Ethical,social and legal aspect of advertising

Ethical, Social and Legal
Aspect of Advertising
Presented by Dr. Swati Yadav

Learning Objectives
 The main objective of this lesson is to understand the ethics in Advertising.
 It also deals with social criticisms and responsibility of Advertising

Advertising
 Advertising plays an important role by creating primary demand for the
product or service and its usage rate thus increase in customers.
 It not only stimulates the product distribution but also builds brand
preferences and loyalty.
 It also reduces the time between the purchases & persuades the consumers to
try various new products in the market.
 Advertising is a persuasive promotional tool especially for companies whose
products & services are targeted at mass consumer markets.

 Some People Criticize advertising parasitical, untrue, misleading and
obscene. Advertising Industry have been facing a lot of criticism in the
recent times as the advertising practices have not always been ethical.
Advertisements should be socially, culturally and morally ethical.
Advertisements appearing on television and radio have to be approved by
Doordarshan and AIR authorities. Similarly, advertisements in newspapers
and magazines, and on outdoor sites are also regulated by guidelines. In
today’s competitive market, it is free for all, thus advertisers are sometimes
following the unethical practices to fight the competition.
 Most advertisers and media recognize the importance of maintaining
consumer trust and confidence. The circle of self-regulation in advertising is
widening day by day. Even the code of ethics drawn up by the Advertising
Standards Council of India (ASCI) has not had much impact.

Ethics in advertising
 Ethics means “Good Conduct” or “Conduct which is right in view of the
society and the time period”. By common consent, various modes of
behaviour and conduct are viewed as “good” or “bad”.
 In other word, we can say that Ethics are moral principles and values that
govern the actions and decisions of an individual group. Ethics is a choice
between good and bad, between right and wrong. It is governed by a set of
principles of morality at a given time and at a given place and in a given
society. Ethics is related to group behaviour in ultimate analysis, thus setting
norms for an individual to follow in consistence with the group norms.

 A particular action may be within the law and still not be ethical; Target Marketing
is a good example for this. There is no law to restrict tobacco companies from
promoting their brands to Africans & American, though it is in India but for
Doordarshan only.
 Similarly the alcoholic – beverage companies promote their brands & target not
only college students but underage drinkers as well. These advertisements have
increased alcohol related problems.
 Advertisements exposing pornography is another serious issue in advertising
industry today.
 Advertisements promoting permissiveness & objectifying women are heavily
criticized in the society. Therefore, even advertising has ethical value. The mixing
of Art and facts in advertising communication are compliant to ethical principles.
 In today’s competitive and buyer’s market, an advertisement have to be truthful
and ethical. If an advertisement is misleading, the credibility of the organization is
lost. To view the truth in advertisement, it has to be seen from to consumer’s
point of view rather than from legal point. The advertising industry has been
frequently criticized for putting out misleading or exaggerated claims in respect of
product, goods and services advertised. It is also perceived as guilty of glorifying
certain habits or tendencies regarded as undesirable and encouraging consume
rest culture.

 However, it is very difficult to demarcate a clear line of difference between
what is true and what is false. But the advertisement as such is judged by its
impact, and by its acceptance by the consumers. The product must fulfill its
advertised claims. Advertisements should be decent and not be obscene. It
must be truthful. Sometimes, celebrities endorsing the product and spreading
falsehood is also criticized. Advertising is a social process, thus it must follow
the time-tested norms of social behaviour and should not affront our moral
sense.
 Ethics are rules of conduct or principles of morality that point us towards the
right or best way to act in a situation. Ethics vary from person to person,
society-to-society point of view. Remember that the various people have
different backgrounds, values and interests. You may see nothing wrong with
the advertisements for cigarettes or beer or sexually suggestive ads, but other
students, many oppose these actions on moral and ethical grounds. You will
have to draw your own conclusions as to what is right and what is wrong!

Ethical effect of advertising

Effect on culture: Culture refers to the way of life people. It includes lifestyle,
values, customs, morals and habits of society. Some advertisements are distorting the
cultural values.
1. Food habits: Excessive advertisements of junk food are adversely the food habit of
Children's and young people now children prefer food to Wholesome nutritious food like milk
green vegetables rice chapati etc
2. Costume style: some advertisement shoes models wearing Western vulgar dresses.
Youth in in Limited touch dressing styles section of society criticise the Western vulgar dress
style.
3.Wrong product Positioning: Some advertisement attach personality prestige which
some undesirable Product life cigaret wine whisky etc. Our Indian culture has a negative
image for such product so such as are distorting our cultural values.
4. Wrong language: Some advertisement use indecent language which has a bad effect on
kids and childrens as they imitate such language in their day to day conversation.

 Undermining the position of women and aged In some ads
womens are shown as sex objects they are really shown as
professional corporate official similarly age persons are mostly
shown dependent helpless Sheikh is there position in society some
women organisation has raised objections against this stereotyping
so some advertisement advertisers have started showing women as
professionals like doctors, dietitians etc.
 Effect on children:Ads children watch and advertisement they are
unable to access the advantage and disadvantage of product they
feel that whatever they advertised is true they insist their parent to
purchase advertised product like chocolates noodles it is moreover
when they observe vulgarity and violence in at see ads of
contraceptives their thinking is polluted use of advertising archive
that they are educating the children by giving knowledge of product
and methods of using such product this negative aspects of
advertising can overcome to some extent if such ads are banned
during Prime Time TV programs such as can be given in late Nights
when children do not watch TV.

