Centre asks OTT platforms, TV channels to stop betting site ads

Centre asks OTT platforms, TV channels to stop betting site ads

Subject: Governance/Social Issue 

Context: Satellite TV and streaming services like Netflix and other digital media must immediately stop airing advertisements promoting gambling and betting aimed at the Indian audience, or face penal action, the information and broadcasting ministry.

Concept :

• Ministry observed that some online offshore betting platforms have started using news websites as a surrogate product to advertise betting platforms on digital media.
• According to Central Consumer Protection Authority guidelines for the prevention of misleading advertisements and endorsements 2022 (under Consumer Protection Act, 2019), surrogate advertisements are prohibited.
• It prescribes monetary penalties to the tune of Rs 10 lakh for the first offense, which can go up to Rs 50 lakh for subsequent offenses, and imprisonment of up to two years under Section 89 of the Act.

Surrogate advertising

• Surrogate advertising is the strategy of advertising a product that cannot be advertised openly. Advertisers instead create ads that help in building a brand and often involve popular celebrities – all without naming the actual product that is being indirectly advertised.
• As per the new guidelines, a surrogate ad will refer to an ad which indicates directly or indirectly to consumers that it is an advertisement for the goods whose advertising is prohibited.
• Using any brand name, logo, colour, etc. associated with goods whose advertisement is banned is also not allowed.

Central Consumer Protection Authority:

• It is a regulatory body established in 2020 based on the provisions of the Consumer Protection Act, of 2019 and works under the Ministry of Consumer Affairs.
• It frames the guidelines and rules for compliance