Self-_Regulation

Early in the 20th centaury before the advertising industry became well organized, the sharp and unethical practice of some advertisers prompted the rise of self regulation to avoid state controls. Self imposed code of ethics and procedures aim principally to curtail not only bad taste but also misinterpretation and deception as well as derogatory and unfair representation of products of competitors. Advertising and trade associations are concerned with maintaining high standards. The associations feel that it helps in maintaining good public relations. Individual media and media groups often establish their own code of ethics. Some news papers and magazines refuse to publish advertisements for tobacco and alcohol products. Most of them in varying degrees, investigate the rehability of the advertisers before accepting their copy. Some advertisers have strict rules about the presentation of advertising to prevent publication of false or exaggerated claims to prevent aesthetic tone of their publications. Television and radio likewise cooperate to avoid permitting advertising that may cause unfavorable reactions. Statutory Laws in India All those engaged in advertising are recommended to be familiar with the legislation affecting advertising in India: I) Young Person (Harmful Publications) Act 1956: (a) "Harmful publication" means any book, magazine, pamphlet, leaflet, newspaper) or other like publication which consists of stories told with the aid of pictures or without the aid of pictures or wholly in pictures, being stories portraying wholly or mainly- (i) The commission of offences; or (ii) Acts of violence or cruelty; or (iii) Incidents of repulsive or horrible nature; in such way that the publication as a whole would tend to corrupt a young person into whose hands it might fall, whether by inciting or encouraging him to commit offences or acts of violence or cruelty or in any other manner whatsoever; (b) "State Government" in relation to a-Union Territory, means the administrator thereof, (c) "Young person" means a person under the age of twenty years. II) Prize Competition Act 1955: Provides for control and regulation of prize competitions. It prohibits the prize competition where the prize offered exceeds One Thousand rupees a month. It also provides for licensing of prize of prize competition where the prize offered exceeds one thousand rupees. The Act states that a newspaper or any other publication should adhere to the provisions of the act, state the name of the state government under whose control such lotteries will be conducted and the tax and other conditions that apply with the scheme. III) Emblems and Names (Prevention of Improper Use) Act 1950: Prohibits improper use of 1) the name, official seal of United Nations, WHO, International Civil Aviation, UNESCO, International Atomic Energy. (2) The Indian National Flag, The name and emblems or official seal of Government of India, Government of State, Supreme Court, High Court, Parliament House, State legislatures, The name and pictorial representation and the seal of The President and The Prime Minister of India. (3) The pictorial representation of medals and decorations of Ashok Chakra, Param Veer Chakra etc. The Government from time to time specifies the terms and conditions about the publication and reproduction of these Emblems and Names, with the prescribed fees and the validity of the periods etc. IV) Trade and Merchandise Marks Act 1958: The law relating to trade marks in India is contained in the Trade and Merchandise Act of 1958. A Trade Mark is a mark used or proposed to be used in relation to goods for the purpose of indicating or so to indicate a connection in the course of trade between the goods and the and some person having the right either as proprietor or a registered user with or without using the identity of the person and a mark includes a device, brand, heading, label, signature, work, letter or any combination there of. Registration of Trade Mark generally gives the registered proprietor exclusive use of the mark, so that any unauthorized use will amount to infringement. Infringement shall attract both civil and criminal liabilities. V) Drugs and Magical Remedies (Objectionable Advertisements) Act 1954: Advertisement – notice, circulars, label, wrapper or other document, any announcement made orally, or by means of producing or transmitting light, sound or smoke. U/s 3 of the act deals that the advertisement carried out should state Scheduled Warnings of the drugs in use for eg: To be taken under physicians instructions, Dosages as prescribed by the doctor etc. Section 4 prohibits misleading advertisement relating to drugs. Subject to the provision of this act, no person shall take part in publication of any advertisement relating to a drug if the advertisement contains any matter which (a) directly or indirectly gives false impression regarding the true character of the drug, or (b) makes false claim of the drug, or (c) is otherwise false and misleading in any particular manner. VI) Tortious Liability: If the Advertisement is libelous the agency, which placed it, will be liable, even though its client supplied the copy of it, because it caused the advertisement to appear in the media and the media will also be responsible because they printed and published the libel. All parties leading to the publication shall be liable to legal actions. VII) Indecent Representation of Women (Prohibition) Act 1986: Prohibition of advertisement containing indecent representation of women. No person shall publish or cause to publish or arrange to take part in publication of advertisement, which contains indecent representation of women. Penalty – Contravention of section 3 & 4 shall attract imprisonment