To step up efforts to weed out surrogate advertising, the Central Consumer Protection Authority (CCPA) recently issued notices to Bacardi, Pernod Ricard, United Breweries, Radico Khaitan and William Grant & Sons for promoting alcohol indirectly by advertising non-alcoholic products with similar branding.
The government’s motivation for tightening the noose on surrogate advertisers is clear: tobacco consumption accounts for over 1 million adult deaths each year, while alcohol-related deaths are estimated at 38.5 per 100,000 people annually. In India’s advertising world, where stringent restrictions have often led to creative workarounds, alcohol and tobacco brands have managed to maintain visibility through unexpected channels—like mineral water bottles or music CDs—that subtly evoke the forbidden. Celebrities such as Akshay Kumar and Shah Rukh Khan have faced scrutiny for their brand associations.
Despite previous regulatory efforts, pan masala brands spent approximately `350 crore in advertising during IPL 2024. Armed with new guidelines and steep fines, the CCPA has started cracking down on surrogate advertising, holding influencers and celebrities accountable for such veiled promotions. “The new guidelines will protect consumers, particularly the youth, from exposure to potentially harmful products disguised under alternate branding, thereby enhancing public health and safety,” says Yasin Hamidani, director at Media Care Brand Solutions.
To put things in perspective, the CCPA’s draft rules propose a penalty of 10 lakh for a first-time violation, with subsequent offenses facing fines of up to50 lakh. Notably, celebrities who endorse these ads could face bans for one to three years. The rules extend restrictions to sponsorships and advertisements for “brand extensions” that resemble alcohol brands. This ambitious step seeks to dismantle a backdoor that has kept restricted brands in the public eye, hidden under layers of plausible deniability.
“The diktat is specifically for the tobacco and alcohol industry, so the impact is likely to be significant, given their heavy reliance on celebrities,” says Pinaki Das, professor of marketing at the International Management Institute, New Delhi.
For consumers, these regulations promise more transparency and reduced exposure to covert advertising. The new rules might create a sense of dissonance within these industries, which already face stringent advertising norms, says Das. Companies might need to shift focus to permissible, transparent messaging or allocate marketing budgets for content that drives genuine engagement without regulatory risks, notes Amit Relan, co-founder and CEO of mFilterIt.
There will also be some re-evaluation of marketing budgets. “As traditional routes become more restricted, brands might reallocate funds to enhance their digital presence, leveraging social media, data analytics, and personalised content to connect with audiences,” says Ambika Sharma, founder and chief strategist at Pulp Strategy. Sharma adds that content marketing is likely to play a larger role, with brands creating compelling stories and experiences that align with their values. Additionally, they might explore technology to enhance digital engagement, as well as partnerships to offer a sense of brand presence without direct product promotion.
“Celebrities will need to reconsider their associations due to legal risks,” says Sandeep Agrawal, director and founder of Teamlease Regtech. Agrawal believes that self-regulatory bodies, such as the Advertising Standards Council of India (ASCI), will play a key role in fleshing out the guidelines, monitoring ads proactively while collaborating with authorities to penalise violators.