New Delhi: The real money gaming industry has outstripped the education sector in terms of advertising violations, as per a recent report by the Advertising Standards Council of India (ASCI). The report highlighted that 92% of the gaming advertisements reviewed during FY23 failed to comply with real-money gaming guidelines and neglected to warn consumers about the risks of financial loss and addiction. Furthermore, only half of the ads were voluntarily modified after being called out, making the gaming sector the least compliant. ASCI’s annual complaints report for the financial year 2022-23 disclosed that 7,928 advertisements across various mediums, including print, digital, and television, were scrutinized, marking a twofold increase in scrutiny over the past two years.
While print and television advertisers demonstrated a high compliance rate of 94%, the overall compliance dropped to 81% due to digital advertising. Digital ads not only accounted for 75% of the reviewed ads but also exhibited the lowest level of compliance, raising significant concerns regarding online consumer safety.
ASCI had previously issued guidelines for the real-money gaming sector in December 2020, followed by an advisory from the Ministry of Information and Broadcasting urging compliance.
The report also shed light on the alarming increase in misleading advertisements featuring celebrities. A total of 503 such ads were processed, reflecting an 804% surge compared to the previous year’s 55. Shockingly, celebrities failed to provide evidence of due diligence in 97% of the processed ads, as required by the Consumer Protection Act, exacerbating the issue due to the substantial impact that celebrity-endorsed ads have on consumers.
Influencer violations accounted for 26%, with 2,039 complaints lodged against them. Violations in the personal care, food and beverage, and fashion and lifestyle sectors topped the list concerning influencers.
“The digital advertising landscape is truly challenging us all. We will continue to act as the conscience keeper of the Indian ad industry with transparency and future-facing expertise,” stated NS Rajan, chairman of ASCI. Manisha Kapoor, CEO and secretary general of ASCI, emphasized the need for urgent action to address the prevalence of violative ads on the digital medium. She raised concerns about online consumer safety and trust, calling for advertisers, content creators, and platforms to come together and safeguard consumer interests. Additionally, the significant increase in the number of violative gaming ads demands serious attention from the industry.
