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ASCI updates code, media companies must label paid posts on social handles
ASCI updates code, media companies must label paid posts on social handles

Time of India

time2 days ago

  • Business
  • Time of India

ASCI updates code, media companies must label paid posts on social handles

The Advertising Standards Council of India (ASCI) has introduced a new clause to its Code for Self-Regulation in Advertising , requiring media companies to clearly identify paid content on their social media handles. The move aims to stop advertisements or promotions from being perceived as editorial content, a growing concern in India's fast-changing digital ecosystem. Under the new Clause 1.8, part of Chapter 1 - Truthful and Honest Representation, any paid or sponsored post by a media company must carry a clear disclosure right at the start, so audiences know up front that it is promotional in nature. Acceptable labels include 'Advertisement,' 'Partnership,' 'Ad,' 'Free Gift,' 'Sponsored,' 'Platform disclosure tags' and 'Collaboration.' The Norms of Journalists Conduct also require newspapers to clearly distinguish advertisements from content. The change follows observations consumer complaints about misleading or undisclosed promotions, on platforms where editorial credibility is high. With digital media often serving as a primary news and information source, ASCI says transparency is essential to protect both audiences and media brands. Manisha Kapoor, chief executive officer and secretary general of ASCI, said, "Labelling sponsored content is crucial for several reasons. It builds trust and transparency with the audience, which appreciates knowing whether it's an endorsement or recommending something in exchange for compensation. Second, it helps to comply with the laws and guidelines, which may require one to disclose any material connection or relationship you have with a brand or product. Finally, it helps avoid potential penalties, fines or legal actions from regulators, who may accuse you of deceptive or unfair marketing practices. ASCI monitors such content closely to avoid any brand influence of misleading content by brands.' 'Several media outlets regularly post editorial content on their social media handles. Increasingly, we see that advertisements with no or poorly visible disclosures are making their way to such posts. To maintain the integrity and trust of media news and features, it is important that sponsored or promoted content is distinguished by means of upfront disclosures. This prevents such advertisements from misleading consumers about their true nature. Consumers have a right to know if they are dealing with sponsored or editorial content right at the beginning,' Kapoor added.

ASCI orders media to label paid posts, safeguard editorial integrity
ASCI orders media to label paid posts, safeguard editorial integrity

Economic Times

time2 days ago

  • Business
  • Economic Times

ASCI orders media to label paid posts, safeguard editorial integrity

The Advertising Standards Council of India (ASCI) has added a new clause to its Code for Self-Regulation in Advertising, making it mandatory for media companies to clearly identify paid content on their social media handles. The move aims to prevent advertisements or promotions from being mistaken for editorial content, a growing concern in India's rapidly evolving digital new Clause 1.8, introduced under Chapter 1 – Truthful and Honest Representation, mandates that any paid or sponsored post by a media company must carry a clear disclosure right at the beginning. This ensures audiences immediately know the content is promotional. Acceptable labels include 'Advertisement,' 'Partnership,' 'Ad,' 'Free Gift,' 'Sponsored,' 'Platform disclosure tags,' and 'Collaboration.' The Norms of Journalists Conduct also require newspapers to clearly distinguish advertisements from editorial change comes in response to consumer complaints about misleading or undisclosed promotions on platforms where editorial credibility is high. With digital media increasingly serving as a primary source of news and information, ASCI says transparency is vital to protect both audiences and media brands. Manisha Kapoor, CEO and Secretary General of ASCI, said: 'Labelling sponsored content is crucial for several reasons. It builds trust and transparency with the audience, which appreciates knowing whether it's an endorsement or recommending something in exchange for compensation. Second, it helps to comply with the laws and guidelines, which may require one to disclose any material connection or relationship you have with a brand or product. Finally, it helps avoid potential penalties, fines or legal actions from regulators, who may accuse you of deceptive or unfair marketing practices. ASCI monitors such content closely to avoid any brand influence of misleading content by brands.' She added: 'Several media outlets regularly post editorial content on their social media handles. Increasingly, we see that advertisements with no or poorly visible disclosures are making their way to such posts. To maintain the integrity and trust of media news and features, it is important that sponsored or promoted content is distinguished by means of upfront disclosures. This prevents such advertisements from misleading consumers about their true nature. Consumers have a right to know if they are dealing with sponsored or editorial content right at the beginning.'

