Suspicious Healthcare Ads in India, ET BrandEquity

The significant issue of healthcare advertising in India has been brought back to the fore by the recent furore surrounding Patanjali Ayurveda, a leading Indian FMCG (Fast Moving Consumer Goods) company notorious for its Ayurvedic products and misleading advertising. While the Patanjali case is a high-profile example, it only scratches the surface of a much larger problem: a pervasive culture of questionable healthcare advertising, fuelled by a lack of stringent regulations and consumer awareness. A Pervasive Problem

A report released by the Advertising Standards Council of India (ASCI) paints a dicey picture: In its May 2024 report, the council received a staggering 81% of complaints about misleading claims in advertisements, with the healthcare sector topping the list and being the most frequently violating sector.

What is most surprising and shocking about the report is that baby care products have made it into the top 10 violator categories for the first time, even being promoted by celebrities and social media influencers. Moreover, digital media continues to be the main source of violations, accounting for 85% of advertising, with compliance rates remaining low at 75% compared to print and TV at 97%.

This has raised serious concerns about the online space and customer safety. One of the main reasons for this situation is that social media influencers are not conducting due diligence on their marketing campaigns, despite it being required by the Consumer Protection Act, 2019.

Companies often take advantage of the fact that people today need a “quick fix” for every problem, so some companies see this as an opportunity by exaggerating the benefits of the products they offer. False advertising promising miracle cures or solutions to long-term ailments causes people to delay necessary medical treatment.

In addition to this, the emergence of digital advertising has brought new grounds for unsubstantiated claims, making regulation and corporate accountability even more difficult. False healthcare advertising has a profound impact as it can discourage individuals from seeking appropriate medical care by encouraging the practice of self-diagnosis and reliance on untested drug claims.

Beyond Patanjali: Systemic Issues

The Patanjali case and the subsequent ASCI report on misleading advertising, 2024, is good news for us as it has highlighted the menace. This is not the first time that law enforcement agencies have been forced to step in to curb the dissemination of misleading advertisements by FMCG companies. Advertising campaigns by market leaders like Hindustan Unilever, Dabur India, Emami Biotech, Kellogg India and Cadbury India through various celebrities have come under regulatory scrutiny for making inflated promises. It is common for organizations to use vague words like “natural” and “healthy” to mislead customers.

To name a few, Nestle was fined for misleading labelling of Maggi noodles, Bournvita reduced the sugar content after a social media video went viral, and Davar was specifically asked to remove an advertisement for Chyawanprash that claimed just two spoonfuls could protect you from COVID-19. India’s current regulatory framework appears inadequate to effectively address this issue.

Despite its important role, ASCI operates with limited powers and relies on a complaint-driven approach, which often leaves potentially misleading advertisements unregulated in large numbers. Though various guidelines have been notified, their implementation poses a challenge due to the nature of digital platforms and directories.

Additionally, the healthcare industry lacks clear regulations regarding advertising and has a fragmented legal framework regarding advertising – a weakness that companies are exploiting for profit.

Towards a solution

A comprehensive approach is essential to address this issue. Besides streamlining the complaints process, granting additional investigative powers to the ASCI is essential to making it a stronger institution.

Moreover, setting up a dedicated regulatory body for healthcare advertising as in other countries could strengthen monitoring and enforcement capabilities. The Supreme Court recently ruled in the Patanjali case that even influencers and celebrities can be held liable if they are found promoting products with misleading claims. Stiffer penalties for violations would also be important and clear and simple standards defining false representations in healthcare advertising would also act as a deterrent.

Beyond that, raising awareness through advocacy programs may encourage consumers to question the veracity of healthcare marketing and seek trustworthy advice from qualified medical professionals.

Essentially, an ethical advertising culture must be embraced throughout the advertising industry. With the size of the market constantly changing, it goes without saying that the need for self-regulation mechanisms through stricter industry standards is now a necessity.