 Moral degradation: Giving sexual appeal has become
very common practice for gaining attentions of viewer it is a
very common in the ads of liquor cigarette, personal
products cosmetics, shaving products etc. such ads have a
very wrong impact on the minds of viewers particularly
children and youth. They are losing their moral values.
Sexual appeal or n***** used simply to gain consumer
attention and not even appropriate to the product or service
being advertised is a poor taste even when such appeal is
used in case of related products such as condom people
may be offended by it. Many people considered n***** or
suggestive sex in advertising as objectionable with
increasing level of clutter in advertising environment
advertiser will probably continue use using appeals that
attract the attention of consumer and continued to offend
many people.

 Promoting materialism: advertising is often criticized for
its excessive possessiveness unnecessary desire for
products which buyers do not need and can't afford
sometimes by promoting attractive installment schemes,
buyers are Lured to buy the product but later they realize to
that they are not in a position to pay installment or maintain
the product. It lead to frustration and loss of peace of mind.
advertisements also persuade the public to replace the
existing product before their useful life for this advertisers
present their product with minor modification but make an
appeal that this product is more effective earlier product. it
mislead the people eating products before their economic
life.

 Promote social evils: some advertisement give birth to
social evils. In some ads excessive violence is shown. This
has a bad effect on youth and children. They imitate ads
and indulge in violent activity. Advertisers such as calvin
Klein, l'Oreal etc has been criticized by using a overt sex
appeal showing women as a sex object in their ads. A few
year ago Calvin Klein have was even boycotted for
featuring objectionable snapshot of teenagers in various
state of Undress.
 Misapplied facts: Some advertisements misapply the
factor to missguide the people example some advertisers
use the term made in USA USA is United satna
association an Association is satna a city of Madhya
Pradesh or like Made in UK, UK means Uttarkashi search
ads give the impression that product is made in United
States of America or made in United Kingdom respectively.

 Feeling of insecurity: Some advertisements create feeling of insecurity among
the audience by giving fear appeal example some ads of accident insurance Life
Insurance create excessive wear it create the feeling of insecurity in the mind of
those persons who cannot afford these policies.
 Backdoor popularity of brands of prohibited product: Government has
prohibited the advertisements of cigarette liquors on television for ads on
television such products are prohibited product but some advertiser producing
such prohibited products make backdoor entry for popularising their brand on
television. Manufacturers of such prohibited products and internationally
manufacture some non prohibited products the purpose of producing prohibited
product is to get entry in TV media TV by giving ads of non prohibited product
while the purpose is to popularise the brand of prohibited product which is the
main product of the advertisers product mix.
 Bait advertising: Some advertisers audience through bait advertising the bad
advertising. advertiser loss the audience by offering product at a very low price
and attract them towards his outlet but when audience visit advertiser's site late
they find that the lower price item offered in advertisement is a inferior called
quality and the normal quality product is being offered at a market price and not
at lower prices advertisement is unethical.

Social criticism and responsibility of
advertising
 Advertising is the most visible activity of business.
Advertising is the most popular mass communication
channel that has made mass selling possible.
Advertising made mass selling possible. Advertising is
Omni present. Advertising creates brand for the
products or services advertised. It allies, invites and
involves consumers along with itself. To creates images
for the products advertising professionals uses variety
of things like drama, music, action, romance, emotion,
sex, animated & functions characters and so on. It not
only invites consumer’s to try their products or
services but also invite public criticism.

 Much of the controversy stems from the ways many
companies use advertising as a selling tool and from
its impact on society’s tastes, value and lifestyles.
Mike Huges, president and creative director of the
Martin Agency, said that, “Ads help establish what is
cool in society; their message contribute to the
public dialogue. Gapads show Black, White &
Hispanic kids dancing together. Hilfiger ads showed
it’s cool for people to get along. “He argues that
advertising professional law a social & ethical
responsibility. Advertising contributes to have both
negative & positive influence on society. It is
criticized for encouraging materialism, manipulating
consumer to buy things they do not need;
stereotyping, fraudulent & so on.

 1. PUFFERY/FRAUDULATION: Very often we hear
that advertisement exaggerates about the product
qualities. Now a days ‘puffery’ i.e. “metaphor of
idea” forms to be main element in advertising. On
the one hand critics accuse it, while on the other
defenders i.e. advertisers and advertising
professionals opined it as a helping agent to
differentiate their brands from the competitors.
Puffery is considered to be an ‘opinion’ and not a
‘factual information’. Advertisers claim that the
consumers are intelligent enough to distinguish
between truth and exaggeration. Moreover they
are not blindly going to believe everything as such
presented in an advertisement. E.g. In the
advertisement of ‘Force 10’ shoes the copy is “I am
walking on air”.