Offshore betting and real estate top ad violations in ASCI's 2024-25 report
Offshore betting and real estate top ad violations in ASCI's 2024-25 report

Time of India

time28-05-2025

  • Business
  • Time of India

Offshore betting and real estate top ad violations in ASCI's 2024-25 report

Offshore betting and real estate emerged as the most non-compliant sectors in advertising during 2024-25, according to the Advertising Standards Council of India 's (ASCI) Annual Complaints Report. The self-regulatory body reviewed 9,599 complaints and examined 7,199 advertisements over the course of the year. Offshore betting accounted for 43.5% of all the violative ads last fiscal, followed by real estate at 24.9%. Together, these sectors made up more than two-thirds (68%) of total violations, the report said. They were joined by personal care (5.7%), healthcare (5.23%), and food and beverages (4.69%) as the top five violating sectors. ASCI monitors advertising violations across brands, platforms, and influencers, working closely with the Department of Consumer Affairs to promote truthful and lawful advertising. "This year has been one of meaningful collaboration," said Manisha Kapoor, CEO and secretary general of ASCI. "We expanded our efforts to address key areas such as offshore betting and real estate, which involve high-impact violations." Betting is illegal in India, and the Ministry of Information and Broadcasting (MIB) has directed all publishers to avoid carrying advertisements from offshore betting platforms. Industry-wide compliance with ASCI guidelines stood at 83%, with television and print media showing a higher adherence rate of 98%. Digital media accounted for 94.4% of the ads flagged for violations, while traditional media contributed a relatively small share. Influencer-related violations made up 14% of the total ads reviewed. The report noted that 79% of digital ad violations occurred on Meta platforms, followed by other websites, Google, property portals, and LinkedIn. ASCI reported a significant improvement in complaint resolution efficiency during 2024-25, with the average turnaround time reduced to 16 days-a 46% improvement over the previous year. This was largely driven by the higher proportion of uncontested claims and enhanced processing systems. Of the scrutinised ads, 98% required some form of modification. Notably, 59% of the investigated ads were uncontested and were either withdrawn or modified by advertisers. Most violations stemmed from misleading claims due to lack of honest representation and promotion of harmful products or depictions of dangerous situations, the report said. A total of 3,347 ads fell under categories that are legally prohibited from advertising, including offshore betting, alcohol branding, and unauthorised forex trading apps, which are banned by the Reserve Bank of India. Additionally, 233 ads potentially violated the Drugs and Magic Remedies Act. ASCI reviewed 1,015 influencer ads during the year, with 98% requiring modifications. On LinkedIn alone, 121 violations were identified, largely due to professionals failing to disclose paid partnerships.

Ads for banned products up 24% in FY25; offshore betting dominates: ASCI
Ads for banned products up 24% in FY25; offshore betting dominates: ASCI

