Surrogate Advertisements

Why in the News?

The Ministry of Health and Family Welfare has urged the Sports Authority of India and the Board of Control for Cricket in India (BCCI) to take steps to prevent surrogate advertisements for tobacco and alcohol products by sportspersons. This includes measures like signing anti-tobacco declarations and refraining from promoting such products during events.

What Are Surrogate Advertisements?

• Definition: Surrogate advertisements are substitute ads for products that cannot be directly promoted due to legal restrictions (e.g., tobacco and alcohol).
• Characteristics:
• Often involve misleading representations or conceal essential information, leading to unfair trade practices.
• Used in popular sporting events to enhance brand recall, which can indirectly boost sales of prohibited items.
• Examples include advertising non-tobacco products that are linked to tobacco brands, like promoting pan masala during cricket matches.

Legal Framework

• Cable Television Networks (Regulation) Act, 1995: Prohibits direct and indirect promotion of tobacco and alcohol.
• Cigarettes and Other Tobacco Products Act (COTPA), 2003: Enforces bans on advertising tobacco and related products.
• Consumer Protection Act, 2019: Defines misleading advertisements and includes provisions against false or misleading claims.
• CCPA Guidelines: For the first time, these guidelines explicitly defined surrogate advertisements.
• ASCI Code: Allows surrogate advertising for brand extensions, provided the scale of advertisement is proportionate to the unrestricted product’s production and sales.

Implications

Surrogate advertising poses significant challenges in regulating the promotion of harmful products. The use of celebrities and aspirational imagery makes it difficult to control the influence of these ads, especially in high-visibility platforms like sports events.

Implications of Surrogate Advertising

1. Consumers

• Undermines Consumer Rights: Surrogate advertising engages in unfair trade practices, violating consumers' rights to informed choice and transparency.
• Misleading Decision-Making: The aspirational content in these ads misleads vulnerable groups, including youth and economically disadvantaged individuals, encouraging unhealthy consumption behaviors.

2. Public Health

• Health Hazards: Surrogate advertising makes tobacco and alcohol products more appealing, particularly to youth, potentially leading to addiction and long-term health issues.
• An ICMR study found that surrogate smokeless tobacco brands accounted for 41.3% of total advertisements during the ICC Men's Cricket World Cup 2023.

3. Companies

• Profit vs. Efficacy: While surrogate ads boost brand visibility and sales, they perpetuate unfair trade practices. A 2019 survey indicated that over 70% of consumers were influenced by these advertisements.
• Revenue for Stakeholders: Digital streaming platforms, BCCI, and state associations benefit financially from surrogate ads, with brands paying substantial amounts for advertising spots (e.g., ₹60 lakh for a 10-second spot).

4. Ethical Implications

• Lack of Transparency: Companies exploit legal loopholes, diminishing accountability and promoting prohibited products through creative marketing.
• Social Influence: Strategies like celebrity endorsements create a "nudge" effect, subtly encouraging tobacco and alcohol consumption.

Issues in Regulation of Surrogate Advertisements

• Legislative Loopholes: Weak laws with vague definitions allow for broad interpretation and exploitation by brands, leading to ineffective regulation.
• Unethical Practices: Companies may engage in unethical behavior or reduce prices to increase market share, which could exacerbate consumption rates.
• Inadequate Punishments: Current penalties, often limited to corrective advertisements, lack proportionality and fail to deter misconduct.
• Economic Considerations: High taxes on tobacco and alcohol products contribute significantly to job creation and state revenue, complicating regulatory efforts.

Way Forward

• Stakeholder Consultations: Meetings between government officials and organizations like ASCI can identify steps to clarify distinctions between brand extensions and prohibited products, ensuring ads do not reference or resemble restricted goods.
• Enhancing Regulations:
• COTPA and ASCI: Clearly define the ban on surrogate advertising, extending it to all media, events, and sponsorships.
• Digital Media Regulations: Expand oversight to digital platforms, starting with sectors like sports betting and health-related products.
• Accountability Measures: Increase penalties and hold media corporations accountable to promote responsible advertising practices.
• Regulatory Insights: Implement regular audits, real-time monitoring, and strengthen enforcement mechanisms to ensure compliance.
• Public Awareness Campaigns: Launch Information, Education, and Communication (IEC) initiatives to educate the public about the implications of surrogate advertising.

Conclusion

In the age of advanced technology, advertisements wield significant influence over consumer behavior. Ensuring the legitimacy and transparency of these claims is crucial for fostering a healthier society and safeguarding consumer rights.