Paytm, one of the fastest growing mobile wallet and e-commerce industry in India has achieved a new milestone by becoming the sole member of Advertising Standards Council of India (ASCI). The order was passed by ASCI and PAYTM is all set to become its member by April.
- One of the main reasons behind the move by ASCI for bringing e-commerce industries under its control is because of the advertising violations by e-commerce companies, which are big spenders on television, print and digital media.
- This move comes after the six complaints which are filed against the errant advertisers under the e-commerce majors PAYTM, Amazon, Clear trip, Magic bricks, free charge and Pepper fry for making false and misleading claims on November 2016.
Reason behind this move
The members of ASCI include advertisers from various sectors, such as fast-moving consumer goods (FMCG), media, auto and telecom, which spend heavily to stay visible in the marketplace. But there is no single e-commerce company in this list.
A complaint was filed against PAYTM to ASCI on November 2016, due to the misleading add stating “flat 50 per cent cash back”, which was found limited to Rs 150 only.
- This is the major reason why PAYTM joined as the member of ASCI, since the rules and regulation for advertising will be well cleared. But, PAYTM did not respond to the mail seeking explanation of joining ASCI.
Actions taken by Advertising Standards Council of India (ASCI)
By becoming a member of ASCI, companies submit themselves to the ASCI Advertising Code, conveying the message that they wish to be responsible advertisers.
- This implies quick modifications to advertisements, which, if not done, could attract stringent action, especially in the case of television ads.
- The action taken by the ASCI is final against any violation.
- The companies which are not members of ASCI can file petition in court, if a complaint is filed against their advertisements.
About Advertising Standards Council of India (ASCI)
- Advertising Standards Council of India (ASCI) is a non-Government body, looks after the self-regulation of the advertising industry in India.
- The public body was founded in 1985 and headquartered in Mumbai, Maharashtra
- The Chairman of ASCI is NARENDRA AMBWANI and SHWETA PURANDARE, as Secretary General