of 3 years and a fine which may extend to Rs.20, 000/-, on second conviction with imprisonment which may extend to 6 months but which may extend to 5 years and a fine which may be not less than Rs.1 lack and which may extend to Rs.2lakhs. VIII) Prevention of Food Adulteration: Every packed material of food items should contain MRP & Date of Manufacture, Weight of the food items, batch no if any and the date of expiry of the item. It should also carry the handling instructions, the quality and purity of the items. IX) Pre- Natal Diagnostic Techniques (Regulations and prevention of Misuse) Act 1994. Prohibition of Advertisement relating to pre natal determination of sex and punishment and contravention: No Person Organization, Genetic, Counseling Center, genetic labs, clinics shall issue any advertisement in any manner regarding facilities of pre-natal determination of sex is available with them. Penalties shall be punishable with imprisonment, which may extend to 3years, cancellation of license of the clinic and suspension of certificate of practice of the physician and surgeon for a period of 2 years. X) Companies Act 1956: All Companies desiring to invite from Public in the form money any deposit or subscription in their shares and debentures shall issue a prospectus, which carries the risk perception expected by the company in carrying out or completion of the project. WHY SELF-REGULATION IN ADVERTISING' In recent years the quantity of false, misleading and offensive advertising has resulted in consumers having an increasing disbelief in advertising, and a growing resentment of it. Misleading, false advertising also constitutes unfair competition. It could lead to market-place disaster or even litigation. If this kind of advertising continues, it won’t be long before statutory regulations and procedures are imposed which make even fair, truthful, decent advertising cumbersome if not impossible. This certainly will affect your ability to compete and grow. The Advertising Standards Council of India (ASCI) (1985) has adopted a Code for Self-Regulation in Advertising. It is a commitment to honest advertising and to fair competition in the market-place. It stands for the protection of the legitimate interests of consumers and all concerned with advertising - advertisers, media, advertising agencies and others who help in the creation or placement of advertisements. As the Code becomes increasingly accepted and observed pro-actively, three things will begin to happen. 1. Fewer false, misleading claims 2. Fewer unfair advertisements 3. Increasing respectability Which, only means more freedom for you to practise your craft or carry on your business effectively. As a member of ASCI, you can mould the course of Self-Regulation and participate in the protection of healthy, effective advertising. You can have a say, through the Board of Governors, in the further development of the Code and future appointments to the Consumer Complaints Council (CCC). Membership of the ASCI (open only to Firms) entitles you to appoint your nominee to discharge your function as a member, including standing for election to the Board of Governors and voting at general meetings.  Why not make Self-Regulation truly work for you' In India, as in several advanced economies, there is only ONE BODY for Self-Regulation in Advertising – the ASCI, which is concerned with safeguarding the interests of consumers whilst monitoring/guiding the commercial communications of Practitioners in Advertising on behalf of advertisers, for advertisements carried by the Media, in their endeavor’s to influence buying decisions of the Consuming Public. Advertising Standards Council of India (ASCI) OBJECTS OF ASCI |The main objects to be pursued by the Company on its incorporation are - … | |To monitor administer and promote standards of advertising practices in India with a view to. | |[pic] | |Ensuring the truthfulness and honesty of representations and claims made through advertising and safeguarding against misleading | |advertising…. | | | |[pic] | |Ensuring that Advertising is not offensive to generally accepted norms and standards of public decency. | | | |[pic] | |Safeguarding against the indiscriminate use of advertising for the promotion of products or services which are generally regarded as | |hazardous to society or to individuals or which are unacceptable to society as a whole. | | | |[pic] | |Ensuring that advertisements observe fairness in competition and the canons of generally accepted competitive behavior. | | | |  | | | |  | |Consumer Complaints Council | |The Board of Governors shall appoint Consumer Complaints Council (CCC), the number of members of which shall not be more than twenty | |one…. | |The Consumer Complaints Council shall examine and investigate the complaints received from the consumers and the general public, | |including the members of the Company, regarding any breach of the Code of Conduct and/or advertising ethics and recommend the action | |to be taken in that regards. | |  | |Power Of The Consumer Complaints Council | |Each Council shall be entitled to receive complaints from the Board of Governors, the Consumers, the general public and members of | |the Company. | |Each Council shall enquire, investigate and decide upon the complaints received by it within the frame work of the Code of Conduct | |adopted by the Company. | |All the decisions of each Council shall be by simple majority, in writing and may specify the action to be taken in respect of the | |offending advertisement. | MISSION OF ASCI ASCI has one overarching goal: to maintain and enhance the public's confidence in advertising. ASCI seeks to ensure that advertisements conform to its Code for Self-Regulation which requires advertisements