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Ministry of Information and Broadcasting files affidavit in Supreme Court seeking SDC exemption for media entities and start-ups

The Ministry of Information and Broadcasting (MIB) has filed an affidavit in the Supreme Court seeking a single Self-Declaration Certificate (SDC) for all media entities, including members of the Advertising Standards Council of India (ASCI), advertising agencies, print media, and startups.

The affidavit was filed by Senthil Rajan, Joint Secretary of the MIB on August 23, in response to a directive issued by the Supreme Court last month.

On July 9, 2024, the Bench of Justice Hima Kohli and Justice Sandeep Mehta directed MIB to submit an affidavit to the Apex Court within three weeks, highlighting recommendations on the ‘self-declaration certificate mechanism.

The affidavit contended that ASCI members already adhered to the ASCI code, which encompassed most advertising regulations in India. Besides, the print media was governed by both the Press Council of India rules and ASCI standards.

It sought exemption for programmatic ads, user-generated content and online advertisements on the grounds that the SDC mandate was impractical for programmatic ads due to their real-time bidding nature and the involvement of network agencies.

The Ministry said that there were three types of ad agencies in India – creative agencies, media agencies and performance agencies. While creative agencies developed advertisements based on advertiser mandates & product claims, media agencies handled planning & purchasing, and performance agencies used data & technology for digital success.

Thus, these agencies should not be held responsible for uploading the SDCs, given the potential for multiple agencies to be involved for a single advertiser, it added.

The affidavit proposed merging the two existing SDC portals into a single, user-friendly platform, stating thati t would reduce compliance burdens for the industry.

It said the SDC mandate could be restricted to advertisements for products and services in the food and health sectors to address concerns about misleading health claims.

The period until the final verdict in the case could be treated as a trial phase, allowing for adjustments and refinements based on practical experience, recommended the Ministry.

The affidavit submitted that the proposed adjustment underscored the MIB’s effort to streamline regulatory compliance while addressing the practical challenges faced by various media sectors.

Implementing a unified SDC would simplify processes for advertisers and improve transparency in the advertising industry, it added.

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