 This metaphor that tells the lightness of the shoes, is unbelievable
that one can “walk an air”. But the studies reveals that often
many people start believing them & buy those products that have
exaggerated claims in their advertisements. With the use of
special effects exaggerating the “quality” and using various
“appeals” advertisers dramatized their products to such an extent
that reality takes a back seat. E.g. “Hajmola Anardana” is not
going to increase your retention power or drinking “Mirinda” you
will not forget anything or ‘VIP Franchie” would not get a girl
friend for you. Like wise, the advertisements of ‘Wheel” & “Vim”
bars show lemons on their package & advertisement even and the
products advertisers claim that it contain lemon while it is found
that they only have Lemon flavor in them. These kinds of
deception cases are more in India as well as in the world. Puffery,
though legal, but is not harmful to an extent. But false claim and
dishonesty are unethical practices and regular deception, leads to
losing costumers trust & confidence.

 2. UNTRUTHFUL OR DECEPTIVE: A number of studies have shown a general
mistrust of advertising among consumers. Deceptiveness is defined as not
only as false and misleading statements but also as false impressions
conveyed, whether intentional or not. False and subjective claims about the
products, is sometimes believed but are untruthful and misleading. The
problems of untruthful or fraudulent advertising exists more at the local level
and in specific areas such as mail order, telemarketing and other forms of
direct marketing. Advertisement should be informative and should be use
puffery or embellished messages.
 The following acts are considered unfair or deceptive practices :
 a) False promises b) Incomplete Descriptive c) Misleading Comparisons d) Bait
and Switch Offers e) Visual Distortions f) False Testimonials g) False
Comparisons h) Partial Disclosures i) Small – Print Qualifications j) Laboratory
Application

 3. OFFENSIVE OR IN BAD TASTE: Another one of the major complaints against
advertisements is offensive, tasteless, irritating, boring, obnoxious & so on.
Taste is subjective i.e. what is good taste to one may be bad for some one
else. Tastes changes with time even as what is offensive today may not be
tomorrow. Consumers can be offended by advertising in a number of ways.
E.g. the advertisements for products like contraceptives or personal hygiene
are not acceptable to some consumers as they often use nudity in their
advertisements. Condoms Ads are not acceptable by some of the people. The
advertisements of women’s undergarments and hemorrhoid products are found
to be irritating commercials. The type of appeal or the manner of presentation
often irritates consumer. E.g. Fear Appeal in Deodorants, Mouthwash & Anti-
dandruff shampoo ads are criticized to create anxiety & fear to be rejected in
the society; Sexual Appeal - Female as sex objects in masculine products like
shaving creams, undergarments etc.

 4. CREATES MATERIALISTIC DEMAND Advertising provides a variety of
alternatives to choose from people have needs. Advertising creates derives and
fantasies for the consumers. Some people crave for material possessions and
others for cultural and spiritual enhancement. Here Advertisers at the both end
of the spectrum. Many critics claim that the advertising encourages
materialism.
 Few critics attribute to advertising that
a) Seeks to create needs rather than merely showing how a product or service
fulfils them;
b) Surrounds consumers with the images of good life and convinces how the
materialistic possessions leads to happiness in life.
c) Portrays these possessions as symbol of status, success, social acceptance,
popularity, sex appeal and so on.
Formerly we did not have house with garages, but now everyone wants a garage or
two. Advertising differentiated between simple & formal sandals. It informs us
about twin-pack razors, Leo & Barbie range of toys. Advertising keeps pace with
dynamic market. It is a motivating force to exert harder to create and satisfy our
new & novel needs.

 5. MAKES PEOPLE BUY THE THINGS NOT NEEDED: Advertising creates
artificial needs. Advertises motivates and persuades consumers to buy the
things that are not needed even. According to many critics advertising should
not persuade by playing with consumers emotions, anxieties, psychological
needs & desires such as status, self esteem, attractiveness & others but
should just provide information useful in making purchase decisions such as
price, performance & other objective criteria.
 Critics say persuasive advertising foster discontent among consumers
 Encourage them to purchase products & services to solve deeper problems.
Defenders believe that very informative ad is often very persuasive and if
persuasive ad will not be permitted then there will be no ad as advertising’s
main objective is to persuade.
 People buy DVDs, Frozen Orange Juices, Cars & so on, even if they not need
it. People spend and status or self-actualization to satisfy their self-esteem
and status or selfactualization.

 6. COMPARATIVE ADVERTISING: Comparative advertising is another unethical
practice of advertising besides fraudulent and deceptary advertising.
 E.g.: The advertisements of Pepsi of Coca Cola: Both the brands try to compare
their brands & the series try to cut the features shown in their advertisements.
 Similarly, the ads of captain Cook Salt & Tata Salt. The new introductory brand
‘Captain Cook Salt’ presented the advertisements in a humorous way. In the reply,
Tata Salt’s ad talked about the brand loyalty & nationalism. This led to an ad-war
between the two brands.
 Similarly making the packaging or the names sounding similar to the major brands
in the market the competitor’s sells their brands like GOLOFLAKE for GOLDFLAKE.
Comparative advertising has become a major weapon though it is very risky.
 Likewise, claiming & playing with numbers & facts while comparing with
competitors in form of testimonials sometimes can lead the advertisers to the
legal authorities e.g. The Pepsondent people were asked to ban their ad of ‘being
102% better than their competitor” by MRTP commission on the complaint of
Colgate.
 Plagiarism or imitation in advertising copy is also flourishing in advertising world
today. One copy says, “Believe in the best” & another better than the best. One
claims for the flattest screen, other flatter than the flattest.

