India’s Highest Court Directs Mandatory Self-Declaration Certificate ( SDC) for All Indian Advertisers

 

Indian advertisers and Advertising Agencies are now subject to Self-Disciplinary Measures. India’s Highest Court now requires Advertisers to upload a Self-Declaration Certificate(SDC) before their campaigns go live.

Indian Supreme Court passed an order on May 7, 2024, requiring Indian advertising agencies and direct advertisers to generate a self-declaration certificate (SDC) before publishing/ broadcasting new ads or ad campaigns on conventional and digital media platforms.

The Supreme Court intended to prevent ads or ad campaigns that make misleading claims and provide misleading information, taking consumers and citizens of the country for a ride.

To curb misleading ads, the Central Consumer Protection Authority (CCPA) on June 9 notified Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022.

Although we have had multiple acts protecting the more considerable interest of consumers, such as the Consumer Protection Act 1986, Contract Act 1982, Sale of Goods Act 1932, Essential Commodities Act 1955, Agriculture Produce Act 1937, Prevention of Food Adulteration Act 1954, Standards of weights and measures Act 1976, Trade Mark Act 1999, Competition Act 2002, and the Bureau of Indian Standard Act 1986, the highest court must have realized the necessity for having a more defined and robust regulation protecting the interest of consumers from misleading claims and information by the brands or business in today’s competitive market place.

Honorable Supreme Court also directed all concerns that henceforth, no paid advertisement would be permitted to run on any media (both conventional and digital) platform without uploading the declaration (SDC). Check out the proposed Guidelines on SDC Here.

How it all Started?

The “Self-Declaration mandate” is presumed to be a direct fallout of the Supreme Court verdict that found Patanjali Ayurveda’s misleading claim in their advertising campaign – a company owned by Baba Ramdev.

During the year 23 -24, besides Patanjali Ayurveda, there were a few other businesses, such as Honasa Consumer Ltd (Personal care brand), Health Kart, Unacademy, First Cry ( Infant brand), who violated the norms, noted ASCI ( Advertising Standard Council of India),

ASCI also stated that the other violators included Urbanic’s parent company, Maysquare Lifestyle Pvt. Ltd, the leading women’s fashion retailing platform, Rummy24, run by Ability Games, and makeup brand Renee Cosmetics.

NEWS SOURCE – MINT dated May 22nd 2024

Ministry Of Information and Broadcast (MIB) initiative in Compliance with Supreme Court Directive

To facilitate the process, the Ministry (MIB) has added new features to its Broadcast Seva portal, primarily catering to TV and Radio commercials. On the other hand, MIB’s Press Council of India portal will cater to advertisers in the Print and Digital segments. Check out the MIB Press Release to this effect.

As an advertiser, you can access the portal, complete the registration/log-in formalities, and submit the self-declaration certificate (SDC) duly signed by an authorized representative. You can also review the guidelines for self-declaration, uploaded on the website of the Central Bureau of Communication, which is self-explanatory.

The MIB press release confirms the activation of the portal to SDC uploading on June 4, 2024. It directs advertisers and advertising agencies to obtain the self-declaration certificate for all new advertisements that will be issued/telecast/aired/published on or after June 18, 2024.

News Source – MIB Press Release dated June 3

SDC Implications and Implementations – The Hard Facts

If any advertiser, be it a large corporation, advertising/ marketing agency, startup, SME, or individual business owner, intends to run advertisements to promote their business on any media platform, they must submit an SDC without fail. In India, where a significant percentage of small unorganized sector companies exist, the SDC stipulation may hinder their business activity.

Indian Media Bodies Responses on SDC

Following the SC ruling and MIB directives, APEX bodies and associations from the Indian Media industry have petitioned the Ministry of Information and Broadcast to hold off on implementing SDC until the detailed operational procedures are in place.

They include the likes of the Indian Broadcasting and Digital Foundation (IBDF), the Indian Society of Advertisers (ISA), and the Advertising Agencies Association of India (AAAI)

Report Source “The Economic Times “dated June 21 24.

The Internet and Mobile Association of India (IAMAI) has also requested the Supreme Court to reconsider new regulations.

Concerns about SDC – Advertisers may need More Clarification and Support

Indian marketers have already expressed concerns about the consequences of such a sudden and wide-ended directive. The “Internet” is too vast, comprising millions of users and platforms. The certification process may require more work in the automated and vast digital advertising space.

The authorities may need to reexamine the SDC and provide specific guidelines with user-friendly technology/ training support for advertisers to help them adopt the new system.

What does SDC say about global E-Commerce Business?

Today, many global businesses and brands from overseas markets target Indian customers through digital marketing platforms. For example, if an advertisement is released on any digital platform by an E-commerce company that only ships its products in India, is it required to submit a certificate, too, even though it has no physical operation in India? They would be less likely to be aware of this requirement. Therefore, the latest SDC policy overlooks the global affairs of internet marketing and requires addressing the subject.

The newly laid-down, time-consuming digital procedures, likely technology glitches of the stated portals, and substantial online advertisers’ traffic to register their cases may cause an inordinate delay in the marketing campaign execution.

It may disrupt the brands’ overall business and market strategies and ultimately affect the company. The concerned authorities (like MIB and ASCI) may have to have powerful nodal bodies, owning the accountability to streamline the SDC implementation and address the grievances of the various parties who cannot get into the new system.

Conclusions

The intention behind SDC’s mission is commendable, as it strives to uphold consumer rights. However, its smooth implementation at ground zero may raise concerns due to several factors discussed above, and it should never unduly burden any advertiser.

The authorities must review the process periodically and bring improvement and efficiency into the new system, which is the least Indian marketers and business enterprises look for. Addressing these concerns will help achieve a balanced approach that protects Indian consumers without stifling economic activity.

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Utpal is a seasoned marketing writer, blogger, and solopreneur specializing in copy and content writing. With over six years of experience, I have successfully operated as a freelancer catering to diverse clients and agencies. I write on multiple domains in most digital content formats (long and short). I also do off-page writing, such as press releases, news articles, etc.

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