The IAMAI has filed a petition urging the Supreme Court of India to overturn new regulations requiring advertisers to submit self-declaration certificates before running ads across various platforms. Implemented on June 18, these rules aim to combat misleading ads but are contested by IAMAI for their perceived threat to the digital economy’s growth.
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NEW DELHI: The Internet and Mobile Association of India (IAMAI) has recently filed a petition with the Supreme Court of India, seeking to overturn the newly implemented regulations that mandate advertisers to submit self-declaration certificates before running advertisements on television, print, or online platforms. These regulations, which came into effect on June 18, are designed to curb misleading advertisements but are seen by the IAMAI as potentially harmful to the growth of the digital economy.
The IAMAI, a nonprofit organization with approximately 600 members from various sectors, including startups and multinational corporations, has voiced its concerns through this legal challenge. According to the details obtained by Mint, the association argues that while the intent to prevent deceptive advertising is commendable, the new rules could severely disrupt the online advertising ecosystem.
The petition filed by IAMAI highlights the critical role of online advertisements in enabling businesses to measure and adjust their advertising campaigns in real-time. This flexibility allows for more effective targeting and enhanced sales outcomes.
The association’s petition states-
“Online advertisements play a crucial role for businesses, allowing them to flexibly measure and adjust their campaigns, leading to enhanced targeting and improved sales outcomes.”
IAMAI argues that the new regulations could slow down or even halt online ad campaigns, leading to significant setbacks for businesses that rely heavily on digital marketing strategies.
The petition elaborates-
“Requiring mandatory self-declaration certificates before advertising could cause significant delays, potentially hindering the flexibility and effectiveness of online marketing campaigns.”
The association underscores the importance of maintaining a balance between preventing misleading advertisements and supporting the robust growth of the digital economy.
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IAMAI’s petition emphasizes-
“While preventing deceptive advertising is crucial, it’s equally vital to ensure that regulations support rather than hinder the dynamism and growth potential of the online advertising sector.”
The new regulations, according to IAMAI, pose a significant risk to the fluid and rapid nature of digital advertising.
The association cautions-
“Requiring pre-approval via self-declaration certificates could introduce bureaucratic obstacles, slowing down the execution of advertising campaigns and impacting market responsiveness.”
IAMAI’s membership comprises a diverse group of stakeholders, including tech giants, media companies, and numerous startups that are instrumental in driving innovation within the digital space.
The petition asserts-
“Our diverse membership, ranging from startups to multinational corporations, collectively drives innovation and growth in the digital advertising landscape. The new regulations pose a threat to this ecosystem.”
The Supreme Court’s decision on this matter will be crucial in determining the future framework of advertising regulations in India. IAMAI’s petition aims to ensure that while measures to prevent misleading advertisements are enforced, they do not come at the cost of hindering the digital economy’s progress.
The association concludes-
“We advocate for a regulatory environment that strikes a balance between consumer protection and the vitality of a thriving digital advertising sector.”
The digital advertising sector is currently facing scrutiny as industry experts and associations push for more effective enforcement of existing laws rather than introducing new regulations. The central issue revolves around the volume and nature of digital advertisements, which far exceed those seen on traditional platforms like television, print, or radio.
“The primary concern lies in digital advertisements, which are produced in significantly higher volumes compared to TV, print, or radio ads. For instance, if a company releases 20 digital ads in a day, complying with the self-declaration requirement could require extensive resources, potentially hindering the inherent advantages of digital ads such as speed and adaptability.”
– explained a tech policy and legal consultant from Delhi.
This highlights the unique challenges that digital platforms face, where rapid adaptation and swift dissemination of content are crucial.
The Internet and Mobile Association of India (IAMAI) has been vocal about the potential impact of imposing new restrictions on digital advertisements. According to IAMAI, current laws such as the Information Technology Act and Consumer Protection Rules already offer a robust framework to tackle misleading advertisements online.
The association argues that-
“Enhancing enforcement of existing laws would be more effective in safeguarding consumers, rather than imposing new restrictions.”
The petition from IAMAI also emphasizes the economic significance of digital advertising, especially during the COVID-19 pandemic. During this period, many businesses had to pivot to online operations, making digital ads a lifeline for economic activity. The role of online advertising in fostering economic opportunities cannot be overstated.
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A recent report by GroupM forecasts that –
“Digital advertisements are projected to account for 57% of total advertising revenue in India by 2024.”
underscoring their critical importance to the nation’s economy. This projection highlights the growing reliance on digital platforms for advertising revenue and the necessity of a balanced regulatory approach that does not stifle innovation or economic growth.