 7. STEREOTYPE: Advertising is often criticized of creating & perpetuating
stereotypes through portrayal of women, ethnic minorities & other groups. It
involves presenting a group of people in a pattern or manner that lacks
individuality.
 In our society, we have many stereotypes like South Indians are intellectuals;
Punjabi’s are boisterous & so on. Mother-in-law & daughter-in-law always fight,
father out of house management etc.
 Women: The most controversial of the stereotypes portrayed in advertisements is
that of women & failing to recognize the changing role of women in our society.
 Critics accuse advertisers to often depict women as preoccupied with beauty,
household duties and motherhood or show them as decorative objects or sexually
provocative figures. Moreover, housewives are portrayed, as they are just
concerned about the cleanliness of their homes, health of family members & so
on. Young girls occupied with beauty & boys. Very few ads recognize the diverse
role of women in society. Males are generally shown knowledgeable, active and
aggressive than females.
 Feminist groups such as the National Organization for Women (NOW) and Sexual
Assault Prevention & Awareness Center argue against such advertisements. While
sexism and stereotyping still exists, but advertising’s portrayal of women is
improving in many parts of the world. Advertisers are now portraying women
realistically.

 8. ADVERTISING AND SEX: Critics often accuse advertising for portrayal of
women as glamour props. Sex in Advertising is the most controversial aspect,
which is much of social issue than an ethical issue. As discussed earlier about
the stereotype in portraying women as housewives let us now discuss about
objectifying women in the advertisements. Decently portraying women in an
ad for condom is acceptable as it is required.
 But women provocating sex in advertisements of suitcases, Shaving foams or
creams, tyres, pens, shoes etc. does not make any sense at all
 E.g. In the advertisement of ‘Gel Pen’ the exposure of women & copy saying
‘sab kuchh dikhta hai’ is a matter of critique.
 Similarly ad of Tuff Shoes portraying the male & female models wearing tuff
shoes and a python draped around their nude bodies is not sensible. This ad
was banned.
 The ad of VIP Frenchie showing a male model in bathing robe is highly
obscene as countered by many critics. Many of the ads present even bare
male models, which is not relevant even. Critics concerns about the sexual
appeals in advertising that demean women or men by depicting them as sex
objects.

 9. IMPROPER LANGUAGE: One of the major complaints against advertising
is that the advertising copy is too breezy, too casual i.e. improper. It is
believed that the advertisements have destroyed the dignity of the
language. The research on advertising shows that consumer’s better
responds to the simple and down to earth language than to the more
dignified & formal copy. A successful copy is that which is descriptive,
colourful and pictures are as warm, human & personal.
 10. EXCESSIVE: In today’s world on an average are exposed to 1000
commercial messages per day. The advertising clutter is even worrying the
advertising professional about the negative impact of advertising
proliferation. With the increase in brand and the mass media options to
choose from, there is a boom in advertising industry today.

Case Study - POTENTIALLY OFFENSIVE
ADVERTISING (When a “gift” may offend)
 You are a junior account executive for the Watson-Holmes
advertising agency in Chicago. Your agency has just taken over the
Pop-Cola account. Pop is a new entry into the Cola wars, and is
young, hungry organization. It has already captured a small but
growing share of the soft drink market. Instead of concentrating on
the youth market, though, Pop is going after the 30-50-year old
market on the belief that they can successfully shift their
allegiances by using icons and symbols they are familiar with and
remember with nostalgic fondness. Last year, under another agency,
Pop-Cola ran a fairly successful series of ads playing off such
cultural symbols as disco dancing (they got permission to use the
iconic song “Staying Alive” from Saturday Night Fever), and peace
rallies complete with crowded scenes of happy hippies chanting for
Pop-Cola and peace.

 Although they were reasonably pleased with the results, they are seeking
an agency with an “edge” to pump their product up a notch. You’re
hoping to play an integral part in accomplishing that feat. Your
creative director has already come up with a series of ideas playing
off childhood memories of home, school, and holidays. However, she
is also pushing the creative envelope to obtain that “edge” that Pop-
Cola seems to want.
 The proposed ads feature various nostalgic touch stones that should
resonate with the target market, and with enough of a twist to get
attention. For example, one ad shows a classroom full of bright-eyed
10-year-olds eagerly responding to questions about history from the
teacher. The usual clichéd students appear—the smart girl, the dumb
boy, the “pretty” girl, and the smart-aleck. Pop-Cola is cleverly
inserted into the scene via the smart-aleck, complete with a comic
twist edged with just enough sarcasm to make it both nostalgic and
hip. So far, the Pop-Cola people are very happy with the approach.
Yesterday, the account executive, your immediate boss, ran the latest
idea by the team prior to a meeting with the Pop-Cola people today.
It is designed to come out during the Christmas holiday, a few months
away.

