From broadcast bill to finfluencer rules: Key policy shifts of 2024

This year the media and advertising industry faced several regulatory and policy changes in India. The Broadcasting Services (Regulation) Bill, 2024, introduced expansive reforms aimed at regulating OTT platforms, digital news broadcasters, and social media intermediaries.

Similarly, new mandates on self-declaration certificates for advertisements created ripples in the advertising industry, emphasising accountability and adherence to guidelines. 

Meanwhile, the government has taken decisive steps to curb surrogate advertising, enhance nutritional labelling, and address the endorsement of harmful products by celebrities.

In the financial domain, the Securities and Exchange Board of India (SEBI) implemented a crackdown on unregulated financial influencers.

We look back at the significant news stories of 2024, highlighting the regulatory shifts that are shaping India’s media, advertising, and financial sectors.

Broadcast Bill 2024

The Ministry of Information and Broadcasting (MIB) proposed the Broadcasting Services (Regulation) Bill, 2024, to replace the Television Network Act of 1995. The Bill aimed to categorise influencers and social media pages that create content or engage in discussions on current affairs or news online as ‘digital news broadcasters.’

It sought to bring OTT platforms under its regulatory framework. The Bill also expands the definition of intermediaries to encompass internet service providers, social media platforms, and online search engines.

The Draft Bill was only circulated among stakeholders. The version initially released in November 2023 aimed to regulate content on OTT platforms. However, the revised draft introduced a broad definition of digital news broadcaster to include social media platforms and current affairs, among other areas. 

The draft mandated prior registration with the government and set standards for content evaluation.

It also mandated digital news broadcasters to notify the MIB about their activities and establish a content evaluation committee. 

Failure to comply with these requirements could result in significant penalties, with fines of Rs 50 lakh for the first violation and Rs 2.5 crore for subsequent violations within three years.

However, after facing intense criticism, the government withdrew the Bill on August 12. It announced that it would present a revised draft of the Bill following extensive consultations. It also intended to table it in the Parliament’s Winter session. 

Self-declaration certificates

On June 4, 2024, the Supreme Court mandated 'self-declaration' certificates for all new ads. In compliance with the directives, the MIB made it mandatory for all new advertisements to include a "self-declaration" certificate starting June 18.

The MIB launched a new feature on the Broadcast Seva Portal to simplify the submission of self-declaration certificates for TV and radio advertisements. For print and digital ads, declarations need to be submitted through the Press Council of India's portal. 

Advertisers are now required to certify that their ads do not include "misleading claims" and comply with all applicable regulatory guidelines as part of a mandatory declaration.

The new rules also mandate that agencies submit "proof of uploading" the certificate to the relevant publisher for record-keeping purposes.

No ads were allowed to air on television, appear in print media, or be published online without a valid SDC. Expectedly, this sent the whole ad industry into a tizzy. 

After nearly a month, the MIB provided much-needed clarity by issuing a new advisory stating that only advertisers and ad agencies in the food and health sector are required to upload an annual self-declaration certificate on the designated platforms.

Government vs surrogate ads

In February, the Advertising Standards Council of India (ASCI) and the Department of Consumer Affairs (DoCA) joined forces to host an interactive consultation in Mumbai, bringing together industry stakeholders from restricted categories such as alcohol, tobacco, and gambling.

The consultation tackled the widespread challenge of surrogate ads and explored ways to overcome regulatory hurdles, with the goal of ensuring stricter compliance with advertising guidelines in these sectors. 

Following this, in July, the government initiated work on new draft rules to curb surrogate advertising, prepared under the supervision of the union consumer affairs ministry.

As part of these rules, manufacturers are required to regularly submit market reports on the availability and sales volumes of the advertised products, along with certificates of sales for public viewing to verify. 

In July, the Food Safety and Standards Authority of India (FSSAI) also approved changes to nutritional information labelling on packaged food items, with the new regulations requiring that total salt, sugar, and saturated fat be displayed in bold letters and a large font size.

In August, Reuters reported that new government regulations targeting surrogate advertising for alcohol would introduce penalties of up to Rs 50 lakh for companies, while celebrities endorsing such advertisements could face bans ranging from one to three years. 

Also in August, the Ministry of Health and Family Welfare urged the Board of Control for Cricket in India to prevent sportspersons from promoting tobacco and related products.

In a letter to BCCI president Roger Binny, the ministry emphasised that tobacco advertising should be strictly prohibited at all board-sanctioned sporting events, including the IPL.

SEBI takes aim at finfluencers

In June, SEBI issued a directive prohibiting brokers and mutual funds from utilising unregulated financial influencers in their marketing and advertising initiatives.

Following a board meeting, SEBI released a statement expressing concerns about "certain persons, including unregulated entities, inducing investors to deal in securities based on inappropriate claims."

The regulator banned SEBI-regulated entities and their agents from forming any direct or indirect associations with individuals providing securities-related advice or recommendations. 

These latest regulations on financial influencers marked another chapter in a regulatory journey that began last year, when the regulator first moved to restrict brokers and mutual funds from using unregulated financial influencers in their marketing campaigns.

In August 2023, the regulator introduced more comprehensive rules that forbade registered entities from collaborating with financial influencers and sharing client information.