The Constituent Assembly of India. regarded the consumption of alcoholic beverages as a social evil, with the nation’s policymakers largely unani-mous on the subject of total prohibi tion. Approximately 77 years ago, the architects of the Indian Constitution reflected this mindset by including Article 47 in the Directive Principles of State Policy. This article underscores the State’s duty to enhance public health and living standards. Specifical ly, it directs the State to prohibit the consumption of intoxicating drinks and drugs harmful to health, except for medicinal purposes.
In a country where the Constitution advocates restrictive consumption and potential prohibition of alcoholic beverages, advertising such products faces significant regulatory scrutiny. As a result, several regulatory bodies actively introduce stringent rules to curb liquor advertising. Over the years (1999-2024), organizations such as the Central Consumer Protection Authori-ty (CCPA), Central Board of Film Certi fication (CBFC), Department of Consumer Affairs (DoCA), and The Advertising Standards Council of India (ASCI) have issued numerous notifications and guidelines target-ing the surrogate advertising of alcoholic beverages. Beyond issuing these orders, these agencies regular-ly engage with stakeholders to discourage such practices.
The Rise of Surrogate Advertising
Despite these efforts, surrogate advertising continues to exploit loopholes through products like soda, water, and music CDs, raising fresh concerns among regulatory authorities. Consequently, the Ministry of Consumer Affairs has directed the CCPA to introduce a robust ordinance aimed at haiting the surrogate advertising of alcohol-ic beverages entirely. As this article is being written, a relevant gazette notification may already have been issued, or it is imminent.
Defining Surrogate Advertising
To understand the term, let us refer to the CCPA’s gazette notification dated 9th June 2022: Prohibition of Surrogate Advertising:
1 No surrogate or indirect adver tisement shall be made for goods or services whose advertising is Despite these efforts, surrogate advertising continues to exploit loopholes through prod-ucts like soda, water, and music CDs… otherwise prohibited or restrict-ed by law, by circumventing such prohibition and portraying it as an advertisement for other permissible goods or services.
2 An advertisement qualifies as surrogate or indirect if:
(a) It directly or indirectly suggests that it is an advertisement for goods. or services whose advertising is prohibited.
(b) It uses brand names, logos, colors, layouts, or presentations associated with prohibited goods or services.
Exceptions: The mere use of a brand or company name that can also apply
A strong approach to tackling surro-gate advertising is through authentic brand extensions to restricted goods or services is not considered surrogate advertising if the advertisement complies with all regulatory guidelines.
Prohibited Advertisements: No advertisement shall promote goods, products, or services banned from production, sale, or provision, or prohibited from being advertised under any existing laws or regula-tions.
OWLAVONE CAMIS The Solution: Genuine Brand Extensions: The most effective way to address surrogate advertising is through genuine brand extensions. Given the regulatory scrutiny of soda, water, and music CDs, it is advisable to re-evalu-ate brand extension strategies from the perspective of the ASCI guidelines. The ASCI Code, specifically Chapter III Clause 3.6(a), outlines how brand extensions can qualify as genuine.
Key Provisions of the ASCI Code: 1.The brand extension product or service must be registered with the appropriate government authority (e.g., GST, FDA, FSSAL, TM).
2. For brands established for over two years, specific financial criteria must be met.
3. Newly launched brand extensions (less than two years old) must meet at least one alternative financial criteri on.
4. The scale of advertising should align with the sales of the brand extension:
. Advertising budgets should not exceed 200% of the sales turnover in the first two years. . . For subsequent years, the limit reduces progressively to 100% (Year 3), 50% (Year 4), and 30% (thereafter).
5. Extensions failing to meet these criteria will be deemed surrogate advertisements, not genuine brand extensions.
Recommendations Marketing managers in liquor compa- nies are advised to recalibrate their advertising strategies and prioritize genuine brand extensions. Adopting compliant advertising practices will not only align with regulatory expec tations but also safeguard brand reputation and long-term growth.
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Consulting Editor- Gopal Joshi
