India plans to clamp down on surrogate ads on liquor
iron fist. Draft rules could fine firms and ban celebrities from misleading ads
India, which bans direct advertising of liquor, is set to announce sweeping rules that will bar even surrogate ads and sponsoring of events, which could force firms such as Carlsberg, Pernod Ricard and Diageo to redraw marketing campaigns.
Such “surrogate ads” often get round the ban by ostensibly showing less desirable items instead, such as water, music CDs or glassware garbed in logos and hues linked to their key product and are often promoted by popular Bollywood film stars.
Now they could bring fines for companies and bans for celebrities endorsing tobacco and liquor ads deemed misleading, according to the top civil servant for consumer affairs and draft rules being reported for the first time by Reuters. “You can’t take a circuitous way to promote products,” the official, Nidhi Khare, told Reuters, adding that final rules were expected to be issued within a month.
Sea change ahead?
“If we find ads to be surrogate and misleading, then even those who are endorsing (products), including celebrities, will be held responsible.” For example, Carlsberg promotes its Tuborg drinking water in India, with an ad showing film stars at a rooftop dance party and the slogan “Tilt Your World”, which echoes its beer ads elsewhere, emblazoned with the message: “Drink Responsibly”.
Diageo’s YouTube ad for its Black & White ginger ale, which has drawn 60 million views, features terriers from its scotch of the same name. The changes threaten a sea change for liquor makers in India, the world’s eighth-biggest alcohol market by volume, with an annual revenue of $45 billion, as per Euromonitor’s estimates.
Penalty
Penalties rely on consumer law, opening manufacturers and endorsers to fines of up to ₹50 lakh, while promoters risk endorsement bans running from one to three years. Members of the International Spirits and Wines Association of India “are committed to a compliant way of building brand extension businesses,” said its outgoing chief executive, Nita Kapoor.
The group was in talks with the government and supported advertising of “genuine” brand extensions, she added.