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Supreme Court Directive Mandates Self-Declaration Certificates for Advertisements

India’s Supreme Court mandates advertisers to submit self-declaration certificates, affirming non-misleading claims and regulatory compliance.

 

In a landmark ruling, the Supreme Court of India recently directed every advertiser and advertising agency to submit a self-declaration certificate confirming that their advertisements do not make misleading claims and comply with all relevant regulatory guidelines before broadcasting or publishing. This directive stems from the case of Indian Medical Association vs Union of India. 

To enforce this directive, the Ministry of Information and Broadcasting has issued comprehensive guidelines outlining the procedure for obtaining these certificates, which became mandatory from June 18, 2024, onwards. This move is expected to significantly impact advertisers, especially those using deepfakes generated by Generative AI (GenAI) on social media platforms like Instagram, Facebook, and YouTube. The use of deepfakes in advertisements has been a growing concern. 

In a previous op-ed titled “Urgently needed: A law to protect consumers from deepfake ads,” the rising menace of deepfake ads making misleading or fraudulent claims was highlighted, emphasizing the adverse effects on consumer rights and public figures. A survey conducted by McAfee revealed that 75% of Indians encountered deepfake content, with 38% falling victim to deepfake scams, and 18% directly affected by such fraudulent schemes. Alarmingly, 57% of those targeted mistook celebrity deepfakes for genuine content. The new guidelines aim to address these issues by requiring advertisers to provide bona fide details and final versions of advertisements to support their declarations. This measure is expected to aid in identifying and locating advertisers, thus facilitating tracking once complaints are filed. 

Additionally, it empowers courts to impose substantial fines on offenders. Despite the potential benefits, industry bodies such as the Indian Internet and Mobile Association of India (IAMAI), Indian Newspaper Association (INS), and the Indian Society of Advertisers (ISA) have expressed concerns over the additional compliance burden, particularly for smaller advertisers. These bodies argue that while self-certification has merit, the process needs to be streamlined to avoid hampering legitimate advertising activities. The challenge of regulating AI-enabled deepfake ads is further complicated by the sheer volume of digital advertisements, making it difficult for regulators to review each one. 

Therefore, it is suggested that online platforms be obligated to filter out deepfake ads, leveraging their technology and resources for efficient detection. The Ministry of Electronics and Information Technology highlighted the negligence of social media intermediaries in fulfilling their due diligence obligations under the IT Rules in a March 2024 advisory. 

Although non-binding, the advisory stipulates that intermediaries must not allow unlawful content on their platforms. The Supreme Court is set to hear the matter again on July 9, 2024, when industry bodies are expected to present their views on the new guidelines. This intervention could address the shortcomings of current regulatory approaches and set a precedent for robust measures against deceptive advertising practices. 

As the country grapples with the growing threat of dark patterns in online ads, the apex court’s involvement is crucial in ensuring consumer protection and the integrity of advertising practices in India.
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