force on June 18, 2024.
In principle, it is a right move that encourages advertisers to be responsible. The consumers are entitled to the right information. However, in implementing the directive, there could be an issue of fixing the responsibility. Can the liability be extended to the creative agency? An agency can do checks and balances and exercise due diligence, but it cannot validate all the claims in the ad.
At the same time, agencies who deliberately propagate false claims and misleading information are definitely responsible. However, there are few such cases.
Agencies are in communication business. They are not product experts. The onus ultimately lies with the advertiser.
Besides, agencies are in a mad rush to meet the media release date, and may find it difficult to submit a self-declaration certificate before release.
Objectivity in advertising is sacrificed when brand ambassadors such as celebrities and influencers are used. The ambassador who is a cricketer endorses an air conditioner. He may or may not have used the AC. He may have sacrificed objective decision. Some influencers promote a lot of fluff. The brand ambassadors have a moral obligation towards their followers.
In implementing the directive, there are issues of compliance and adherence to truth in the claims and issues of taking punitive action.
The directive demands accountability from advertisers. There is transparency since access to these certificates allows consumers to verify the claims. There is less amount of misleading ads.
However, the major challenge is to extend this directive to the digital advertising. Digital advertising differs from traditional advertising. There are thousands of creatives running simultaneously on digital media. It is feasible to issue declaration once a year for digital platform. Is it to be done for every single ad? Some clarity is need here. If the answer is yes, then it becomes very cumbersome.
Advertisers are interested in speed and freedom. The directive can slow down them. However, the key is that brands should not hurt. There should be collaboration between agencies and clients — ads which are innovative and at the same time responsible could be produced.
The new process of self-declaration may affect adversely the advertising volume by about 20-30 per cent. There is no clarity of a host of issues — how these regulations will operate, uploading of the documents on the portal for self-declaration and its privacy. The system is fully open to public for all ad campaigns. The website will reveal everything to all parties.
How will the process of certification work for dynamic ads? It is a constraining factor. There is an issue of whether there is inclusion of assets of key opinion leader.
Is it necessary to have a separate declaration for ads based on languages?
Is the mandate applicable to social media posts?
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