to be. • Truthful and fair to consumers and competitors. • Within the bounds of generally accepted standards of public decency and propriety. • Not used indiscriminately for the promotion of products, hazardous or harmful to society or to individuals particularly minors, to a degree unacceptable to society at large. ASCI propagates its Code and a sense of responsibility for its observance amongst advertisers, advertising agencies and others connected with the creation of advertisements, and the media. ASCI encourages the public to COMPLAIN (*) against advertisements with which they may be unhappy for any reason and ensures that each complaint receives a prompt and objective consideration by an impartial committee Consumer Complaints Council (CCC) which takes into account the view point of the advertiser, and an appropriate decision is communicated to all concerned. ROLES AND FUNCTIONS OF ASCI The Role and Functioning of the ASCI & its Consumer Complaints Council (CCC) in dealing with Complaints received from Consumers and Industry, against Ads which are considered as False, Misleading, Indecent, Illegal, leading to Unsafe practices, or Unfair to competition, and consequently in contravention of the ASCI Code for Self-Regulation in Advertising. ASCI is a voluntary self-regulatory council, registered as a not-for-profit Company under section 25 of the Indian Cos. Act. The sponsors of the ASCI, who are its principal members, are firms of considerable repute within Industry in India, and comprise Advertisers, Media, Ad. Agencies and other Professional /Ancillary services connected with advertising practice. The ASCI is not a Government body, nor does it formulate rules for the public or for the relevant industries. The Purpose and the Mission of the ASCI is spelt out clearly in the literature provided. You will appreciate that if an AD is to be reviewed for its likely impact on the sensibilities of individual viewers of TV, or readers of press publications, we require to convey to the Advertiser concerned, the substantial issues raised in the complaint, in the exact context of the specific Ad, as conveyed by the perception of the complainant, and to elicit the appropriate response by way of comments from the Advertiser. As a policy we do not disclose the identity of the complainant to the Advertiser The ASCI receives and processes complaints against Ads, from a cross section of consumers, the general public and Industry, in the interests of all those who rely on advertising as a commercial communication, and this covers individuals, practitioners in advertising, advertiser firms, media, ad. agencies, and ancillary services connected with advertising. In the case of complaints which were Upheld by the CCC, during the past year, it may interest you to know that over 80% of such Ads have been withdrawn or modified appropriately by the Advertisers/Agencies involved, and the concerned Media have also confirmed that they would not carry such offending Ads/TVC. REGULATIONS OF ASCI CODE THE CODE FOR SELF-REGULATION IN ADVERTISING PERTINENT EXTRACTS Adopted by THE ADVERTISING STANDARDS COUNCIL OF INDIA under Article 2(ii)f of its Articles of Association at the first meeting of the Board of Governors held on November 20, 1985 and amended in February 1995 and in June 1999. Declaration of Fundamental Principles This Code for Self-Regulation has been drawn up by people in professions and industries in or connected with advertising, in consultation with representatives of people affected by advertising and has been accepted by individuals, corporate bodies and associations engaged in or otherwise concerned with the practice of advertising with the following as basic guidelines with a view to achieve the acceptance of fair advertising practices in the best interests of the ultimate consumer: To ensure the truthfulness and honesty of representations and claims made by advertisements and to safeguard against misleading advertisements.  To ensure that advertisements are not offensive to generally accepted standards of public decency.  Advertisements should contain nothing indecent, vulgar or repulsive which is likely, in the light of generally prevailing standards of decency and propriety, to cause grave or widespread offence. To safeguard against the indiscriminate use of Advertising in situations or of the promotion of products which are regarded as hazardous or harmful to society or to individuals, particularly minors, to a degree or of a type which is unacceptable to society at large. To ensure that advertisements observe fairness in competition so that the consumer’s need to be informed on choices in the market-place and the canons of generally accepted competitive behaviour in business are both served.  Both the general public and an advertiser’s competitors have an equal right to expect the content of advertisements to be presented fairly, intelligibly and responsibly.  