In a significant move aimed at curbing surrogate advertising, the government is poised to introduce a stricter set of regulations. Sources indicate that the new rules, expected to be announced this month, will adopt a more stringent approach towards the advertising of surrogate products.
Currently, brands extend surrogate advertising to promote their products—such as music CDs and mineral water—particularly during major sporting events like the World Cup. However, the Union Health Ministry has now approached the Board of Control for Cricket in India (BCCI) and the Sports Authority of India (SAI), urging them to take proactive measures against surrogate advertising of tobacco and alcohol-related products by sportspersons. It remains unclear whether these measures will target individual players or entire teams, which often benefit from numerous sponsors within the alcobev industry.
The forthcoming regulations follow a report by the Central Consumer Protection Authority (CCPA) highlighting violations by manufacturers in surrogate advertising. In response, an 11-member committee chaired by consumer affairs joint secretary Anupam Mishra was established. The new guidelines, falling under the Consumer Protection Act 2019, will outline permissible and prohibited practices for manufacturers engaging in surrogate advertising. These regulations will not only affect alcobev manufacturers but also industries such as tobacco and e-cigarettes.
A noteworthy aspect of the new rules is the expected requirement for manufacturers to regularly provide market reports on the sales volumes of their advertised products. While this policy is not entirely new, it is anticipated to be enforced more rigorously this time.
The introduction of these guidelines is particularly intriguing given that the alcobev industry is a significant contributor to the exchequer. With Indian alcobev manufacturers making strides on the global stage and gaining international recognition, the new regulations may slightly dampen their spirits. As the industry navigates these impending changes, it will be interesting to observe how it adapts and continues to thrive despite the tighter regulatory environment.