Explained: What is surrogate advertising and what does the law say? | India News | ACTPnews

Business Standard


The Maharashtra Food and Drug Administration’s (FDA) show-cause notices to actors Shah Rukh Khan, Ajay Devgn and Tiger Shroff over a Vimal Elaichi advertisement have brought surrogate advertising back into focus.

 

The actors appeared in a 2024 advertisement for the brand. The FDA, in notices issued on August 11, said the use of “VIMAL” in the advertisement appeared to create an association with Vimal Pan Masala and could indirectly promote a product prohibited in Maharashtra. The actors have been asked to explain their role and remove promotional material.

 

So, what is surrogate advertising and what does Indian law say about it?

 

What is surrogate advertising?

 

Surrogate advertising is a way of promoting a product whose direct advertising is prohibited or restricted by law by presenting the campaign as an advertisement for another, permitted product.

  

For example, an alcohol company may advertise soda, sparkling water or packaged drinking water using the same brand name, logo, colours or advertising style associated with its liquor. The advertised product is legal, but the campaign can also help consumers recall the restricted alcohol brand. The same principle can apply to tobacco or pan masala brands. A company may promote an apparently separate product, such as elaichi, while using branding strongly associated with a restricted product.

 

In simple terms, surrogate advertising is about using a permitted product or service to indirectly promote a restricted product or its brand identity.  However, not every advertisement for a product carrying the brand name of a restricted product is necessarily surrogate advertising. The Advertising Standards Council of India (ASCI) has criteria to determine whether a brand extension is genuine. The product must have actual sales and distribution and meet prescribed turnover or investment thresholds, depending on how long it has been in the market. Its advertising spending must also be proportionate to its sales.

 

What does the law say?

 

India now has a specific definition of surrogate advertising under the Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022, issued by the Central Consumer Protection Authority (CCPA) under the Consumer Protection Act, 2019.

 

The guidelines define a surrogate advertisement as one that promotes goods or services whose advertising is prohibited or restricted by law by portraying it as an advertisement for another product or service whose advertising is allowed.

 

The guidelines expressly prohibit surrogate or indirect advertising. They say an advertisement can be considered surrogate if it directly or indirectly suggests that it is actually promoting a restricted product, or if it uses the brand name, logo, colour, layout or presentation associated with that restricted product.

 

What penalties can apply?

 

The Consumer Protection Act gives the CCPA powers to act against false or misleading advertisements. Under Section 21, the authority can order an advertiser, manufacturer, trader or endorser to discontinue or modify a misleading advertisement.

 

For a manufacturer or endorser, the penalty can extend to ₹10 lakh for a first contravention and ₹50 lakh for subsequent contraventions. An endorser can also be prohibited from making endorsements for up to one year, and up to three years for subsequent violations.

 

How does the Vimal Elaichi case fit into this?

 

The Maharashtra FDA has argued that the Vimal Elaichi advertisement could do more than advertise cardamom.

 

According to the notice, “VIMAL Elaichi” appears to create an association with the Vimal Pan Masala brand. The FDA said the advertisement could mislead consumers and indirectly promote the brand identity associated with pan masala.

 

The notice said that if the use of the Vimal name for elaichi was intended to maintain, reinforce or enhance the brand identity and consumer attraction associated with pan masala or tobacco-related products, it could amount to indirect or surrogate promotion.

 

Other examples of surrogate advertising

 

Alcohol brands have historically provided some of the most visible examples. Sparkling water, soda and packaged drinking water are commonly used as products through which liquor brands can maintain visibility.

 

Music CDs, sports sponsorships and other lifestyle or entertainment properties have also been used to keep restricted brands visible without directly advertising the prohibited product. A well-known example is Kingfisher, where advertising for packaged drinking water has been viewed in the context of the brand’s strong association with beer.

 

Another legal example involved an advertisement for All Seasons Club Soda in 2021. The Ministry of Information and Broadcasting had objected to the advertisement on the grounds that its colour and bottle layout resembled the brand’s whisky product. The matter reached the Delhi High Court in TV Today Network vs Union of India, where the question was whether the club soda advertisement amounted to surrogate advertising for whisky.

 

In December 2023, the Delhi High Court dismissed TV Today Network’s petition, upholding the government’s action against the broadcaster over surrogate liquor advertisements.

 

Recently, the ASCI has scrutinised purported brand extensions. In one 2026 case, it upheld a complaint against an advertisement for Royal Green packaged drinking water, finding that the advertiser had not provided the required documentation to establish it as a genuine brand extension rather than a surrogate for Royal Green Whisky. 

 

What laws restrict tobacco, alcohol advertising?

 

The Cigarettes and Other Tobacco Products Act, 2003 (COTPA) prohibits direct and indirect advertising of cigarettes and other tobacco products. Alcohol advertising is also restricted through provisions such as the Cable Television Network Rules.

 

For food products, the Food Safety and Standards Act, 2006 also becomes relevant. Section 24 prohibits advertisements for food that are misleading or deceptive or that contravene the Act and its rules. Section 53 provides a penalty for misleading food advertisements. 



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Search the Archives

Access over the years of investigative journalism and breaking reports