Consumers Call for Change In Advertising Regulator Amid Growing Mistrust: LocalCircles

Consumers are advocating for a change in advertising regulators as their trust in ads continues to decline in an era marked by an overwhelming amount of digital content. They say that current regulations fall short in protecting them from misleading and deceptive marketing practices.

As many as 78% of consumers want the Central Consumer Protection Authority to take over the regulation of advertising from the Advertising Standards Council of India, according to a survey conducted by LocalCircles. The findings are based on 37,000 responses from 312 districts.

Over 73% have expressed concerns over misleading claims and inadequate standards in the advertising industry, leading to demands for greater transparency and accountability. They feel regulation of misleading ads can be made more effective by transitioning the responsibilities from the industry body ASCI to the CCPA. However, as many as 11% feel that ASCI is "already effective and the current self-regulation system should continue."

The survey showed that 25% of consumers have zero trust in advertisements, and at least 53% have low trust. As many as 84% indicated that they have come across at least a few advertisements endorsed by celebrities in the last 12 months, which they later found to be misleading. The survey showed that 52% have come across "several" of such misleading ads and 32% have come across "few of them."

"Misleading advertisements continue to be regulated through the industry body ASCI and complaints are also filed with Broadcast Seva, the Press Council of India and the National Consumer Helpline," according to LocalCircles.

LocalCircles will escalate the findings of this survey to the key stakeholders for action.

The survey comes at a time when India is planning to bring in a unified system to tackle consumer complaints against misleading ads, days after the Supreme Court pulled up the government citing inadequate action.

Recently, the Supreme Court mandated all companies to submit a self-declaration form before advertising any product. The apex court has also asked influencers and celebrities to endorse products with a sense of responsibility.

These actions take place against the backdrop of a surge in misleading advertisements during the pandemic, with numerous brands claiming to protect consumers from the Covid-19 virus or to enhance immunity. Misleading claims spanned a wide range of products, from mattresses and multivitamins to hand sanitisers and ready-made clothing, with many household brands contributing to consumer confusion. Additionally, this period saw the rise of digital influencers, many of whom promoted various products without clearly disclosing their sponsorships.

Ramdev-led Patanjali Ayurveda has drawn rebuke from the top court as misleading advertisements have triggered concerns about violations of consumer rights.

"With limited action from self-regulating body ASCI and the government, the misleading ads and influencer media have continued post-pandemic as well, leading to a significant reduction in consumers' trust in advertisements," according to LocalCircles.

The government’s plan for a unified mechanism is likely to be presented to the Supreme Court this week by the Ministry of Consumer Affairs.