‘Self-Declaration’ mandate: Will it curb unethical ads?

The Supreme Court’s directive issued on May 7, 2024, mandates that all advertisers and advertising agencies must submit a ‘Self-Declaration Certificate’ before any advertisement is published or broadcasted. In line with this, the Ministry of Information and Broadcasting (MIB) and the Press Council of India have made it mandatory for advertisers to provide a ‘Self-Declaration Certificate’ starting today, June 18, 2024. This measure aims to curb misleading advertisements and strengthen consumer protection, responding to increasing advertisement violations with stricter regulations.

Advertising holds significant influence over consumer behavior across various platforms such as TV, print, outdoor, and digital media. Misleading claims can profoundly impact individuals’ lives, prompting heightened scrutiny of product communications. Consequently, stakeholders are advocating for greater transparency, verifiability, and trust in advertising. The recent mandate requires advertisers and agencies to confirm that their advertisements do not contain misleading claims and comply with relevant regulations. They must upload this certificate to designated portals for TV, radio, print, and digital media before publication, underscoring the advertiser’s responsibility for every message disseminated.

Ambika Sharma, Founder and MD of Pulp Strategy, acknowledges the directive’s consumer-centric benefits but raises concerns about its practical implementation, particularly in digital advertising. She points out logistical challenges unique to digital campaigns, where multiple creative tests for performance marketing occur simultaneously, questioning the feasibility of multiple declarations under such circumstances.

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, of 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 the 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 behavior, 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 organization. The threat of adverse impact that emerges from this regulation requires that organizations 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 a 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.”