- In February, ASCI issued new rules requiring crypto advertisements to include disclaimers.
- SEBI sent a formal statement to the Parliamentary Standing Committee of Finance.
The Advertising Standards Council of India (ASCI) clarified its stance on a proposed ban on Indian celebrities supporting crypto items by saying it is not debating modifying its standards on crypto ads.
Outside Scope of ASCI Powers
According to a report by the Hindu Business Line, India’s Securities and Exchange Board of India (SEBI) has proposed that no important public personalities, including celebrities and notable sportsmen, should advocate cryptocurrency items and that an ad notice should include a mention about probable breaches of current laws.
According to a report in the newspaper, SEBI sent a formal statement to the Parliamentary Standing Committee of Finance outlining its position. According to Manisha Kapoor, CEO of the Advertising Council of India (ACI), this seems to be SEBI’s position in government negotiations.
Manisha added that:
“ASCI has a specific guideline on celebrities. Plus, there is a clause in the crypto guidelines as well. We have always maintained that celebrities need to do their due diligence on the claims they endorse. And the Consumer Protection Act, too, lays down penalties for endorsers in case the [ad] they feature in is found misleading, and if they have done no due diligence. Endorsers may not have domain expertise, but they must take the effort to do due diligence as part of their responsibilities.”
It is outside the scope of ASCI’s power to prohibit well-known people from recommending any items whatsoever. That power belongs only to the government. Despite this, the group’s principles are widely seen as a model to follow to safeguard Indian consumers’ interests in advertising self-regulation. In February, ASCI issued new rules requiring crypto advertisements to include disclaimers for the first time. Beginning on the first of April, the new rules took effect.
