Ad regulator gets more teeth, will act against misleading ads

To act as an executive arm of the govt when dealing with misleading ads

In a move that will raise the profile and heft of the Advertising Standards Council of India (ASCI), the ad regulator will now act as an executive arm of the government, working on complaints received on an exclusive website against any misleading ad in the country.

This website will be launched on Wednesday by the department of consumer affairs, allowing consumers to complain about any ad appearing in any medium across any category.

Besides addressing the issue of misleading ads head-on, the initiative will also, more importantly, signal the government's direct involvement in the process of redressing grievances and complaints on misleading ads, so far managed by ASCI through its channels only.

The government, according to persons, will change the Consumer Protection Act, 1986, by including a chapter on misleading ads. This was something that consumer rights activists and stakeholders had been lobbying for a long time in their battle against misleading ads, a menace that has only grown even as the ad sector, which today is closer to Rs 40,000 crore, has swelled in size in the country.

ASCI will step in the moment a complaint is received against an ad, writing to the advertiser to modify it based on guidelines prescribed by it. If the advertiser does not comply, the government will step in, initiating action against the company after discussing it among members of a special task-force comprising regulators from various ministries, including health, education and consumer affairs.

While ASCI officials could not be immediately reached for their comments, this approach is expected to act as a strong deterrent against errant advertisers, who so far took the ad regulator for granted.

ASCI will provide a monthly report on the status of complaints to the government, even as the task-force meets regularly to discuss difficult cases and issues.

Increasing might
The current development comes even as ASCI pulled up its socks — moving from a monthly, fortnightly to finally a weekly cycle of addressing complaints.

Monitoring levels have improved with the National Advertising Monitoring Service, a tie-up with TAM, in 2012, that scans over 10,000 print ads and over 350 television ads each week. ASCI, through awareness drives, has been asking consumers to raise relevant complaints more often.

"Those who wish to complain can send an e-mail, post, call or log on to our online complaint system," Shweta Purandare, secretary-general, ASCI, had said in an earlier conversation with the Business Standard. Apart from consumers, other entities who raise complaints are competitors, social activists and ASCI itself.

The number of ads flagged up has jumped over ten times from about 175 three years ago to 1,937 in the financial year ended March 2014, Purandare had said. "Of 1,937 ads complained against last year, 750 were from consumers. This year, this number could jump if one goes by initial trends. Already 500 complaints received against ads in the first half of the current financial year were from consumers," she had said.

LET’S HAVE FUN WITH NUMBERS

• 10 times Amount by which the number of ads flagged up has jumped from more than 175 three years ago to 1,937 in the financial year ended March 2014
   
• Of 1,937 ads complained against last year, 750 were from consumers, Advertising Standards Council of India (ASCI) said
   
• 500 complaints received against ads in the first half of the current financial year were from consumers, ASCI said
   
• 90% Compliance (cooperation from advertisers in modifying ads complained against) now from 50-60 per cent a few years ago, say sources
   
• Apart from consumers, others who complain are competitors, social activists, and ASCI itself