Meta clarifies confusion regarding alcohol and gambling ads

On Thursday, Meta addressed the confusion surrounding its WhatsApp business messaging policy update, which caused concern due to the inclusion of alcohol and gambling ads—both prohibited in India.

The story was initially reported by Storyboard18, citing an alleged email from Meta that stated, “We are excited to announce that starting August 27, 2024, businesses in India, APAC, and LATAM can onboard the WhatsApp platform for messaging in the following verticals: a) Alcohol b) Over-the-counter products (Prescription drugs and medical devices are still prohibited) c) Real Money Gambling.”

This led to widespread discussions among industry experts about the potential implications and concerns of the policy. Meta responded with a formal statement to clarify the situation.

A Meta spokesperson explained, "When we set business policies for our service, we respect local laws, and therefore certain business messaging or other types of communication are not going to be allowed in certain countries, including India. The referenced communication lacked the precision that is reflected in our formal policies and documents."

In India, advertisements or messages promoting alcohol are strictly prohibited. Liquor and gambling companies often rely on surrogate advertising to bypass regulations. With the ban on direct liquor advertisements, surrogate advertising has been a go-to strategy for these companies. The government is now intensifying efforts to crack down on these practices as well.

In March 2024, the government issued a directive to alcohol companies and industry associations to limit surrogate advertising, just before the IPL season—a time known for a surge in such ads on social media and TV. Soon after, Reuters reported that the government is considering a ban on liquor manufacturers using surrogate advertisements and sponsoring events for their primary alcoholic products. 

Meta's policy on gambling advertisements requires advertisers to seek permission through a form on their official website, with approval granted to specific ad account IDs. Even with approval, ads cannot target individuals under the age of 18. However, there remains some ambiguity regarding this policy. The Advertising Standards Council of India (ASCI) mandates that online real-money gaming ads include disclaimers and warnings, avoid targeting minors, and accurately represent the risks involved. Meta has yet to release a comprehensive policy on advertising for gambling and alcohol content on its platforms including WhatsApp.

As of now, companies in the regulated sector are not allowed to communicate via the WhatsApp Business app or provide any commercial purchase experiences for their products. States like Karnataka permit ads related to fantasy sports and skill-based games, while others like Assam, Andhra Pradesh, Odisha, and Telangana enforce a total ban on such ads.