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The Advertising Standards Council of India (ASCI) has revealed a significant increase in misleading and unlawful advertisements for the first half of 2024-25, with the real estate sector topping the list of violations, accounting for 34% of breaches. Illegal betting followed at 29%, while healthcare, personal care, and food & beverage industries also contributed to the infractions. ASCI reviewed over 4,000 complaints and 3,000 advertisements, with a staggering 98% needing revisions. The report also highlighted a growing trend of advertisers settling disputes voluntarily, reducing ASCI's average response time from 30 to 18 days.
The Advertising Standards Council of India (ASCI) has published its report for the first half of the 2024-25 fiscal year, highlighting a rise in misleading and illegal advertisements, particularly within the real estate and offshore betting sectors. The real estate industry emerged as the largest offender, responsible for 34% of the violations, while illegal betting followed closely at 29%. Other sectors with notable breaches of advertising codes included healthcare (8%), personal care (7%), and food & beverage (6%).
From April to September 2024, ASCI reviewed 4,016 complaints and evaluated 3,031 advertisements. An overwhelming 98% of these ads required revisions to meet the necessary standards. The council primarily focused on digital platforms, with 2,830 ads-93% of the total reviewed-undergoing detailed scrutiny.
Out of the ads analyzed, 2,087 were found to be in violation of regulations. Of these, 1,027 were forwarded to the Maharashtra Real Estate Regulatory Authority (MahaRERA) in line with a partnership between ASCI and MahaRERA.
In the remaining 944 cases that were thoroughly investigated, 53% of advertisers chose not to contest the findings after receiving ASCI's formal notice. ASCI also examined 2,115 real estate advertisements, with 1,027 of them being reviewed for compliance with the Maharashtra RERA Act.
Earlier reports show that MahaRERA imposed fines amounting to INR 88.9 lakhs on 628 developers following the identification of misleading advertisements by ASCI. This action reflects the growing effort to hold developers accountable for deceptive marketing practices. Additionally, with an increasing trend of advertisers opting for amicable settlements rather than engaging in disputes, ASCI has significantly streamlined its operations. As a result, the average time taken to respond to complaints has been reduced from 30 days to just 18 days, showcasing the effectiveness of this cooperative approach in addressing issues more swiftly and efficiently.
In conclusion, the ASCI's report underscores the increasing challenge of misleading advertising, especially in the real estate and offshore betting sectors. The proactive steps taken by ASCI, such as stronger scrutiny of digital platforms and cooperation with regulatory bodies like MahaRERA, have helped streamline the process of addressing violations. The reduction in response times and the rise in voluntary resolutions signal a positive shift in the industry. With more advertisers opting to settle disputes, ASCI's efforts to enforce ethical advertising practices are paving the way for a more transparent and accountable market.
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