New ASCI clause mandates labelled social media ad posts

India — The Advertising Standards Council of India (ASCI) has introduced a new clause to its Code for Self-Regulation in Advertising, which requires media companies to identify paid content on their social media handles.

As part of the ‘Truthful and Honest Representation’ chapter, the new clause 1.8 mandates any paid or sponsored post by a media company to have a clear disclosure, informing its audience that it is promotional in nature.

The stated changes come after various complaints on misleading or undisclosed promotions on different platforms. The ASCI also stated that it is essential to protect both audiences and media brands as digital media is primarily regarded as a source for news and information.

Paid posts must now label contents with “Advertisement”, “Partnership”, “Ad”, “Free Gift”, “Sponsored”, “Platform disclosure tags”, and “Collaboration”

Manisha Kapoor, CEO and secretary general of ASCI, said: “Labelling sponsored content is crucial for several reasons. It builds trust and transparency with the audience, which appreciates knowing whether it’s an endorsement or recommending something in exchange for compensation. Second, it helps to comply with the laws and guidelines, which may require one to disclose any material connection or relationship you have with a brand or product. Finally, it helps avoid potential penalties, fines or legal actions from regulators, who may accuse you of deceptive or unfair marketing practices. ASCI monitors such content closely to avoid any brand influence of misleading content by brands.” ⁶

Kapoor elaborated, “Several media outlets regularly post editorial content on their social media handles. Increasingly, we see that advertisements with no or poorly visible disclosures are making their way to such posts. To maintain the integrity and trust of media news and features, it is important that sponsored or promoted content is distinguished by means of upfront disclosures. This prevents such advertisements from misleading consumers about their true nature. Consumers have a right to know if they are dealing with sponsored or editorial content right at the beginning.”