MIB recommends SDC exemptions for ASCI members, print & startups

The Ministry of Information and Broadcasting (MIB) has lodged an affidavit with the Supreme Court requesting that advertising agencies be exempted and that programmatic ads, online ads and user-generated content be excluded from the self-declaration certificate (SDC) framework. The affidavit, submitted by Senthil Rajan, Joint Secretary at the MIB, on August 23, 2024, proposed implementing a unified SDC across all media platforms to simplify compliance. Three weeks earlier, a bench comprising Justice Hima Kohli and Justice Sandeep Mehta directed the Ministry of Information and Broadcasting (MIB) to submit an affidavit to the Supreme Court, highlighting recommendations on the 'self-declaration certificate mechanism.

The MIB recommended that advertising agencies should not be required to upload the SDC, noting that multiple advertising or media agencies could be involved in providing services. The affidavit explained that there are three main types of ad agencies: Creative Agencies, which develop ads based on the advertiser's directives and product or service claims; Media Agencies, which handle media planning and purchasing; and Performance Agencies, which leverage data, technology, and expertise for success in the digital space. Given this complexity, the ministry suggested that advertising agencies should not be obligated or held accountable for uploading the SDC.

 Key recommendations in the affidavit:

• Consolidation of portals: The ministry proposed merging the two existing SDC portals into a single, user-friendly platform.
• Unified SDC across all media: A single SDC could be applied to all media platforms, which would reduce compliance burdens for the industry.
• Exemptions for certain entities: The ministry suggested that ad agencies, print media, ASCI members, and startups could be exempt from the SDC requirement.
• Limited scope for SDC: The SDC mandate could be restricted to advertisements for products and services in the food and health sectors to address concerns about misleading health claims.
• Trial period: The period until the final verdict in the case could be treated as a trial phase, allowing for adjustments and refinements based on practical experience.

The ministry proposed excluding 'user-generated content' from the definition of 'advertiser' and exempting online advertisements from the SDC mandate, addressing challenges in tracking and regulating online content.

These recommendations are based on feedback from various stakeholders, including advertising agencies, media companies, and industry associations. The ministry believes that implementing a unified SDC would simplify processes for advertisers and improve transparency in the advertising industry.