MIB affidavit in SC on SDC: Exempt ad agencies, print media, ASCI members, startups and UGC

New Delhi: The Ministry of Information and Broadcasting (MIB) has filed an affidavit with the Supreme Court requesting that advertising agencies be exempted and that programmatic ads, online ads and user-generated content be excluded from the self-declaration certificate (SDC) framework.

The affidavit, submitted by Senthil Rajan, Joint Secretary at the MIB, on August 23, 2024, proposed implementing a unified SDC across all media platforms to simplify compliance.

The MIB suggested that advertising agencies should not be required or held accountable for uploading the SDC, as multiple advertising or media agencies may be involved in providing services.

The affidavit read, “It was highlighted that there are three main types of ad agencies: Creative Agencies, Media Agencies, and Performance Agencies. Creative agencies focus on developing ads based on the advertiser's mandate and claims about their products or services. Media agencies handle media planning and purchasing. Performance agencies use data, technology, and expertise to achieve success in the digital space. Therefore, they suggested that advertising agencies should not be compelled or made liable to upload SDC because one can have multiple advertising or media agencies empanelled to provide services."

In its affidavit, the MIB outlined several key recommendations, including:

• Consolidation of portals: The ministry suggested merging the two existing portals for SDC into “a single, user-friendly platform.”
• Unified SDC across all media: A single SDC could be made applicable to all media platforms, “reducing compliance burdens for the industry.”
• Exemptions for certain entities: Ad agencies, print media, ASCI members, and startups “could be exempt from the SDC requirement.” 
• Limited scope for SDC: The mandate could be restricted to advertisements for products and services from the food and health sectors, addressing the primary concern of misleading health claims.
• Trial period: The period until the final verdict in the case could be treated as a trial phase, allowing for adjustments and refinements based on practical experience.

In addition, the MIB proposed that the term 'advertiser' should exclude 'user-generated content' and that online advertisements be exempt from the SDC mandate, aiming to address challenges in tracking and regulating online content. 

These recommendations are based on feedback from various stakeholders, including advertising agencies, media companies, and industry associations. 

The ministry believes that implementing a unified SDC would simplify the process for advertisers and enhance transparency within the advertising industry.