 The team as a whole loves it, and there’s good chance the Pop-Cola execs
will too. Here is the script treatment for a kick-off, 60-second television
commercial.
 SCRIPT TREATMENT: POP-COLA “GIFT OF THE MAGI” 60SEC.
 Open on peaceful evening over desert landscape. Small town is seen in the
distance from hilltop view. Stars are coming out in the sky. One is obviously
brighter than others. Figure suddenly fills screen in foreground, then moves
off with others quickly filling in behind. Sounds of clanking and shuffling
along with snorts of animals.
 Cut to cluster of people in heavy robes, animals snorting and stomping as
figures dismount. We see that the animals are camels. Quick flashes of faces,
bearded and grimy. Boxes are dropped on the ground making loud thumps.
Turmoil surrounds the unloading.
 The robed figures approach a rundown building. A light can be seen coming
through the windows. As the figures pass the window, we can see a quick
glimpse inside of other figures and animals. It looks like a barn

 As figures enter, close-up on woman’s face as she looks up. It is
radiant, head covered with a long scarf. Quick close-up of a man’s
face as he looks up, bearded, concerned.
 The robed figures approach, seen from behind. They part slightly to
reveal a rough, wooden box, packed with straw, in which a baby
appears to be lying. Quick close-up of the baby’s face, bright,
serene.
 The first robed figure places a box on the ground in front of the
baby and opens it. It is full of gold coins. The woman’s face lights
up in close-up as does the bearded man’s. The baby cries… we see
its face, unhappy.
 The second robed figure opens a similar box in front of the baby. It
is filled with blocks of something wrapped in colored papers. Again,
the woman’s face lights up in close-up as does the bearded man’s.
The baby cries again, even more mournfully… we see its face, still
unhappy.
 The third robed figure opens yet another box. In it is a bottle of
Pop-Cola. Same reaction from woman and bearded man, except
now the baby stops crying and actually smiles, then beams his
pleasure.

 The voices of a heavenly choir rise in unison singing the
Hallelujah Chorus. The camera zooms quickly out until we’re
outside the building, now emanating bright light. Chorus
rises to crescendo. Announcer: “Pop-Cola. Always the right
thing to bring.”
QUESTIONS:
 1. What, if anything, is ethically problematic about this
case?
 2. Who, if anyone, is potentially affected by this ad and
how?
 3. What ethical guidelines apply in this case?
 4. What options are available to you?

Legal aspect of Advertising
 In India from a mere 14 agencies in 1940, the number of
accredited agencies has now increased to 695 in 1997. The
turnover has also increased many hundred fold. According to
industry estimates, the turnover in 1996 stood at a whopping Rs.
4727 crores. There has been roughly an increase of 20 per cent
in the year 1997 (about Rs.5, 500 crores).
 Like any other profession, the advertising field is also governed
by the laws and enactment governing the mass media. There
are, however, certain laws and specific legislative enactment,
that are directed specifically at the industry which "determine
both the broad framework within which the industry is allowed
to operate and the content of its output,"

Major legal provisions are as follows:
 Section 292 and 293 of the Indian Penal Code, 1860, prohibit the
dissemination of any obscene matter. The Indian Post Office Act, 1898,
imposes a similar prohibition on the transmission of obscene matter
through the post. The Customs Act, 1962, allows the detention and seizure
of any obscene matter sought to be imported into the country.
 The Young Persons (Harmful Publications) Act, 1956, prohibits the
dissemination of publications deemed to be harmful to persons under the
age of twenty years.
 The Indecent Representation of Women (Prohibition) Act, 1986, forbids
the depiction of women in an indecent or derogatory manner in the mass
media.
 The Children Act, 1960, prohibits the disclosure of the name and address
and other particulars of any child involved in certain proceedings.

 The Emblems and Names (prevention of Improper Use) Act, 1950, forbids the
use by any private party of certain names, emblems, etc.
 The Prevention of Insults to the National Honour Act, 1971, forbids the
bringing into contempt of the national flag or the Constitution of India in any
manner.
 The Indian Penal Code, 1860, prohibits the publication of matters connected
unauthorized lotteries, while the Indian Post Office Act, 1898, imposes a
similar prohibition on the transmission by the post of such matter. The Indian
Penal Code, 1860, also prohibits the publication of appeals using national
symbols for furthering the prospects of any candidate at an election.
 The Drugs and Magic Remedies (objectionable Advertisement) Act, 1954,
prohibits advertisements for products and services claiming to cure certain
medical conditions. The Prize Competitions Act, 1955, prohibits the
publication of matter with unauthorized prize competitions, while the Prize
Chits and Money Circulation Schemes (Banning) Act, 1978, imposes a
similar prohibition in respect of chits and money circulation schemes.

