Millennials And Gen Z Seek Sustainable Brands: Manisha Kapoor, ASCI

In an era driven by emerging technologies and evolving consumer preferences, ensuring ethical advertising practices, protecting consumer privacy and promoting sustainability have become crucial aspects of the marketing landscape. 

In an exclusive interview with BW Marketingworld, Manisha Kapoor, CEO and Secretary General, Advertising Standards Council of India (ASCI) said that millennials and Gen Z seeking sustainable brands and building trust between consumers and brands is crucial for long-term business success.

She stated that brands are also recognising this shift in consumer preferences and are taking conscious steps to reduce their carbon footprint and appeal to this environmentally aware consumer base.

"Measures like using biodegradable or recycled packaging are being adopted to showcase their commitment to sustainability," Kapoor added. Edited excerpts:

With the rise of emerging technologies like augmented reality and immersive experiences, how do you foresee ASCI adapting its guidelines to address ethical concerns and potential challenges in regulating advertising content in these futuristic mediums?

To protect consumers in the rapidly evolving landscape of emerging futuristic technologies like AR and other immersive experiences, ASCI has already established guidelines for advertising in digital media. These guidelines are specifically designed to safeguard consumers from misleading and objectionable advertising content. One of the key focuses of these guidelines is to ensure upfront and prominent disclosure of any material connection between the advertiser and the endorser. 

To address these challenges, ASCI has been actively investing in new-age AI-based surveillance technologies. These advanced tools enable us to vigilantly monitor and report misleading and objectionable advertisements. We are committed to staying up-to-date with technological advancements in order to keep pace with the evolving mediums of communication.

As consumer data becomes increasingly valuable in the digital age, what steps do you believe ASCI should take to ensure transparency and protect consumer privacy in the context of targeted advertising and personalised marketing campaigns?

With the increasing reliance on digital media and the concern for consumer data privacy, regulatory bodies, authorities and individuals are placing significant importance on striking a balance between desirable advertisements and preventing spam, while promoting informed consent. Building trust between consumers and brands is crucial for long-term business success.

One particular practice that raises concerns is dark patterns, through which brands could manipulate consumers into making purchases, acquiring personal data without consent and even shaming users for not subscribing.

Examples of such deceptive patterns include drip pricing, where the price of a product during checkout is much higher than the initially mentioned MRP due to the addition of various undisclosed costs. Another example is disguised advertising, where the ad content is designed to resemble editorial content, making it difficult for consumers to recognise that they are being manipulated.

ASCI's new guidelines on online deceptive dark patterns emphasise the need for businesses to ensure transparency and empower consumers to make informed decisions, thereby safeguarding their interests. By focusing on transparency and informed consent, these guidelines aim to protect consumers from deceptive practices and enable them to make well-informed choices. 

The influence of social media platforms on advertising has grown exponentially. In the future, how do you anticipate ASCI's role evolving to effectively monitor and regulate advertising content on these platforms while preserving freedom of expression?

In order to effectively monitor advertising content, ASCI has implemented a digital tracking system and leverages artificial intelligence (AI) for monitoring advertisements in the digital-first world. This AI-based tracking system has significantly enhanced ASCI's ability to scrutinise digital media, even in the face of challenges such as the increasing pace of advertising campaigns and the sheer volume of ads to be processed.

To ensure consumer interests are safeguarded on social media platforms, ASCI has introduced guidelines specifically for influencers. These guidelines aim to promote honesty and transparency by mandating influencers to disclose any material connections they have with the brands they endorse.

It is important for influencers and endorsers to conduct due diligence on the products and claims before endorsing them. By holding influencers accountable for their endorsements, these guidelines contribute to maintaining consumer trust in advertising content. By implementing these guidelines, ASCI emphasises the importance of transparency, accountability, and consumer protection in the digital space. 

As sustainability and social responsibility become integral aspects of business practices, what initiatives do you envision ASCI spearheading in the future to encourage environmentally friendly and socially conscious advertising?

Millennials and Gen Z are indeed actively seeking out brands that prioritise sustainability. Brands are also recognising this shift in consumer preferences and are taking conscious steps to reduce their carbon footprint and appeal to this environmentally aware consumer base. Measures like using biodegradable or recycled packaging are being adopted to showcase their commitment to sustainability.

However, there are instances where brands make false promises and mislead consumers about the extent of their green initiatives. Claims such as '100 per cent biodegradable' when only a portion of the product is biodegradable can mislead consumers and prevent them from making informed choices.

At ASCI, we acknowledge these practices and have established a task force to gain a deeper understanding of this space. This task force will help us gather insights and knowledge before formulating specific guidelines to address this issue. The objective is to ensure that brands are transparent and honest with consumers when making sustainability claims. ASCI aims to promote advertising claims that can be substantiated with verifiable data.

With the increasing popularity of influencer marketing, how do you see ASCI adapting its guidelines to address potential issues such as misleading endorsements or undisclosed paid partnerships in a rapidly evolving digital landscape?

At ASCI, we have indeed released guidelines specifically for influencers, which make it mandatory for them to disclose any paid partnerships or material connections with the brands they endorse. These guidelines aim to promote transparency and protect the interests of both influencers and their followers. We recognise the importance of updating these guidelines regularly in consultation with relevant stakeholders to ensure their effectiveness in the ever-evolving advertising landscape.

Influencers play a significant role in shaping consumer opinions and behaviour, and it is crucial for them to understand their rights and responsibilities. By prioritising transparency, influencers can maintain the trust of their followers and protect their own interests as well.

Moreover, both brands and influencers must recognise the legal framework within which they operate. Making dishonest or unscrupulous claims in advertisements can have legal consequences, and it is essential to adhere to ethical standards and avoid misleading practices. Trust and transparency are key elements that foster strong relationships between influencers, brands, and consumers.

ASCI also collaborates closely with government officials and statutory regulators to contribute to the agenda of consumer protection.