Industry Odisha Bureau, May 26: Lacking a legally robust norm to curb the ongoing practices of ‘surrogate advertising’ allegedly by the Indian liquor firms, Government of India (GoI)’s Department of Consumer Affairs is said to have shelved its plan for the time being.
As per sources, the GoI has opted for such a postponement owing to the absence of a “legally sustainable definition to curb the practice” anticipating backlash and legal challenges from the influential liquor lobby in India.
However, the GoI would “regulate such surrogate advertisings on a case-by-case basis under the existing Guidelines for Prevention of Misleading Advertisements and Endorsements, 2022, notified by the Central Consumer Protection Authority (CCPA),” media reports said.
As per legal experts, “Misleading advertisement detrimental to consumers can lead to imprisonment for up to two years and a fine of up to Rs 10 lakh, with subsequent offences potentially resulting in imprisonment for up to five years and a fine of up to Rs 50 lakh, as per Section 89 of the Consumer Protection Act (CPA).”
Legal experts also reportedly argued, “Even though the CCPA has been empowered by the CPA to initiate legal actions against such misleading advertisement, but the Act does not specifically define ‘surrogate advertising’ that can easily be challenged by the liquor lobby in the court of law.”
Ironically, “The Government exchequer earns a heavy amount from the excise revenues resulting in an allegedly lenient stance on such ‘surrogate advertisings” by the liquor firms to promote their brand names.”
Notably, “Surrogate Advertising is a marketing strategy where a brand promotes a restricted or banned product indirectly by advertising another product under the same brand name, such as alcohol, tobacco, or certain pharmaceuticals, by using a substitute product or service from the same brand.”
Besides, “The term ‘surrogate’ literally means ‘substitute’. For example, a liquor brand may advertise soda, juices, or music CDs under the same brand name to maintain brand visibility while circumventing advertising bans. The main goal of surrogate advertising is to keep the brand name alive in the consumers’ minds without directly promoting the restricted product.”