The Code applies to advertisers, advertising agencies and media. Responsibility for the Observance of this Code The responsibility for the observance of this Code for Self-Regulation in Advertising lies with all who commission, create, place or publish any advertisement or assist in the creation or publishing of any advertisement. All advertisers, advertising agencies and media are expected not to commission, create, place or publish any advertisement which is in contravention of this Code. This is a self-imposed discipline required under this Code for Self-Regulation in Advertising from all involved in the commissioning, creation, placement or publishing of advertisements. This Code applies to advertisements read, heard or viewed in India even if they originate or are published abroad so long as they are directed to consumers in India or are exposed to significant number of consumers in India. RECENT DEVELOPMENT BY ASCI |Media Release | |[pic]ASCI launches National Campaign to combat Misleading Advertising | | | |[pic]Dhananjay Keskar is the new Chairman of ASCI | | | |[pic]Involvement of stakeholders, credible juries, and relevant national codes key | |    to self-regulation | | | |[pic]EASA & GOVT. Complement ASCI | | | |[pic]ASCI Code made compulsary for TV ADs | | | | | | | PROCESS OF COMPLAINT AGAINST AN ADVERTISEMENT [pic] |The GENESIS of the ASCI and its ACTIVITIES-1985 till date | |1. | |In keeping with the practice followed in almost 50 countries around the world, the Indian marketing and advertising professionals | |took the initiative of setting up a council called The Advertising Standards Council of India (ASCI), to self-regulate the content of| |advertisements. | | | |[pic] | | | |2. | |The advertisers' association, namely the Indian Society of Advertisers, the advertising agencies' association, namely The Advertising| |Agencies Association of India, the media owner's association, namely The Indian Newspapers Society, came together and took the | |initiative to form the ASCI (the council). | | | |[pic] | | | |3. | |The Council's Code for Self-Regulation in Advertising specifies that all advertising should be truthful, honest, decent, legal, safe | |for consumers particularly minors, and fair to the competition. | | | |[pic] | | | |4. | |The Council is managed by a Board of Governors consisting of 16 elected members, constituted as follows: | | | |  | |[pic] | |Four each from Advertisers | | | |[pic] | |from Advertising Agencies | | | |[pic] | |from Media, and from Allied Professions like outdoor contractors | | | |[pic] | |audio-visual producers/distributors | | | |[pic] | |consumer researchers | | | |[pic] | |printers/blockmakers, etc. | | | | | | | |[pic] | | | |5. | |The Council has been in existence since October 1985 (regd. as a not-for-profit company u/s 25 of the Indian Companies Act.) | | | |[pic] | | | |6. | |It has its own independent, fully staffed Secretariat of five members, headed by a Secretary General, who is an ex-Company Director. | | | |[pic] | | | |7. | |There is no other professional association or trade or consumer body that looks into or tries to regulate the "content" of | |advertisements published or appearing in India, other than the observance of the prevalent laws of the land. | | | |[pic] | | | |8. | |The Board of Governors appoint a Consumer Complaints Council (CCC) to examine complaints received by the Council. The composition of | |the CCC is as follows: | | | |  | |[pic] | |9 from within the advertising industry representing advertisers, advertising agencies, media owners and allied professions. | | | |[pic] | |12 from society at large, consisting of eminent consumer activists, educationists, prominent journalists, lawyers, engineers, | |doctors, etc | | | | | | | |[pic] | | | |9. | |From  time-to-time the Council puts out advertisements in newspapers, which are generally carried free of cost in the public | |interest, informing the consumers about the existence of the Council; and inviting them to complain to the Council, at no cost to | |themselves, should they find anything wrong or objectionable in any advertisement. | | | |[pic] | | | |10. | |Each year the Council receives approximately 150 complaints. Of these, about 50% are Upheld and we get a voluntary compliance rate of| |as high as above 80% (4 out of 5 such advertisements are withdrawn or modified appropriately so as not to contravene the Code). If | |the advertiser refuses to accept the verdict of the CCC, then the Council uses its good offices with media owners (particularly its | |members), and advises them of such offending advertisements, which are in contravention of the ASCI Code | | | | | | | | | |Awareness Campaigns by ASCI | |[pic] | |[pic] | | | |Dangerous Stunts#1 | |Dangerous Stunts#2 | | | | | | | |[pic] | |[pic] | | | |Obscenity | |Overclaim#1 | | | | | | | |[pic] | | | | | SELF – REGULATION IN ADVERTISING - GLOBAL PERSPECTIVE |The Rights of the Consumer…Respected by Industry …Observed by Advertising Practitioners the World over- through Self-Regulation in | |Advertising. | |“It is the recognition of the advertising industry (i.e. advertisers, agencies and the media) that advertising should be legal, | |decent, honest and truthful, with a sense of social responsibility to the consumer and society as a whole, and with due respect to | |the rules of fair competition.   This is achieved through the establishment of a set of rules and principles of best practice which | |the advertising industry voluntarily agrees to conform with. | |The aim is to keep advertising standards high and ensure consumer trust to the benefit to all. Self-Regulation works best when | |framework legislation sets and enforces the boundaries of what is unlawful. Likewise, the law operates to best effect when it tackles| |issues of broad principle. Advertising is often detailed and subjective in its claims and interpretation. Controls imposed upon it | |must be equally flexible…. Self-Regulation Organisations deal with a volume of work each year that, if disputed in court, would be | |both prohibitively expensive and unacceptably slow to resolve. The law and self-regulation working independently but in harmony, | |provide the swiftest and most comprehensive protection for consumers”- WFA Global Survey of SROs. | |  | | | | | |  | |March 15th is World Consumer Rights Day | |The UN Guidelines for Consumer Protection, reiterates the Consumer’s Right to Information which would enable the choice to make the | |most appropriate Buying Decision. | | | | | | | Setting advertising standards in India Advertising standards and