The Advertising Standards Council of India (ASCI) has released its Half-Yearly Complaints Report for 2024-25, revealing critical vital information about advertising compliance. The report marks the challenges faced in regulating digital media. From April to September 2024, a staggering 98% of scrutinised ads required modifications. While compliance in traditional media remains high at 95%, digital platforms are proving to be more problematic.
Overview of Compliance Rates
Digital media accounted for 93% of all scrutinised ads. Of these, 2,087 ads were flagged for direct legal violations. Voluntary compliance among advertisers has increased to 80%. However, the sheer volume of digital advertisements complicates effective regulation.
Categories with Highest Violations
The report identified the top five categories with important code violations – 1. Real Estate (34%) 2. Illegal Betting (29%) 3. Healthcare (8%) 4. Personal Care (7%) 5. Food & Beverage (6%) Real estate ads frequently breached the MahaRERA Act, leading to penalties totalling Rs 88.90 lakh for 628 developers. Illegal betting ads, particularly on platforms like Instagram, also raised concerns.
Regulatory Challenges in Digital Media
Manisha Kapoor, ASCI Secretary General, noted the unique difficulties in regulating digital media. The vast number of ads and the fragmented nature of advertisers pose important hurdles. Many advertisers operate informally, lacking dedicated marketing or legal teams. The volume of campaigns released monthly adds to the complexity.
Role of Artificial Intelligence in Regulation
ASCI is exploring the use of artificial intelligence (AI) to enhance ad regulation. AI can help monitor large volumes of advertisements and identify those needing further review. The goal is to train AI on ASCI’s code to improve its understanding of complex advertising standards.
Monitoring and Complaint Resolution
ASCI’s proactive monitoring led to a 90% resolution rate for processed cases, with an average complaint resolution time of 18 days. Notably, 53% of violative ads were voluntarily modified or withdrawn, indicating improved compliance among advertisers.
Addressing Misleading Claims
The council also tackled misleading environmental claims, or “greenwashing.” All 100 ads reviewed required modifications, revealing unsupported eco-friendly claims in the home care sector. The total number of processed complaints decreased slightly compared to the previous year, as ASCI focused on high-impact violations for better consumer protection.
Questions for UPSC:
- Discuss the challenges faced by regulatory bodies in ensuring compliance in digital advertising.
- Critically examine the role of artificial intelligence in enhancing advertising standards and compliance.
- Explain the impact of misleading environmental claims on consumer trust and market practices.
- With suitable examples, discuss the significance of the MahaRERA Act in regulating the real estate sector in India.
Answer Hints:
1. Discuss the challenges faced by regulatory bodies in ensuring compliance in digital advertising.
- The vast number of digital ads makes monitoring difficult, with 93% of scrutinised ads being digital.
- Many advertisers operate informally, lacking dedicated teams for marketing or legal compliance.
- The dynamic nature of online advertising leads to frequent and numerous campaigns, complicating regulation.
- High rates of non-compliance, with 98% of scrutinised ads requiring modifications, indicate systemic issues.
- Digital platforms, such as social media, are often used for illegal activities like gambling, adding to regulatory challenges.
2. Critically examine the role of artificial intelligence in enhancing advertising standards and compliance.
- AI can process large volumes of ads quickly, identifying potential violations for further review.
- Training AI on ASCI’s advertising code aims to improve its understanding of complex standards.
- AI can facilitate proactive monitoring, potentially increasing compliance rates among advertisers.
- Using AI could streamline the complaint resolution process, reducing the average resolution time.
- However, reliance on AI necessitates careful oversight to ensure accuracy and fairness in regulation.
3. Explain the impact of misleading environmental claims on consumer trust and market practices.
- Misleading claims, known as “greenwashing,” undermine consumer trust in brands and products.
- All 100 ads reviewed for environmental claims required modifications, indicating widespread issues.
- Such practices can lead to regulatory scrutiny and potential penalties for companies involved.
- Consumer awareness of false claims can shift market practices towards more transparent advertising.
- Addressing misleading claims is crucial for maintaining integrity in the growing eco-conscious market.
4. With suitable examples, discuss the significance of the MahaRERA Act in regulating the real estate sector in India.
- The MahaRERA Act mandates transparency in real estate transactions, ensuring mandatory disclosures.
- 1,027 real estate ads were flagged for breaching the Act, denoting its importance in consumer protection.
- Penalties of Rs 88.90 lakh were imposed on 628 developers, demonstrating enforcement of compliance.
- The Act helps to prevent fraudulent practices and promotes accountability among developers.
- By regulating advertising, the MahaRERA Act enhances consumer confidence in the real estate market.
