News-CRUX-10     23rd May 2024        
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Context: Despite the Supreme Court's criticism of Patanjali Ayurved Ltd's misleading ads, Honasa Consumer Pvt. Ltd, the parent company of Mamaearth, emerged as the top advertising violator of FY24, according to the Advertising Standards Council of India (ASCI).

Advertising Standards Council of India (ASCI)

  • About: ASCI was founded in 1985 under Section 25 of the Companies Act, 1956.
  • Self-regulatory Council: ASCI is designated as a voluntary, self-regulatory council, operating as a non-profit entity.
  • Governing Bodies: ASCI comprises a Board of Governors, members of the Consumer Complaints Council, and a Secretariat.
  • Composition of the Board: The Board includes a governor and 16 members from esteemed firms, encompassing media agencies, advertisers, and advertising industry stakeholders.
  • Functions:

o ASCI has embraced a self-regulating code to safeguard consumer interests and ensure ethical advertising practices.

o The Consumer Complaints Council scrutinizes and investigates grievances regarding violations of advertising ethics and the Code of Conduct of the News Broadcasting Associations.

o ASCI actively solicits complaints from consumers regarding misleading, deceptive, or false advertisements, which are independently assessed by the Consumer Complaints Council.

o ASCI monitors advertisements across various sectors, including those promising Covid-related benefits, and has extended its scrutiny to online real money gaming ads.

o It has released comprehensive guidelines, particularly for sectors such as paints, apparel, detergents, skin care, ACs, fans, water purifiers, etc.