self-regulation by the advertising industry is an important issue, particularly so in a country such as India where we have our share of the vigilante outfits, the self-styled moral brigade who make a hue and cry if they find any ad offensive. To improve our record, we need to compare ourselves to the rest of the world. This does not mean that there is a global barometer which sets standards on which ads are offensive and which are not but the way they do it over there holds some lessons for us. Some examples This is not to say that the ASCI doesn’t know it’s opinions. Or that the consumer is taking it all lying down. Complaints are received about flagrantly false and misleading claims. There are usually a number of complaints against almost all types of ads, from cellular operators’ misleading claims, about ads from finance companies promising high returns, to ads of creams and lotions promising the earth. At times the ASCI dismisses what it feels are frivolous complaints. For example a complaint against the Mirinda Lemon line zor ka jhatka, dheere se lage, was that it was grossly misleading. The ASCI dismissed the case. Cases relating to intra-industry grievances are common. Fena Ltd. had once lodged a compliant against Hindustan Lever Ltd., for allegedly misleading consumers by making a claim hat it’s Vim was ‘nimbu-yukt’ (with lemon). The ASCI asked HLL for an explanation about this. EXAMPLES :- Rin Vs Tide Rin Strikes Again. But for the better or worse' [pic] This is the first time that HUL has directly compared Tide with Rin. The ad even have the tagline " Rin offers better whiteness than Tide". P&G has took HUL to court over this ad. The ad was timed to coincide with the long weekend so that HUL could play the ad before the Court hearing. HUL is currently under severe pressure from its aggressive competitors. The market share of most of HUL brands has come down drastically over the last few years. The brands are facing pressure at all price points. Along with the domestic pressure, HUL is facing the heat from the parent Unilever. The Indian operations is under direct scrutiny by the Unilever CEO Paul Polman. Last year, HUL tried to restructure its brand portfolio and increased the ad spend on most of the core brands. But it could not arrest the decline of the shares of some key brands to the competitors like P&G, Godrej and ITC. This desperation has clearly manifested in the latest ad for Rin. What on earth do a brand like Rin get into a direct comparative spat with its competitor. The ET report mentions that the ad was created because HUL executives feel that Tide is slowly neutralizing the whiteness (point of difference) USP of Rin. Hence Rin is trying to tell the consumers that it has more whitening property than Tide using a direct comparison. Rin chose a wrong way of telling its superiority to the consumer. Last time I saw a direct comparative ad war was between Horlicks and Complan. Horlicks started the direct comparative ad and got a very very aggressive reply from Complan. The current status is that Horlicks stopped the comparative ad and Complan is continuing its aggression against Horlicks. It was an unnecessary move from Horlicks which woke up a laid-back competitor like Complan. I think that in that ad war, Complan won over Horlicks not in sales terms but in share of noise. The same thing is going to happen with Rin. It is going to lose this war primarily because there was no need for a direct comparison with Tide atleast in the ads. . If you observe the ad, 22 seconds of the 30 second ad is dedicated to Tide alone. That means in around 75% of the time, the ad talks about Tide. Interestingly the ad even mentions the USP of Tide as " It has fragrance and has whitening property". Then the rest of the 8 seconds talks about Rin. So if HUL has blasted some 30 lakh in the current promo, 22.5 lakh of it was spent on promoting Tide. Watching the ad, one homemaker commented " I never knew Tide and Rin was from the same company, otherwise how can they show these two brands together in the same ad' " . The current campaign lacks any long term objectives. The brand is choosing a short-term path when the issue was a long-term competitive threat. Instead of spending such money on this crap ad, HUL could have run some serious sales promotional campaigns which could have prompted consumers to opt for Rin. It could have filled the retail outlets with Rin POPs. It could have run retailer campaigns to fill the shelves with Rin rather than Tide. HUL still has a huge distribution reach and strength compared to P&G, it could have won the war hands down had it capitalized on the retailer support alone. If Rin was too worried, it could have bought back Big B as the brand ambassador which could have added punch to the tagline " Chamakte Rahna". Now the outcome of the ad war will be that HUL will be retrained by ASCII or the Court from further playing the ad . It means that Rin had adapted an unethical means against the competitor which will cause an unwarranted blemish on the brand reputation. Second outcome is that it will encourage Tide to be more aggressive in the market. Tide now has been officially and publically acknowledged as the competitor for Rin. Third outcome is that an ad war will start which will benefit the respective advertising agencies and the media. Advertising council sends notice to HUL over 'Rin' ad Press Trust of India, March 3, 2010 (New Delhi) Advertising watchdog ASCI on Wednesday said it has issued a notice to FMCG major HUL asking it to ‘substantiate’ in 15 days the claim in a TV commercial that its washing powder 'Rin' is better than rival P&G's 'Tide'. Related Stories "We have asked for HUL's response. We have give them 15 days period and we will take up the