Surrogate ads: CCPA asks liquor makers to give products list sold under alcobevs brand in 15 days

New Delhi: Concerned over surrogate ads in the alcohol industry, consumer watchdog CCPA has asked liquor manufacturers to submit within 15 days a list of products sold under the same brand as the alcoholic beverages.

The Central Consumer Protection Authority (CCPA) has issued a direction to the alcohol industry to submit details regarding the business activities related to brand extensions associated with products which are prohibited from promotion under the current laws, sources said.

The CCPA has mentioned that 'The 2022 Guidelines for Prevention of Misleading Advertisements and Endorsements' issued by them explicitly forbid surrogate advertisements.

The regulator, however, said the guidelines allow the promotion of other products using the same brand name or logo as the prohibited product, provided that such ads adhere to the guidelines' provisions and are not deemed objectionable.

The guidelines permit genuine brand extensions.

However, sources said, the CCPA has identified numerous instances where liquor brands are violating existing regulations.

It has found many instances where alcoholic beverages are being advertised in mainstream media under the pretence of promoting other products or services associated with the same brand.

The regulator said these ads incorporate elements such as slogans, brand imagery, layout, and context that are closely linked to the liquor brand and spend disproportionately versus the business size, thus promoting alcoholic beverages in a manner that circumvents the current laws.

Seeking to curb surrogate ads, the CCPA has directed all alcoholic beverages companies to furnish within 15 days details related to business activities with year-wise break-up.

The CCPA has sought a list of products sold under the same brand as the alcohol beverage (known as brand extensions) for the past three years, along with details of the states where these products were marketed.

It has also directed the alcohol makers to furnish revenue and turnover data specifically related to the sale of brand extension products over the past three years.

The industry has also been told to share revenue and turnover data related to the sale of alcoholic beverages over the past three years.

The CCPA has asked them to share details of the total expenses incurred on promoting brand extension products, which includes costs associated with collaborations, sponsorship events, award ceremonies, music festivals, TV advertisements, social media promotions, payments made to celebrities and influencers etc for the past three years.

"The industry is advised to ensure that the brand extensions follow the broad principles of advertising only genuine extensions (i.e turnover and distribution in proportion to advertising spends) and ensure that the advertisements contain no cues of the restricted category such as taglines or layouts and do not unduly suppress the category name of the extension being advertised," the CCPA said.

On March 13, various representatives from the alcohol industry represented through the International Spirits and Wine Association of India (ISWAI) met the Consumer Affairs Secretary and shared a comprehensive plan of self-regulations to further strengthen the guidelines laid by the CCPA dated June 2022.

"Surrogate advertisements endorsing products in restricted categories pose a threat to consumer rights and carry substantial consequences," the CCPA said.

The regulator has emphasised the need for a collaborative effort between legislative bodies and industry stakeholders to establish a strong regulatory framework.