 Industry-Specific Laws
 The Drugs and Cosmetic Act, 1940
 The Transplantation of Human Organs Act, 1994
 The Drugs and Magical Remedies (Objectionable
Advertisements) Act, 1954
 The Prenatal Diagnostic Techniques (Regulation and Prevention
of Misuse) Act, 1994
 Advocates Act, 1961
 Infant Milk Substitutes, Feeding Bottles and Infant Foods
(Regulation of Production, Supply and Distribution) Act, 1992

 Securities and Exchange Board of India Act, 1992
 The Prize Chits and Money Circulation Schemes (Banning) Act, 1978
 Cigarettes and other Tobacco Products (Prohibition of Advertisement and
Regulation of Trade and Commerce, Production, Supply and Distribution) Act,
2003
 Public Gambling Act, 1867, the Lotteries (Regulation) Act, 1998 and the Prize
Competitions Act, 1955
 Indian Medical Council (Professional Conduct, Etiquette and Ethics)
Regulations, 2002
 The Food Safety & Standards Act, 2006

Products and Services Banned From Advertising
 1 Tobacco : The Cigarettes and other Tobacco Products (Prohibition of Advertisement
and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003
("Tobacco Prohibition Act") prohibits all direct and indirect adertising of tobacco
products in all media.
 2 Human Organs :The Transplantation of Human Organs Act, 1994: This law
provides for the regulation of removal, storage and transplantation of human organs for
therapeutic purposes and for the prevention of commercial dealings in human organs.
This law prohibits any advertising inviting persons to supply, offering to supply, any
human organ for payment.
 3 Magical Remedies : The Drugs and Magical Remedies (Objectionable
Advertisements) Act, 1954 prohibits advertisement of magical remedies of diseases and
disorders.
 4 Services for Pre-Natal Determination of Sex : The Prenatal Diagnostic Techniques
(Regulation and Prevention of Misuse) Act, 1994 prohibits advertisements relating to
pre-natal determination of sex.

 5 Infant formula : Advertising forbidden in order to encourage natural
feeding of infants. See details under Food.
 6 Prize Chits and Money Circulation Schemes: The Prize Chits and
Money Circulation Schemes (Banning) Act, 1978 prohibits
advertisements relating to prize chit2 and money circulation schemes.
 7 Physicians : Under the Indian Medical Council (Professional Conduct,
Etiquette and Ethics) Regulations, 2002, issued under the Indian Medical
Council Act, 1956, physicians are not allowed to advertise their services in
any form or manner of advertising through any mode, as soliciting of
patients directly or indirectly, by a physician, by a group of physicians, or by
institutions or organizations is unethical. (A physician refers to a doctor with
a qualification of MBBS or MBBS with a postgraduate degree/diploma or
with an equivalent qualification in any medical discipline.) However,
medical practitioners are allowed to make a formal announcement in press
regarding the following:

 On starting practice ;
 On change of type of practice:
 On changing address:
 On temporary absence from duty :
 On resumption of another practice:
 On succeeding to another practice;
 Public declaration of charges
 8 Legal Services :The Bar Council of India Rules formulated under the Advocates
Act 1961 strictly enforce the advertisement ban and publicity rules governing law
firms' websites. These rules were enacted and enforced to curb the false advertisement
of lawyers to gain publicity to attract clients.

Regulations Related to Product and Service Advertising
 1 Alcohol (Beer, Wine, and Spirits) :
The Cable Television Network Rules, 1994, the Advertising Codes
of Doordarshan, and the All India Radio and Norms for Journalist
Conduct issued by the Press Council of India prohibit any
advertisement directly or indirectly promoting the production, sale, or
consumption of cigarettes, tobacco products, wine, liquor, or other
intoxicants. However, some states allow advertising through
billboards, signboards etc. but subject to many restrictions. Also, the
ASCI Code prohibits use of minors for advertising alcohol products.

 2 Professionals such as Chartered Accountants, Company
Secretaries & Cost Accountants: These professionals are
prohibited from soliciting clients or professional work by
advertisement. However, they may issue advertisements about their
firm or services of their firm, through any mode of transmission,
having inter alia details of names of partners, address and website,
telephone, mobile, e-mail, fax number of the member, year of
establishment, additional recognized qualifications, languages
spoken by the partner(s), honours or awards in the field of teaching,
research, authorship etc.
 3 Firearms, Weapons, and Ammunition :Sale and purchase of
such items requires a license from government authorities.
Therefore, advertisements related to such products are not
permissible in India under the Arms Act, 1959.

 4 Food :As per the Food Safety & Standards Act, 2006,
no advertisement relating to the standard, quality, quantity
or grade-composition, and no representation concerning
the need for, or the usefulness of any food can be made
which is misleading or deceiving or which contravenes the
provisions of this law or rules and regulations made
thereunder.
 5 Infant Milk Food: The Infant Milk Substitutes,
Feeding Bottles and Infant Foods (Regulation of
Production, Supply and Distribution) Act, 1992
prohibits the advertising of infant milk substitutes or
feeding bottles.

 6 Gaming (gambling, games of chance; differentiate between
private-sector and "state" lotteries): The federal structure in the
Constitution of India explicitly gives the States the right to
legislate upon "gambling and betting". The Public Gambling Act,
1867 prohibits gambling activities in India. However, the Public
Gambling Act permits games of mere skill. In April, 2011, the
Information Technology Act, 2000 was also amended to ban
Internet gambling and online betting websites. The Lotteries
(Regulation) Act, 1998 gives power to the concerned State
government to hold lotteries subject to prescribed conditions.
Under section 294-A of the Indian Penal Code, advertisements of
a lottery unless it is in accordance with the Lotteries (Regulation)
Act shall be punishable. The Prize Competitions Act,
1955controls and regulates prize competitions in certain parts of
India and prohibits the advertisement of unauthorized prize
competitions.