matter on March 23," Advertising Standards Council of India (ASCI) general secretary Allan Collaco told PTI. HUL's TV commercial with a tagline 'Tide se kahin behatar safedi de Rin' claims 'Rin' is better than 'Tide'. According to norms laid down by ASCI, comparisons between brands can be made only when they are scientifically and factually substantiated. "Now, it is up to HUL to substantiate the claim," Collaco said. When contacted, HUL denied receiving any notice from ASCI and said the Rin commercial is in line with advertising code followed by the industry. "The claim is factual, accurate and substantiated as it is based on laboratory tests done through globally accepted protocols in independent third party laboratories," an HUL spokesperson said. A P&G spokesperson, on other hand, said, "We are aware of the disparaging advertisement on air against Tide Naturals and have filed a case against the same. The matter is currently being heard in the court and we are not in a position to comment on the outcome." What ASCI has to say When contacted on the issue, Allan Colaco, Secretary-General, ASCI, commented, “According to the ASCI code of conduct, it is fine to show another product. But when a brand makes any such claims that his brand is better than his competitive brand, the company should have proper scientific proof on the same. However, yesterday, we’ve had a meet with the consumer body and post the meet, we have sent a letter to HUL to produce evidence sustaining their claim. We have given them two weeks’ notice. If the evidence is thorough, we keep the ad going.” When questioned if there was any pre-clearance of such ads before going on air, Colaco stated that there was no such measure as of now as there were countless ads that were aired every day. The Advertising Agencies Association of India (AAAI) HISTORY On September 21, 1945, 60 years ago, Advertising Agencies Association of India (AAAI) was registered as a society in Calcutta. 4 agencies from Calcutta – D J Keymer, General Advertising Agency, J Walter Thomson Co. and Press Syndicate – and 3 agencies from Bombay – Adarts, Lintas and National Advertising Service – were the signatories in the registrar’s office doing the honours. Initially the registered office of the Association was located at 37, Chowringhee, Calcutta. Calcutta, under the British Raj, was a vibrant commercial city. In 1961, the AAAI office was shifted to Bombay. Till the 80’s, while the Government did not encourage competition, the Government did grudgingly acknowledge the importance of communication in social aspects like in family planning programmes, nutrition, education, the modernization of agriculture and ushering in the green revolution. AAAI Members were called upon to provide support in the Government efforts in some of these critical areas. The Government also had a healthy respect for AAAI and always consulted it in matters of consequence. For example, it was at AAAI instance that the Government permitted foreign equity holding in ad agencies in the late 80’s. Whenever required, AAAI has stepped in to protect its business interests to regulate orderliness in the industry. It has been intrumental in restoring the 15% commission/trade discount for Government business in Government owned media, or in lobbying for removal of tax on advertising way back in 1965 and subsequently in 1978 and 1983, or during the most recent Fringe Benefit Tax where advertising and promotion was included as Fringe Benefit! AAAI’s contribution in regulating the industry is no less significant. In 1987 when TV sponsored programmes became a reality, it determined how the income should be shared between the placing agency and the creative agency. In 1988 and again in 1990, AAAI was actively involved in determining the procedures and policies of the electronic media i.e Doordarshan. In 1983, AAAI was involved in a serious dialogue with Indian Newspaper Society (INS) when the credit period was proposed to be reduced from 75 to 45 days. Finally we agreed on 60 days, with the rider that "no changes would be made in the Accreditation Rules without mutual consultation and consent" of INS and AAAI. In 1991, when the proposal came to reduce this 60 days to 45 days, it was persuasively defended. Since then INS and AAAI meet regularly with respect to matters that concern both bodies. AAAI has been behind the National Readership Survey as a joint industry initiative in collaboration with INS and ABC. Having felt the need for a self-regulating body in Advertising, AAAI was highly supportive to the formation of Advertising Standards Council of India (ASCI). Similarly, AAAI encouraged the formation of Indian Broadcasting Foundation so that it could address the needs of TV channels. About 4 years back, AAAI signed a unique Agreement with IBF, which codified the working relationship between the members of IBF and AAAI in the matter of placing and paying for the ads. This initiative has been a resounding success for both sides. AAAI enjoys a healthy relationship with Indian Society of Advertisers (ISA). Time and again, AAAI has been called upon by its members to resolve disputes with advertisers for which formal Arbitration proceedings have been conducted. AAAI also assists our members to collect payment from defaulting advertisers. In summary, AAAI, over the last six decades, has stood by its members and have protected their business interests, be it in dialogue with Government, media bodies or advertisers; AAAI has regulated its members in the orderly conduct of their business affairs, whenever the need arose; And last, but not the least, AAAI provided a platform for training of advertising professionals, recognition of creative work through its coveted Triple-A Awards and honouring outstanding