Understanding the Self-Declaration Certificate Requirements for Advertisers in India

In a landmark move to bolster consumer protection and enhance transparency in advertising, the Supreme Court of India has mandated a new requirement for advertisers. Effective from June 18, 2024, all advertisers and advertising agencies must submit a “Self-Declaration Certificate” before publishing or broadcasting any advertisement. This directive stems from a significant case, Indian Medical Association vs Union of India, which underscores the critical need for truthful advertising. This blog delves into the incident leading to this mandate, the law itself, and the implications for advertisers and consumers alike.

Background and Incident

Overview of the Incident

On May 7, 2024, the Supreme Court issued a directive in the case of Indian Medical Association vs Union of India. The case highlighted the rampant issue of misleading advertisements in the media, particularly those that could adversely affect public health and consumer rights. The court recognized that existing mechanisms were insufficient to curb misleading claims, leading to widespread consumer deception. The directive was seen as a necessary step to ensure the protection of consumers through ensuring that advertisements are truthful and adhere to regulatory standards.

Supreme Court’s Directive

The directive requires all advertisers to submit a Self-Declaration Certificate before their advertisements can be published or broadcasted. This move is grounded in Article 32 of the Constitution of India, which ensures the enforcement of fundamental rights, including the right to health. The court emphasized that the right to health encompasses the consumer’s right to be informed about the quality of products and services they are exposed to. By invoking this article, the court aimed to establish a robust mechanism to ensure compliance with advertising guidelines.

The New Law and Its Provisions

Introduction to the Law

Following the Supreme Court’s decision, the Ministry of Information and Broadcasting (MIB) swiftly moved to implement the directive. The MIB introduced a feature on its Broadcast Seva Portal for TV and radio advertisements and on the Press Council of India’s portal for print and digital advertisements. These portals facilitate the submission and verification of the Self-Declaration Certificates, ensuring that all new advertisements comply with the mandate.

Self-Declaration Certificate Requirements

The Self-Declaration Certificate serves as a declaration that the advertisement:

• Does not contain misleading claims.
• Complies with all relevant regulatory guidelines, including Rule 7 of the Cable Television Networks Rules, 1994, and the Norms of Journalistic Conduct of the Press Council of India.

The mandate requires the advertiser or advertising agency to assign an authorized representative to sign the certificate. Specific details to be included in the certificate are:

1. Product/service being advertised.
2. Advertisement title.
3. Brief description of the advertisement (100-200 words) highlighting specific features or claims.
4. Full script of the advertisement (in a PDF file).
5. URL of advertisement audio/video for TV/radio/internet advertisements, or PDF of the actual advertisement for print/static internet advertisements.
6. Proposed date of the first broadcast/publication of the advertisement.

Submission Process

Registration and Submission Portals

The Ministry of Information and Broadcasting (MIB) and the Press Council of India (PCI) have set up specific portals for the submission of the Self-Declaration Certificate. The portals facilitate the registration and submission process, ensuring that all advertisements are scrutinized before being aired or published.

• Broadcast Seva Portal: For television and radio advertisements.
• Press Council of India Portal: For print and digital media advertisements.

Steps to Submit the Self-Declaration Certificate

A. For Television and Radio Advertisements

1. Registration:
   • Visit the Broadcast Seva Portal.
   • Register as an advertiser or advertising agency by providing necessary details such as organization name, contact information, and authorized representative details.

2. Filling the Certificate:
   • Log in to the portal using your credentials.
   • Navigate to the Self-Declaration Certificate submission section.
   • Fill in the details required:
     • Product/service being advertised.
     • Advertisement title.
     • A brief description of the advertisement (100-200 words), highlighting specific features or claims.
     • Full script of the advertisement (in a PDF file).
     • URL of the advertisement audio/video.
     • Proposed date of the first broadcast.

3. Submission:
   • Ensure all information is accurate and complete.
   • Submit the certificate and retain proof of submission for records.

B. For Print and Digital Media Advertisements

1. Registration:
   • Check the Self Declaration Portal Guidelines
   • Visit the Press Council of India Portal.
   • Register with the necessary details as an advertiser or advertising agency.

2. Filling the Certificate:
   • Log in to the portal.
   • Navigate to the Self-Declaration Certificate submission section.
   • Enter the required details similar to those for television and radio advertisements:
     • Product/service being advertised.
     • Advertisement title.
     • Brief description (100-200 words).
     • Full script of the advertisement (in a PDF file).
     • PDF of the actual advertisement for print/static internet advertisements.
     • Proposed date of the first publication.

3. Submission:
   • Verify the information.
   • Submit the certificate and keep proof of submission for records.

Aftereffects and Implications

Impact on Advertisers

The new requirement poses significant implications for advertisers and advertising agencies. While the directive aims to enhance consumer protection, it introduces a layer of complexity in the advertising process. Advertisers must now ensure that their claims are meticulously vetted to avoid any misleading information. This involves additional time, effort, and possibly cost, to comply with the new requirements.

