India’s Surrogate Ad Rules Stalled by Legal Gray Areas

New guidelines targeting surrogate advertisements for alcohol and tobacco in India face major delays. The rules were drafted over a year ago by a government panel. They are now stuck due to legal and enforcement hurdles.The Central Consumer Protection Authority (CCPA) formed the committee in March 2024. According to Mint, a draft report was finalized in July 2024. However, the guidelines have not been implemented.

Existing Law Limits Government’s Enforcement Power

The current Consumer Protection Act is a key obstacle. It does not explicitly define surrogate advertising as a standalone offence. The law only allows action against ads that are misleading about the specific product being promoted.This creates a significant loophole. Companies advertise legal products like soda or music CDs under a banned brand’s name. Since the advertised product itself is not misleading, enforcement becomes legally fragile. The CCPA’s powers are limited to proving direct deception.According to sources, the consumer affairs ministry is examining its options. One view is that executive action may not be enough. Binding rules might require stronger legal backing to withstand court challenges.

Industry Calls for Self-Regulation Amid Growth

The alcoholic beverage industry is expanding rapidly. Crisil Ratings projects 8-10% revenue growth this fiscal year. This growth increases the urgency for clear rules, says industry executives.Some advocate for a voluntary, self-regulatory approach. Vinod Giri of the Brewers Association of India suggests a government advisory. He argues voluntary codes are often well-respected by companies and easier to implement.Health experts express serious concern. Dr. Anand Vishal highlights diseases linked to alcohol and tobacco use. He warns that surrogate and “soft” digital ads lower harm awareness, especially among youth.Consumer advocates point to fragmented regulation as the core problem. Ashim Sanyal of Consumer Voice notes alcohol and tobacco are governed by different state and central laws. The CCPA cannot easily override these regimes with guidelines alone.

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The path to regulating surrogate advertising in India remains clouded. Legal definitions and divided oversight continue to delay action. Until these gaps are fixed, surrogate promotions are likely to persist.

Info at your fingertips

Q1: What is surrogate advertising?

It is the indirect promotion of products whose direct ads are banned, like alcohol. Companies advertise a legal product, like soda or merchandise, using the banned brand’s name and imagery to build recall.

Q2: Which products commonly use surrogate ads in India?

Alcohol and tobacco brands are the most common. They promote items like packaged water, music CDs, glassware, and soda. They also sponsor concerts and festivals to target young audiences.

Q3: What penalties exist for misleading ads currently?

Under the Consumer Protection Act, penalties can reach ₹10 lakh and two years imprisonment for first offenses. Fines can go up to ₹50 lakh and five years in jail for subsequent violations.

Q4: Has the CCPA taken any action so far?

Yes. Reports indicate notices were sent to 13 companies in the alcohol, tobacco, and pan masala sectors. As of now, no financial penalties have been imposed in these surrogate advertising cases.

Q5: Why is it so hard to stop these advertisements?

The main hurdle is legal. The advertised product, like bottled water, is legal itself. Proving the intent to indirectly promote a prohibited product like alcohol is very difficult under current consumer law.

Trusted Sources: Mint, Reuters, The Times of India, Crisil Ratings.