Advertising Standards Council of India  CAST STUDY  solution

Read the case given below and answer the questions given at the end of the case.

Misleading or false advertising is most rampant in healthcare and personal care space, accounting for more than half the total number of advertisements found to have flouted the compliance norms and code of conduct of the Advertising Standards Council of India (ASCI) According to the consumer complaints council of the self-regulatory organisation of the advertising industry, there has been a significant rise in the number of advertisements being recognised as misleading or false or not adequately or scientifically substantiated. Majority of these were from the healthcare and personal care sector. To lure consumers, advertisers often exaggerate and make tall claims such as curing diabetes or baldness, reducing weight and increasing height. Consumers of personal care products such as deodorants, anti-aging creams and cosmetics buy these products not just out of need but for the aspirational value, they add to their lifestyle as well. While creating that aspirational appeal sometimes advertisers exaggerate. According to one of the leading marketing and business consultant not all such ads are completely misleading. "They tend to exaggerate, concealing more than revealing. Technically they are correct but morally they cannot be called right" he said. It was found that over 90% of complaints ASCI receivers are against advertisements from small unorganized players which make claims like curing diabetes, kidney stones, blood pressure among others. Consumers in smaller markets tend to get influenced by such claims. The volume of such ads in the regional media is very large : Besides, healthcare and personal care sector, it is the education industry that brings out the most number of misleading ads.

 Questions :

(a) Discuss the ethics in advertising and explain how significant they are particularly in a country like India.

(b) As an Advertising Consultant what will be your advise to small business owners from unorganized sector on the effects of such claims on their business and subsequent consequences.