advertising men through its AAAI-Premnarayen Award. AAAI has thus come a long way from its humble beginnings 60 years ago. But as they say, the future is always more exciting than the past. AAAI is alive to the changes that the future holds out and the next decade would be a stimulating period, ushering the advertising industry in newer challenges and opportunities. MISSION- OBJECTIVES The Advertising Agencies Association of India (AAAI) is the official, national organisation of advertising agencies, formed to promote their interests so that they continue to make an essential and ever-increasing contribution to the nation, by working towards the following objectives: • To benefit Indian consumers and to protect their interests by helping ensure that advertising is honest and in good taste. • To benefit Indian advertisers by promoting their sales, increasing their sales and increasing productivity & profitability, to stimulate business and industrial activity. • To benefit media by establishing sound business practices between advertisers and advertising agencies and each of the various media owners. • To benefit the nation by harnessing advertising for the good of the country, its institutions, its citizens; to co-operate with the Government in promoting its social objectives and in the task of nation-building. • To question advertising that is wasteful and extravagant; to make it possible for the small entrepreneur to grow through advertising and to compete with the biggest; to encourage market and media research; to serve society by meeting its social responsibilities. • To encourage the interest of young individuals in the business of communication, to assist in education and training programmes and to provide information of benefit to members. Non-members are also provided this service for a fee. • To establish a common platform in building and sustaining the prestige of the advertising profession and to serve as a spokesman against unwarranted attacks or restrictions on advertising. • To establish a forum where representatives of advertisers, advertising agencies, media owners and Government can meet on mutual ground and examine problems of mutual concern. • To offer effective co-operation and liaison with Government officials and bodies for the purpose of broadening their understanding of the role of advertisers, advertising and advertising agencies. • To co-operate with Government bodies in discussion of matters such as taxes, radio and TV advertising, legislation, political campaign advertising, controls on pharmaceuticals, tobacco or liquor advertising and other subjects of similar complexity and sensitivity. The AAAI today is truly representative, with a very large number of small, medium and large-sized agencies as its members, who together account for almost 80% of the advertising business placed in the country. It is thus recognised at all forums -- advertisers, media owners and associations, and even Government -- as the spokesperson for the advertising industry. TASK The AAAI's activities cover all areas of vital importance to the advertising industry. Some of these include: Government & Public Relations: Improving the image of the advertising industry and focusing on its role in economic development and employment through campaigns, seminars, press relations and direct contact with Government ministries. IBF/Doordarshan & AIR/Other FM Channels: Protection of members' interests on issues related to Guidelines and Rules of Commercial Broadcast, Sponsorship, Rates, Commission and Accreditation; working towards full service operations at all TV Channels/Doordarshan Kendras and Radio Channels; setting up an independent monitoring body for commercials. INS: Protection of members' interest in matters relating to INS policies, credit periods, Rules for Accreditation and streamlined operations; promotion of better production values and effective advertising purchases. Professional Practices: Improving the quality of professional relationships between Agencies and Clients through seminars, the AAAI Handbook and the evolution of uniform guidelines, codes and norms. Client Disputes: Helping settle disputes through evolution of guidelines, procedures and uniform practices; mediating between agency-client, agency-agency and agency-media to ensure quick resolution of disputes. Statutes and Laws: Constantly examining all relevant laws and statutes affecting the advertising industry including ESIS, Sales Tax, other taxes, Arbitration, MRTP guidelines; seeking professional advice and presenting a common viewpoint at relevant forums to protect members' interests; pursuing new avenues like Credit Insurance cover, etc. Training & Development: Organising seminars and workshops on effective advertising skills in creative, copy-writing, print and production, client servicing, television production, media operations, media planning, advertising as a career, etc; maintaining a fully-stocked reference library with a reprint service for members. Member Communications: Constantly communicating with members through circulars and correspondence; periodic publication of an updated membership directory, regular regional meetings for members and their employees. Public Service: Offering the services of the Association and members in significant projects, e.g. for Family Planning, the National Wastelands Development Board, Gujarat Earthquake relief, etc; encouraging the creation of such advertising by members. There are innumerable instances of successful AAAI activities, with benefits to the entire advertising industry and all others associated with it. STRUCTURE The AAAI functions through the active, voluntary services of a President, a Vice-President, an Honorary Secretary, an Honorary Treasurer