New consumer law to give advertisement regulator more powers

Consumer Protection Act, 2016, will empower Advertising Standards Council of India to act across media in checking misleading advertisements

The Advertising Standards Council of India (ASCI), an apex body that works on the principle of self-regulation in the sector, could soon have powers to check misleading ads across media and segments under the proposed new Consumer Protection Act, 2016.

The parliamentary committee, which looked into the Bill, had recommended this earlier. Sources told Business Standard the government is considering the proposal before the Bill is presented in Parliament in the winter session.

At present, ASCI has powers only for television advertisements. In case an advertiser violates its code - detailed guidelines on advertising - it is asked to modify the aberrant advertisement. If the advertiser does not comply, the matter is referred to the Union information and broadcasting ministry, which takes penal action.

Under the changes proposed in the Bill, ASCI will be a partner of the Consumer Protection Authority (CPA), a nodal body.

ASCI will keep track of advertisements in all media and ask advertisers who violate the rules to modify their campaigns. If the advertiser does not comply, the matter will be referred to CPA.

Shweta Purandare, secretary-general, ASCI, was not available for a comment.

In the future, ASCI would also be empowered to work with individual government regulators such as the Food Safety and Standards Authority of India (FSSAI) for ads pertaining to specific sectors.

The self-regulatory body, for instance, already has a memorandum of understanding with FSSAI for acting as its executive arm. It looks into complaints on misleading advertisements in the food and beverages sector.

ASCI is also working closely with the department of consumer affairs and handling complaints against misleading ads, received by the department on a portal it has set up.

This April, the regulator renewed its agreement with TAM Media Research to monitor print and television advertisements regularly. This move is expected to help the body improve the rate of action against errant advertisers. People in the know say is critical to its curbing misleading ads.

ASCI had first tied up with TAM Media in 2012 for three years. About 350 television and 10,000 print advertisements were monitored each week for compliance with the ASCI code.