 7 Medical Devices :The authority principally responsible for
regulating medical devices in India is the Central Drugs Standard
Control Organization ("CDSCO") under the provisions of the
Drugs & Cosmetics Act, 1940. CDSCO's functions include
regulating the medical devices industry by approving for import,
manufacture and sale of medical devices in India.
 8 Medical Services: An institution run by a physician for a
particular purpose such as a maternity home, nursing home, private
hospital, rehabilitation centre or any type of training institution etc.
may be advertised in the lay press, but such advertisements should
not contain anything more than the name of the institution, type of
patients admitted, type of training and other facilities offered and
the fees. Please also see 2.7 above.

 9 Nutritional Supplements: It is regulated under the
Food Safety and Standards Act, 2006.
 10 Occult ("Psychic") Services: These services are not
legally recognized in India and are not permissible under the
Drugs and Magical Remedies (Objectionable
Advertisements) Act, 1954
 11 Pharmaceuticals (over-the-counter and prescription
medications): The phrase over-the-counter (OTC) has no
legal recognition in India. All the drugs not included in the
list of "prescription-only drugs" are considered to be non-
prescription drugs (or OTC drugs). Prescription-only drugs
are those medicines that are listed in Schedules H and X of
the Drug and Cosmetics Rules, 1945.

 12 Tests and Lab Analysis:The Drugs and Cosmetic Act, 1940 prohibits
advertisements for any drug or cosmetic from using reports of tests or
analysis of the Central Drugs Laboratory or by a government analyst.
 13 Political Candidates, political platforms, political parties, political
issues: The Representation of the People (Amendment) Act, 1996 has
the following provisions relating to advertisements:
a. prohibit advertisements for a period of forty-eight hours ending with the
hours fixed for conclusion of polling for any elections in a given polling
area.
b. use of displaying posters, signboards etc. for political advertisement in any
public place strictly in accordance with the relevant provisions of the local
laws.

a. equitable opportunity to all political parties and candidates to have
access to public advertisement space for election related
advertisements during the election period.
b. use of private premises for political advertisement only with the
voluntary permission of the occupant.
c. prohibition of any and all advertisements at the cost of the public
exchequer regarding achievements of the political party/ruling
government.
The statute provides for a penalty of imprisonment and/or fine for
anyone, including advertisers, who contravenes these provisions.

 14 Products Related to Sexuality (condoms, ED drugs, etc.):
Advertisements related to sexuality are allowed with the provision
that there should not be any indecent representation of women
under the Indecent Representation of Women (Prohibition) Act
1986. Products must comply with the Drugs and Cosmetic Act
1940 and other certification rules under the Cable Television
Network Rules 1994.
 15 Religion : Under the Cable Television Networks Rules 1994,
Advertising Codes of Doordarshan & All India Radio and
Norms for Journalist Conduct issued by the Press Council of
India, advertisement based on religion or to hurt religious
sentiments are not allowed. Also, such advertisement may be
punishable under Indian Penal Code 1860.

 16 Securities : The Securities and Exchange Board of India
(Prohibition of Fraudulent and Unfair Trade Practices Relating
to Securities Market) Regulations, 2003 issued under section 30 of
the Securities and Exchange Board of India Act, 1992 prohibits
fraudulent or unfair trade in securities. These regulations further
provide that dealing in securities shall be deemed to be a fraudulent
or an unfair trade practice if it involves an advertisement that is
misleading or contains distorted information and which may
influence the decision of the investors.
 17 Sexual Services : Advertisement pertaining to sexual services is
illegal in India.
 18 Tobacco Products (cigarettes, cigars, snuff, pipe tobacco):
 19 Toys : There is no specific restriction on the advertisement of toys
provided they are in compliance with other applicable laws.

 20 Advertisement by Companies : The Companies
Act 1956 stipulates that no deposits from the general
public should be accepted by public companies (other
than non-banking financial companies) without issuing
advertisement following the prescribed norms. The
Companies Act has also specified various provisions
relating to advertisement by Indian companies.
 21 Advertisement Relating to Packaged Goods, etc. :
The Standards of Weight & Measures Act, 1976
prohibits issuing advertisements otherwise than in
accordance with the provisions of this law.

Regulations Related to Advertising Methodology
 1 Advertising to Children (advertising during and immediately
before and after children's programming) : The Young Persons
(Harmful Publications) Act, 1956 prohibits advertisements relating
to any harmful publication i.e., any publication that tends to corrupt
a young person (person under the age of 18 years) by inciting or
encouraging him or her to commit offenses or acts of violence or
cruelty or in any other manner whatsoever.

 According to the ASCI Code, advertisements addressed to minors shall not contain
anything, whether in illustration or otherwise, which might result in their physical,
mental, or moral harm or which exploits their vulnerability. For example,
advertisements may not:
 Encourage minors to enter strange places or to converse with strangers in an effort to
collect coupons, wrappers, labels or the like
 Feature dangerous or hazardous acts which are likely to encourage minors to emulate
such acts in a manner which could cause harm or injury
 Show minors using or playing with matches or any inflammable or explosive
substance; or playing with or using sharp knives, guns, or mechanical or electrical
appliances, the careless use of which could lead to their suffering cuts, burns, shocks,
or other injury
 Feature minors in promoting tobacco or alcohol-based products
 Feature personalities from the field of sports, music, or cinema for products which,
by law, either require a health warning in their advertising or cannot be purchased by
minors.

