The Supreme Court chastised yoga guru Ramdev's Patanjali Ayurved Ltd for deceptive advertisements, but Mamaearth parent Honasa Consumer Pvt. Ltd was the most serious advertising violation in FY24, according to the Advertising Standards Council of India (ASCI) on Wednesday.
With 187 of these advertisements, ASCI determined that Honasa was the largest violation, followed by the sports betting businesses WinDaddy and Fun88 India with 98 apiece. Honasa is also the owner of businesses like Ayuga, Aqualogica, The Derma Co., and Dr. Sheth's Skin and Hair Clinic.
Companies that violated ad regulations
According to a report by ASCI, Patanjali was implicated in up to 28 advertising violations during the fiscal year of FY24. Further, the report also stated, that these included product endorsements for its DantKanti toothbrush, chyawanprash, heart medications, Ayurvedic medicines that combat infections, ointments, honey, sprays, and tablets for orthopedic and pain treatment.
Women's apparel retailing platform Urbanic, its parent Maysquare Lifestyle Pvt. Ltd, Rummy24 managed by Ability Games, and makeup brand Renee Cosmetics were among the companies accused of breaking advertising regulations.
Other companies on the list include Bright Lifecare Pvt. Ltd, which owns MuscleBlaze and HealthKart, as well as Unacademy and FirstCry. The report also stated that, interestingly, the most offensive advertisements this year are from betting and gaming organisations rather than healthcare companies that make exaggerated claims of miraculous cures. The majority, or 85%, of all complaints filed last year against false and misleading advertisements were on digital platforms.
According to ASCI, of all the advertisements listed, more than 1,300 advertisements for illicit gambling, along with roughly 150 advertisements for alcohol, e-cigarettes, and vapes, were submitted to the Information and Broadcasting Ministry. Ayush's ministry received reports of about 1,250 advertisements for pharmaceuticals and supernatural cures. Throughout the year, reports of possible violations of the Drugs and Magic Remedies Act, 1954 (DMR) were made against around 250 advertising.
The majority of these were marketplace website adverts, and 91% of these were illegal since they dealt with the maintenance and enhancement of "sexual prowess".Several laws in the nation forbid advertising for a variety of products. Tobacco items, betting and gambling services, alcoholic beverages, and drug advertisements that promise "miraculous cures" are all prohibited.
Surge in Digital ads
These commercials are frequently seen on digital platforms, which are used by numerous firms to advertise similar goods. Furthermore, some categories—like real estate—must require specific information, including registration numbers and QR codes, in their adverts, while others are completely prohibited from doing so. There is a legal repercussion for not providing this required information.
"The number of ads that made a violation on digital mediums have gone up nearly three-fold in the last 3-4 years, this is because for many categories advertising has moved to the digital medium and also, unlike television, there are generally more ads in terms of volumes now than from a few years ago," Manisha Kapoor, chief executive officer and secretary general of the council stated.
Following the pandemic, interest in the healthcare industry has increased generally, which may have resulted in a significant increase in the number of ads in this area. Additionally, in the past, healthcare corporations advertised their products in hyperlocal and regional media, maybe to avoid being discovered. Nowadays, a large number of those companies use internet advertising.
Skin and personal care was another significant sector with offensive advertisements, with 98% of the more than 1,000 ads that ASCI examined having to be changed. With 95% of the advertisements seen on digital media, this portion that was called out also ran almost exclusively on digital platforms. Of these, influencers endorsed 55% of the products.
Inputs by Agencies
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