As per the guidelines for advertisements refers to an indirect advertisement for products or services which are harmful for both health and society but are still advertised in disguise of other products because of laws restricting such advertisements. For years regulated products like cigrrates and alcohol are fairly advertised in close category products such as club sodas and mineral water in cases of alcohol and music CDs or playing cards for cigarettes. Hence whenever there is mention of that masked brand, people start to associate it with its main product (the alcohol or cigarette). For instance in India, Bacardi Blast music CDs, Bagpiper Club Soda or Officers’ Choice playing cards.
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What are surrogate advertisements?
The Center previously in the year 2021(upon modifying The Surrogate Advertisements Prohibition Bill of 2016), released stringent rules to clamp down on surrogate advertising of tobacco and liquor as per the orders launched by The Advertising Standards Council of India (ASCI) by Manisha Kapoor, the secretary general of ASCI as told by The Times of India, still there has been a continuous extension of such brands in the market destroying the potential of common people, especially children and the youth, to be efficient in order to prosper our country’s economy. But unfortunately these laws were partial against showcasing the products on social platform because of economical advantages. As per consultations with the government, Maisha Kapoor informed that fresh norms related to checking new launches related to such products. Such norms are, no extensions of liquor and tobacco brands that have been launched but not completed two years in the market will need to achieve a net sales turnover of Rs 20 lakh per month from launch. Surrogate advertising of a company will only be allowed to such a company who is in the market for more than two years and the sales turnover of its product have exceeded Rs. 5 crore per year nationally or Rs.1 crore per annum if its limit is within the state. Also, other than being registered with government authorities such as GST, FSSAI or FDA, the brand extension business needs to be audited by independent organizations such as Nielsen IQ, Cognizant or Wipro.
https://164.100.47.4/billstexts/rsbilltexts/AsIntroduced/surogat%2010317-E.pdf
(THE SURROGATE ADVERTISEMENTS (PROHIBITION) BILL, 2016)
Fresh guidelines for advertisements which are false, misleading and surrogative
Thus, the Center upon keeping in view the acuteness and vulnerability of children and severe impact announcements make on the youngish minds formerly again this time on Friday, 9th released fresh guidelines for Prevention of Misleading Advertisements and Signatures for deceiving announcements, 2022, which prohibits surrogate advertising and prescribes conditions for bait announcements and commercials targeting children.
The CCPA has been established under section 10 of the Consumer Protection Act, 2019 for regulating matters relating to violation of the rights of the consumers, illegal trade practices and false or deceiving announcements which are prejudicial to the interests of public and consumers and to promote, cover and apply the rights of consumers as a class.
In exercise of the powers conferred by section 18 of the Consumer Protection Act, 2019, to CCPA, the Guidelines were notified
Deceiving announcement has formerly been defined under section 2( 28) of the Consumer Protection Act, 2019.
The present guidelines define “ bait advertising ”, “ surrogate announcement ” and easily give what constitutes “ free claim announcements ”.
Rohit Kumar Singh, the consumer affairs clerk and the fresh clerk, Nidhi Khare, released these guidelines on 9th June, 2022 at a press conference. Also, Khare said the guidelines will be completely in force to “ all announcements anyhow of form, format or medium. ” As said by the Central, several preventative vittles have now been laid down on announcements targeting children. Guidelines prohibit announcements from exaggerating the features of product or service in such a manner as to lead children to have unrealistic prospects of similar product or service and claim any health or nutritive claims or benefits without being adequately and scientifically proved by an honored body. Guidelines say that announcements targeting children shall not feature any personalities from the field of sports, music or cinema for products which under any law require a health warning for similar announcements or can not be bought by children.
Disclaimers in announcements play a pivotal part from consumer perspective since, in a way it limits the responsibility of the company. Thus, guidelines stipulate that disclaimer shall not essay to hide the factual and real information with respect to any claim made in a similar announcement. The elision or absence of which is likely to make the announcement deceptive or conceal its marketable intent and shall not essay to correct a deceiving claim made in an announcement. Further, it provides that, a disclaimer shall be in the same language as the claim made in the announcement and the fountain used in a disclaimer shall be the same as that used in the claim.
These guidelines will be applicable to a manufacturer, service provider or dealer whose goods, product or service is the subject of an announcement, or to an advertising agency or endorser whose service is available for the announcement of similar goods, product or service. Similar guidelines aim to cover consumer’s interest through bringing in further translucency and clarity in the way announcements are being published, so that consumers are able to make informed decisions based on the facts rather than false narratives and exaggerations.
Also as per the guidelines of surrogate advertisement for goods or services, it states, “No surrogate advertisement or indirect advertisement shall be made for goods or services whose advertising is otherwise prohibited or restricted by law, by circumventing such prohibition or restriction and portraying it to be an advertisement for other goods or services, the advertising of which is not prohibited or restricted by law.”
Penalties for violating the Guidelines are also clearly outlined. CCPA can impose a penalty of up to 10 lakh rupees on manufacturers, advertisers and endorsers for any misleading advertisements. For subsequent contraventions, CCPA may impose a penalty of up to 50 lakh rupees. The Authority can prohibit the endorser of a misleading advertisement from making any endorsement for up to 1 year and for subsequent contravention, prohibition can extend up to 3 years.