 2 Celebrity Endorsements: No current restrictions.
 3 Comparative Advertising (ads that compare the advertiser's product to that
of a competitor) : The provisions pertaining to comparative representation were
part of "Unfair Trade Practice" under the Monopolies and Restrictive Trade
Practices Act, 1969 (MRTP Act). After repeal of the MRTP Act, the provisions
relating to unfair trade practices were inserted in the Consumer Protection Act,
1986. However, a business entity cannot claim relief against unfair comparative
advertising under the Consumer Protection Act, as a business entity is not a
consumer. This can be taken up only by consumer associations, the central
government, or state governments, and it does not provide protection to the
business entity equal to the protection under the MRTP Act. Thus, under the
existing law, a manufacturer whose goods are disparaged has no standing to seek a
remedy. Presently, in the absence of any specific legislative regulating comparative
advertising, disputes are decided by various courts on the basis of the facts in each
case. However, ASCI code (which is made part of the Cable Television Network
Rules, 1994 as well) permits advertisement containing comparisons including those
where a competitor is named in the interests of vigorous competition and public
enlightenment, provided:

a. It is clear what aspects of the advertiser's product are being compared with what
aspects of the competitor's product.
b. The subject matter of comparison is not chosen in such a way as to confer an
artificial advantage upon the advertiser or so as to suggest that a better bargain is
offered than is truly the case.
c. The comparisons are factual, accurate and capable of substantiation.
d. There is no likelihood of the consumer being misled as a result of the
comparison, whether about the product advertised or that with which it is
compared.
e. The advertisement does not unfairly denigrate, attack or discredit other products,
advertisers or advertisements directly or by implication.
Presently, ASCI is actively taking action against any advertisements making
unsubstantiated claims, exaggeration, unfair denigration in violation of ASCI Code.

 4 Contests (games of chance and games of skill): The Public
Gambling Act, 1867 prohibits gambling activities in India. However,
the Public Gambling Act permits games of mere skill.
 5 Deceptive or Misleading Advertising: Deceptive or misleading
advertisements are restricted under the various legislations including
the Consumer Protection Act, 1986; Cable Television Network Rules,
1994; Norms for Journalist Conduct issued by the Press Council of
India Act and ASCI Code.
 6 Surrogate Advertising : The ASCI Code provides that
advertisements of products whose advertising is prohibited or
restricted by law or by the ASCI Code must not circumvent such
restrictions by purporting to be advertisements for other products the
advertising of which is not prohibited or restricted by law or by ASCI
Code. To determine if there is an indirect advertisement of prohibited
products due attention shall be given to the following:

a. Visual content of the advertisement must depict only the product
being advertised and not the prohibited or restricted product in any
form or manner:
b. The advertisement must not make any direct or indirect reference to
the prohibited or restricted products
c. The advertisement must not create any nuances or phrases promoting
prohibited products
d. The advertisement must not use particular colours and layout or
presentations associated with prohibited or restricted products
e. The advertisement must not use situations typical for promotion of
prohibited or restricted products when advertising the other products.
The Cable Television Networks Rules, 1994 has also imposed similar
restrictions to curb surrogate advertising.

 7 Advertorials and Disguised Ads : The Norms for
Journalist Conduct issued by the Press Council of India,
Cable Television Network Rules, 1994 and Advertising
Code of Doordarshan requires that advertisements must
be clearly distinguishable from news content carried in
the newspaper.
 8 False Advertising: False advertisements are restricted
under the various legislations including the Consumer
Protection Act, 1986; Cable Television Network Rules,
1994; Norms for Journalist Conduct issued by the Press
Council of India Act and ASCI Code.

 9 "Free" Gifts/Samples : The Consumer Protection Act 1986,
Section 2 (3) (a) states that (i) the offering of gifts, prizes or other
items with the intention of not providing them as offered or
creating impression that something is being given or offered free
of charge when it is fully or partly covered by the amount charged
in the transaction as a whole, or (ii) the conduct of any contest,
lottery, game of chance or skill, for the purpose of promoting,
directly or indirectly, the sale, use or supply of any product or any
business interest, is an unfair trade practice.
The Norms for Journalist Conduct issued by the Press Council of
India has stated that gift including those given by the advertisement
agencies for publication of material relating to their clients or
otherwise should not be accepted by the journalist.

 10 Free Speech (specific limitations, e.g. personal slurs, defamation,
political statements) : Article 19(1)(a) of the Constitution of India
protects the right to freedom of speech and expression, which is also
extended to advertisements. However, like any other right, this freedom is
also subject to reasonable restrictions imposed by Article 19(2) of the
Constitution of India.
 Furthermore, the ASCI Code states that no advertisement shall be
permitted which:
 Derides any race, caste, color, creed, or nationality
 Tends to incite people to crime or to promote disorder and violence or
intolerance
 Presents criminality as desirable or directly or indirectly encourages people,
particularly minors, to emulate it or conveys the modus operandi of any
crime
 Adversely affects friendly relations with a foreign state

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