MIB Proposes Exemptions For Ad Agencies, Print, ASCI Members & Startups From SDC: Report

The Ministry of Information and Broadcasting (MIB) submitted an affidavit to the Supreme Court on 23 August, proposing a unified Self Declaration Mandate (SDC) for all media. The recommendation includes consolidating all advertisements for the food and health sectors into a single portal.

According to the report, MIB suggested exempting ad agencies, print media, ASCI members and startups from the SDC requirements. The ministry also proposed that the period leading up to the final verdict be considered a trial phase.

The affidavit follows a Supreme Court order directing MIB to provide recommendations on the SDC mechanism for advertisements within three weeks. Justice Hima Kohli and Justice Sandeep Mehta, who presided over the case, requested the affidavit outlining these recommendations.

“Let the copies of the affidavits be furnished to the amicus and any non-compliance by states shall be informed to this court and let a note be submitted before the next hearing", said the Supreme Court.

The Court's intention is not to cause any harm but to target specific sectors and aspects. Any extraneous interpretations will be clarified, according to the Apex Body.

Senthil Rajan, Joint Secretary at the MIB filed the affidavit requesting exemptions for ad agencies and exclusion of programmatic ads and user-generated content from the SDC system. Rajan explained that creative agencies develop ads based on advertisers' mandates and product claims while media agencies handle planning and purchasing and performance agencies use data and technology for digital success. Therefore, he argued that these agencies should not be required to upload SDCs as a single advertiser might work with multiple agencies.

Rajan also stated that programmatic ads, which are managed through network agencies and real-time bidding on digital platforms should be exempt from SDC requirements. Additionally, he emphasised that user-generated content and online ads should be excluded from the SDC system.

In the affidavit, Rajan proposed several exemptions to SDC. He recommended exempting ASCI members due to their consistent adherence to the ASCI Code, which aligns with various national ad laws. Rajan also suggested that print media be excluded from the SDC requirement as it already follows regulations set by ASCI and the Press Council of India.

Furthermore, the affidavit recommended restricting the SDC mandate to ads related to medical products making misleading health claims, specifically ayurvedic products. It also called for a user-friendly, single portal accessible to relevant stakeholders.

The affidavit included input from various industry associations, including the Association of Radio Operators for India (AROI), Internet and Mobile Association of India (IAMAI), Broadband India Forum (BIF), Indian Newspaper Society (INS), Indian Society of Advertisers (ISA) and the Advertising Agency Association of India (AAAI). They advocated for a single portal and suggested that the responsibility for SDC compliance should lie with private companies and advertisers, rather than ad agencies.