MIB receptive to industry concerns on SDCs; will present issues to SC on July 9

New Delhi: During a more than two-hour meeting on Tuesday, June 25, between the Ministry of Information and Broadcasting and advertising, marketing, and media industry bodies, the ministry listened to stakeholders' concerns about self-declaration certifications. 

The ministry has asked stakeholders to compile these concerns, which it will present to the Supreme Court during the hearing on July 9, 2024.

“The ministry was very receptive to the industry bodies' concerns and understood the challenges we are facing due to the SDC mandate,” an industry leader told BestMediaInfo.com, privy to the matter.

The Indian Society of Advertisers (ISA) urged the MIB for a "one-time declaration format" instead of individual certificates for every ad, according to a source. “This could be done either based on the calendar or commercial year and be submitted in the form of an affidavit, simplifying the process,” the source told BestMediaInfo.com.

Representatives from the radio industry informed the ministry about the revenue loss they are facing due to the SDC compliance mandate. “The smaller radio advertisers spending below Rs 1000 don’t want to shell out any extra on getting the SDC mandate,” sources said.

During the meeting, the Indian Newspaper Society (INS) pointed out technical glitches with the online portal for submitting declarations, causing delays and impacting advertiser revenue. They proposed a "single declaration letter on compliance" as a simpler alternative.

Industry representatives also highlighted the "disruption caused to programmatic advertising" due to the new mandate, according to sources.

Industry bodies have been seeking ease or modifications to the Supreme Court's recently mandated SDC for advertisements. Now that the mandate has come into effect, the slow progress in compliance rates and rising concerns regarding the lengthy process are bringing better clarity on the need for alternatives.

In a move to curb a rise in deceptive advertising practices, the Supreme Court made the SDC mandatory for all advertisements starting June 18, 2024. This landmark decision, aimed at curbing misleading advertising, requires advertisers and agencies to certify the compliance and truthfulness of their ads before release.

Despite anxieties about client confidentiality, particularly in digital advertising, and potential impacts on speed and efficiency, the industry acknowledges the need for reform. While the industry seeks tweaks, the Supreme Court's decision holds significant weight.

Experts believe it's a crucial step towards responsible advertising. "The Supreme Court's decision is the least advertisers can do in the current scenario," a source said. The SDC, even if imperfect, is seen as a deterrent against blatant violations.