New Delhi, Nov 21 : The Central Consumer Protection Authority (CCPA) is formulating regulations to prevent businesses from using corporate social responsibility (CSR) activities to indirectly promote restricted products like liquor and tobacco. Draft guidelines are being prepared to set clear boundaries on surrogate advertising practices, according to reports.

Guidelines to Define Surrogate Advertising 

The proposed regulations aim to curb brands exploiting CSR initiatives and sponsorships to promote goods prohibited from advertising. Any promotional activity, including CSR campaigns, that implies a connection to a restricted product will be classified as surrogate advertising. This includes the use of brand names, logos, color schemes, and layouts associated with such products.

Enhancing Clarity in Advertising Laws

The Department of Consumer Affairs (DoCA) has reportedly finalized the public draft for these guidelines, expected to be released between October and December. The CCPA already has regulations addressing surrogate advertising under its 2022 Prevention of Misleading Advertisements Guidelines. However, exemptions allowing brands of restricted products to promote other goods have raised enforcement challenges, prompting the need for stricter rules.

New Penalties for Influencers and Celebrities 

To further combat surrogate advertising, the CCPA is drafting additional rules targeting celebrities and influencers promoting alcohol and tobacco products. Proposed penalties include fines of up to ₹50 lakh for violations, with first offenses incurring ₹10 lakh fines.

ASCI’s Role in Monitoring Violations

In a related effort, the Advertising Standards Council of India (ASCI) reported 82 direct alcohol ads and 65 vaping or e-cigarette commercials to authorities last year, reinforcing the urgency for stricter enforcement.

The new guidelines seek to address loopholes and strengthen compliance, ensuring that CSR and advertising align with ethical and legal standards.