Business Standard

time28-05-2025

  • Business
  • Business Standard

Ads for banned products up 24% in FY25; offshore betting dominates: ASCI

The number of advertisements (ads) for products or services prohibited by law has increased by 23.6 per cent to 3,347 in 2024-25, and a large chunk of the ads was from offshore, illegal betting platforms, according to the Annual Complaints Report released by the Advertising Standards Council of India (ASCI). Ads for products or services prohibited by law stood at 2,707 in the 2023-24 period. Out of these 3,347 ads, 3,081 were from offshore, illegal betting platforms. These 3,081 ads included 318 that pertained to influencers promoting such platforms. On the other hand, 233 ads potentially violated the Drugs and Magic Remedies Act; 21 promoted alcohol brands; and 12 ads promoted unauthorised forex trading apps banned by the Reserve Bank of India (RBI). ASCI has been escalating these ads that are prohibited by law to regulators for appropriate action, it said in its report. With this, offshore betting and realty sectors emerge as the most violative ones as ads in these segments flagged by consumers rose to 83 per cent in the 2024-25 period. Overall, ASCI looked into 9,599 complaints and scrutinised 7,199 as. In this, 98 per cent of scrutinised ads required some form of modification. The offshore betting segment contributed 43 per cent of cases while the realty sector accounted for 24.9 per cent of cases, ASCI said in a release. 'This year has been one of meaningful collaborations as we expanded our efforts to address critical areas like offshore betting or gambling and real estate violations, which are high-impact violations,' said Manisha Kapoor, chief executive officer (CEO) and secretary general of ASCI, in a statement. The realty sector was followed by ads in the personal-care segment, contributing 5.7 per cent of cases, healthcare at 5.23 per cent, and food and beverage segment accounting for 4.69 per cent of the cases. Additionally, influencer violations contributed to 14 per cent of the ads processed, the report added. 'The rise in public complaints — and more importantly, how many advertisers chose to quietly comply — says a lot about where trust still lives,' said Partha Sinha, chairman, ASCI. Out of the 1,015 influencer ads investigated by ASCI, the ones in the illegal betting segment were highest at 31.4 per cent, followed by fashion and lifestyle at 16.2 per cent. 'ASCI's continued efforts have resulted in 83 per cent overall compliance, with TV and print showing near-perfect adherence (of ads) at 98 per cent,' the release said.

Advertising body says opinion trading poses financial risk; seeks regulatory clarity
Advertising body says opinion trading poses financial risk; seeks regulatory clarity

Time of India

time21-05-2025

  • Business
  • Time of India

Advertising body says opinion trading poses financial risk; seeks regulatory clarity

HighlightsThe Advertising Standards Council of India has warned that opinion trading poses financial risks and is seeking regulatory clarity on the status of such activities. The self-regulatory body stated that it may need to formulate advertising guidelines if opinion trading is legally permitted, as it has encountered advertising from global and local players promoting these platforms. Opinion trading platforms in India reportedly have over 50 million users, with annual transactions exceeding Rs 50,000 crore, raising concerns about their structure resembling betting and the accompanying advertising making exaggerated claims. The Advertising Standards Council of India ( ASCI ) on Tuesday warned that ' opinion trading ' poses financial risks, and sought a regulatory clarity on the status of such activities. The self-regulatory body for the advertising industry said it will have to formulate advertising guidelines if opinion trading -- in which users make monetary bets on binary outcomes of real-world events -- is legally permitted. In a 'white paper' that has come within a month of capital markets regulator Sebi saying opinion trading does not fall in its regulatory purview, ASCI said it has come across advertising from global and local players and influencers around opinion trading. "...analysis of such posts reveals that some of these appear to be pure speculation and can pose financial risks - especially for young and financially vulnerable groups. ASCI has called for regulatory clarity on the status of such activities in India," the body said. If advertising of such activities is not permitted then all stakeholders need to establish mechanisms to monitor any violations of the law, the ASCI said. The white paper spotlights the current advertising practices and applicability of existing laws, as well as examines regulatory approaches to similar services in other countries. ASCI pointed out that as per the National Initiative for Consumer Interest (NICI), opinion trading platforms have over 50 million users and transactions exceed Rs 50,000 crore annually. Globally, opinion trading is regulated either as a financial instrument, or under gambling laws, ASCI said. "Opinion trading platforms raise serious concerns as their structure and mechanics closely resemble betting in some instances, and can expose consumers to significant financial risk. The advertising that accompanies these platforms often heightens the risk, with exaggerated claims of easy winnings and false assurances of reliability," the body's chief executive and secretary general Manisha Kapoor said.

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