Consumer Protection and Transparency

The primary benefit of this directive is the enhancement of transparency in advertising. Consumers can now be assured that the advertisements they encounter have been scrutinized for misleading claims. This move aligns with Rule 7 of the Cable Television Networks Rules, 1994, which sets standards for advertisements to ensure they do not mislead or exploit viewers.

Industry Reactions and Comments

While the initiative aims to enhance consumer protection and ensure transparency, it also presents several challenges for advertisers and advertising agencies. This section explores various industry perspectives on the mandate.

Positive Reception and Support

Many industry leaders recognize the benefits of the new mandate. Yasin Hamidani, Director of Media Care Brand Solutions, highlights the potential for greater transparency in the advertising industry. He notes that the self-declaration mandate can lead to more responsible advertising practices, ensuring that advertisements are truthful, accurate, and compliant with regulations. This move is seen as a step towards building consumer trust and protecting against deceptive advertising practices.

Enhancing Consumer Trust

Nikhil Sethi, Partner and National Leader of FMCG and Lead, Customer CoE at KPMG in India, emphasizes the importance of transparent communication combined with ethical advertising. He believes that avoiding exaggerated claims and substantiating messages with verifiable data will strengthen brand credibility. This approach helps build long-term relationships with consumers, encouraging loyalty and positive brand perception.

Practical Implementation Challenges

However, several industry experts have raised concerns about the practical implementation of the directive. Ambika Sharma, Founder and MD of Pulp Strategy, acknowledges the directive’s benefits for consumer interests but points out logistical challenges, especially in digital advertising. Unlike television or radio campaigns, which have limited creatives and launch timings, digital advertising involves numerous simultaneous creative tests for performance marketing campaigns. This complexity raises questions about the number of declarations required and the administrative burden involved.

Sharma further highlights that the certification submission process is time-consuming. The representative signing the declaration must provide detailed information, including their mobile number, email address, a description of the product or service, the full script of the ad, a link to the audio/visual element or PDF for print ads, and the proposed date of broadcast or publication. This extensive process can delay the launch of advertisements and increase administrative costs, particularly for smaller businesses.

Economic Implications

The mandate’s economic impact is another area of concern. Mustafa Surka, Partner in Risk Advisory Services at KPMG in India, notes that the regulation requires organizations to invest in verifying the claims of their external communication. Practices such as advertising reviews prior to publishing and preventive risk assessments to avoid potential backlash will now be embedded in the brand strategy of an organization. While these practices promote ethical advertising, they also add to the operational costs and complexity of marketing strategies.

Green Credentials and Ethical Practices

Namrata Rana, Partner and National Head of ESG at KPMG in India, emphasizes the need for transparency in claims related to green credentials. She points out that brands often associate themselves with causes, but these claims may not always be trustworthy. For instance, claims that a product is green, net-zero, plastic neutral, water-positive, or has a positive social impact must be verifiable. Building brand trust requires clarity, responsibility, and accurate advertising. Brands should ensure their advertisements reflect true product benefits and ethical practices.

Skepticism and Concerns

Despite the positive aspects, there is skepticism about the effectiveness of self-declaration in preventing unethical advertising behavior. Hamidani notes that the mandate relies on the honesty of advertisers and agencies. There may also be concerns about the increased administrative burden and costs for compliance, particularly for smaller businesses. This could lead to challenges in maintaining a level playing field in the industry.

Conclusion

The introduction of the Self-Declaration Certificate for advertisements is an important step to ensure transparency and consumer protection in the advertising industry. The Supreme Court’s directive, supported by the Ministry of Information and Broadcasting, aims to create a more accountable and responsible advertising environment.

However, the implementation of this directive poses challenges. Advertisers and advertising agencies must now navigate a more complex landscape, ensuring their advertisements meet stringent regulatory standards. While the intention behind the directive is commendable, its practical implications must be carefully managed to avoid stifling legitimate business activities.

As the industry adapts to these new requirements, it is crucial for the Ministry of Information and Broadcasting and other relevant authorities to address the concerns raised by stakeholders. Providing clear guidelines, simplifying the submission process, and ensuring timely responses can help mitigate potential disruptions and support the successful implementation of this important directive.

In light of these changes, advertisers and consumers alike must stay informed about the evolving landscape of advertising regulations. Advertisers should ensure compliance with the new requirements to avoid potential penalties, while consumers can look forward to a more transparent and truthful advertising environment.

Feedback and comments on this blog are welcome as we navigate this significant change in the advertising industry.

References

• Indian Medical Association vs Union of India – Case File
• Rule 7 of the Cable Television Networks Rules, 1994
• Self-Declaration Portal Guidelines: CBC Guidelines
• Press Release from the Ministry of Information & Broadcasting: PIB Press Release