and an Executive Committee assisted by a full-time Secretary-General and his staff. The Association maintains a permanent office, which is located at: 35 Maker Tower 'F', 3rd Floor, Cuffe Parade, Mumbai 400 005. Conventionally, a very senior agency person represents each member agency in the AAAI. The President and other office-bearers are elected every year by the General Body, which comprises all representatives of member agencies. In addition, some Executive Committee Members are co-opted to the Executive Committee and an effort is made to ensure that all zones and groups of agencies (by size) are represented on this Committee. Assisting the above groups are various Sub-committees, each looking after specific activity areas of the Association, and Regional Convenors who co-ordinate members' activities in different regions of the Country. The Executive Committee, the Regional Convenors and various Sub-Committees meet very regularly and information is constantly shared with all members. The AAAI is thus a true association, in the sense that nearly half of all members are directly involved with one or more of the active committee groups and the remaining members are in touch through direct communication. Do’s and Don’ts for Indian Advertisers – Codes laid down by AAAI (Association of Accredited Advertisers of India) Don’ts Individual media and media groups should preferably establish their own codes of ethics. Some newspapers and magazine refuse to publish advertisements for tobacco and alcohol beverages. Most of them investigate the reliability of the advertisers before accepting their copy. • Do not possess, sell, and let to hire or otherwise promote circulation of any harmful publication involving Young person in any part of India. (Young Persons (Harmful Publications Act, 1956). • No Prize competition for prizes exceeding Rs.1000/- a month should be held without a license. • Advertisements – textual, pictorial, graphical or otherwise should not generate hatred, contempt or dissatisfaction towards Government or between different classes of citizens in India. • Do not use in advertisement the name, emblem or official seal of the United Nations and of some of the specialized agencies, and also Indian National Flag, the name and emblem or official seal of Government of India, or Supreme, High Courts, Rashtrapathi Bhuvan, Pictorial representation of The President and the Prime Minister of India without the written permission for the concerned dept and the officials. • Avoid use of unauthorized use in the advertisement another organization’s trademark. This may attract civil and criminal liabilities. • Advertisement should not carry any misleading information regarding usages and magical cures of certain diseases. • Advertisement to get protection under Copyright Act, 1957 must be original. So it must not be copied from another or must not be from public domain. • No representation of women in an indecent and Obscene manner. • Do not claim orally; through advertisement or by way of a product label your product to be of quality, which it does not possess. You will be held responsible for canvassing products of less purity. • Advertisers not to quote the name of Indian Government Agency responsible for conducting, analyzing or carrying out any research related matters. • You are not to willfully disobey any order, decree, judgment or process of the court – it shall amount to contempt of court. • Advertisement should not violate the rights of consumers in regard to safeguarding them from exploitation, or stop consumers seeking redressal against unfair trade practices from Consumer Councils. • Under the Representation of People Act, publicity, propaganda in any way in connection with the election should not be carried out or entertained 48 hrs before the commencement of the election. • Do not publish; advertise objectionable, unethical advertisements encouraging self-medication and self-treatment. • Do not be a party to pasting bills in public places. • Do not put the advertisement directly or indirectly interfering with other’s property, privacy, obstructing their views etc. • Don not obstructs a place to which the public has an access, nor should erect dangerous structure near the highway. • Do not publish advertisement with obscene pictures meant merely to make money by titillating the sex feelings of adolescents and adults among whom the newspaper circulates or which constitute unwholesome exploitation of sex for money. • No misleading advertisement relating to magical cures by quacks and tantriks. • No advertisements relating to eateries invoking god’s names. • Not to issue advertisement like “Dial-a-friend – Enjoy”, in order to corrupt young minds. • Not to use the name of famous personalities, Institutions, which could be seen in poor, light or bring them in some sort of disrepute. • Not to publish irrelevant maps, pictorial representation without actual verifications as to the scale etc. Do’s • Self-regulation by the advertising industry is better than State Control. • Advertising trade association should be mainly concerned with maintaining high standard. • Radio and television should cooperate closely to avoid permitting advertising that may cause unfavorable social reactions. • Newspapers should publish tariff charged for each advertisement to ensure that no unusual fee over and above market rate are charged. • Newspapers to make sure that all issues carry the advertisements in all their editions. • Editors should own full responsibilities for advertisements and editorial maters published in their newspapers. • Editors to assert their right to accept or reject advertisements especially to those, which cross the line of decency. • Abide by the Doordarshan and AIR Advertising codes.