The document discusses the ethical and legal aspects of advertising. It begins by defining advertising and describing the various media used. It then discusses some of the criticisms of advertising, including that it can be misleading to consumers. The document outlines the social, economic, and ethical considerations regarding advertising. It also describes the various laws and regulations around advertising in India as well as the self-regulatory organization called ASCI that aims to ensure advertising is truthful, legal, and decent. Complaints from consumers about advertising can be submitted to ASCI.

1. Ethical and Legal Aspects of Advertising

2. WHAT IS ADVERTISING
1. Advertising is any form of paid non - personal presentation of idea,
goods or services by an identified sponsor.
2. Advertising messages are usually paid by sponsors and viewed via
various media; including traditional media such as newspaper,
magazines, television, radio, direct mail; or new media such as
websites and text messages.

3. ADVERTISING
• Advertisement has been accused of many crimes- social, economic, and
moral.
• Unfortunately despite several laws meant to protect consumer against
such unfair trade practices, false and misleading advertisement continue
to exploit the consumers. A numbers of institutions are involved in
regulating advertisement.
• SOCIAL - aspects of advertising
• Advertising as a part of firm’s marketing effort operates in the society. It
has to therefore operates in the society. It has to therefore follow the
social norms.

4. ECONOMIC ASPECTS OF ADVERTISING
1. Making Consumers Aware of Products and Services
2. Providing Consumers With Information to Use to Make Purchase Decision

5. ETHICAL ASPECTS OF ADVERTISING
• Ethics are the moral standards against which behavior is judged.
• Key areas of regarding ethics and advertising are:
1. Truth in advertising
2. Advertising controversial products [Tobacco, alcohol, gambling and
lotteries]

6. In INDIA, the Laws and Regulations Regarding
Advertising
A. LEGISLATION AFFECTING
ADVERTISING.
1. The INDIAN Penal Code [IPC], 1860
2. Drugs And Cosmetics Act, 1940
3. Drugs Control Act, 1950
4. The Drugs and Magic Remedies
[Objectionable Advertisements ] Act, 1954
5. The Young Persons [ Harmful Publications ],
Act 1956
6. The indecent representation of women [
Prohibition ] Act, 1986
A. SELF- REGULATORY CODES OF
CONDUCT IN ADVERTISING.
• ASCI [ Advertising Standards Council Of
INDIA ]

7. LEGISLATION AFFECTING ADVERTISING
7. The Emblems and Names
[ Prevention of Improper use ] 1950
8. The Prevention of Insults to the Nation
Honour Act, 1971
9. The Prize Competitions Act, 1955
10. The Prize Chits and Money circulation
Schemes [ Banning ] Act 1978
11. The infant Milk Substitutes, Feeding Bottles
and Infant Foods [ Regulation of Production,
Supply and Distribution ] Act, 1992
12. The Indian Copyright Act, 1957
13. Trade Marks Act, 1999
14. The Pharmacy Act, 1948
15. The Monopolies and Restrictive Trade
Practices [ MRTP ] 1984
16. The consumer Protection Act, 1986
17. Broadcasting Services Regulation Bill, 2006
18. The Cable Television Networks [ Regulation ]
Act 1995
19. Cigarettes and Other Tobacco Products [
Prohibition of Advertisement and Regulation
of Commerce, Production, Supply and
Distribution] Act, 2003

8. SELF- REGULATORY CODES OF CONDUCT IN
ADVERTISING.
• ORIGIN
• Like other countries around the world, India too has a self-
regulatory organization (SRO) for advertising content – The
Advertising Standards Council of India, ASCI founded in 1985.
The four main constituents of advertising industry viz advertisers,
advertising agencies, media and allied professions came together to
form this independent NGO. The aim of ASCI is to maintain and
enhance the public's confidence in advertising. Their mandate is
that all advertising material must be truthful, legal and honest,
decent and not objectify women, safe for consumers - especially
children and last but not the least, fair to their competitors.

9. Members of ASCI
• ASCI’s team consists of the Board of Governors, the Consumer Complaints
Council (CCC) and its Secretariat.
• ASCI has 12 members in its Board of Governors, four each representing the
key sectors such as Advertisers, advertising agencies, media and allied
professions such as market research, consulting, business education etc.
• The CCC currently has about 21 members: 9 are from within the industry and
12 are from the civil society like well-known doctors, lawyers, journalists,
academicians, consumer activists, etc. The CCC’s decision on complaint
against any ad is final.
• ASCI also has its own independent Secretariat of 5 members which is headed
by the Secretary General.

10. Members of ASCI continue…
• There is no other non governmental body in India which regulates the
advertising content that is released in India.
• If an ad that is released in India seems objectionable, a person can write to
ASCI with their complaint.
• This complaint will be deliberated on by the CCC after providing due process
to advertiser to defend the ad against the complaint and depending on whether
the ad is in alignment with the ASCI code and law of the land, the complaint is
upheld or not upheld and if upheld then the ad is voluntarily either withdrawn
or modified.
• In 2007, the Government of India amended the Cable TV Network Rules’
Advertising Code by which ads which violate ASCI code cannot be permitted
on TV.

11. Self- Regulation
• Almost all professional fields have self-regulatory bodies governing their activities. For the
advertising fraternity, until 1985 there was none. Due to this there was a lot of false,
misleading and offensive advertising. This led to consumers losing faith in advertising and
hence resenting it. It was decided that if this continued it would not take time for statutory
regulations such as censorship to be imposed on advertising content.
• In 1985, ASCI to be imposed on advertisers and advertising agencies. This would make fair,
truthful and decent advertising almost impossible which would in turn hinder the industry’s
ability to compete and grow.
• In 1985, the ASCI adopted a Code for Self-Regulation in Advertising. With the introduction
of the code, the aim is to promote honest and decent advertising and fair competition in the
industry. It will also ensure the protection of consumer interests and the all concerned with
the ad industry - advertisers, media, advertising agencies and others who help in the creation
or placement of advertisements.
• As the fraternity starts accepting the code, it will result in fewer false claims, fewer unfair
advertisements and increased respect for advertisers

12. Need of ASCI
• When an advertiser is creating an ad, the consumer is his audience. The
feedback from a consumer is important to the advertiser so he can be
assured if his message has been correctly conveyed. If a consumer feels
that a particular advertisement is in bad taste or is false in its claims, they
need a body or council to whom they can air their grievances and who
will take any appropriate action, if necessary. ASCI as a self-regulatory
body governing advertising content is the ideal medium as its purpose is
to serve both the advertisers as well as the consumers.

13. How to Complain ASCI

16. The standards of conduct laid down by ASCI
• Four Chapters of code minimum standards of acceptability.
1. Chapter [ Deals with truthfulness and honesty of representations and
claims ]
2. Chapter [ Deals with decency of advertisements ]
3. Chapter [ Deals with safeguarding against hazardous or harmful
advertisements, particularly to minors ]
4. Chapter [ Deals with fairness in competition ]