New Delhi: The Indian Advertising Standard Board (ASCI) has brought more stringent rules to clamp the tobacco and liquor substituting advertising, because the distribution of the new brand extension has become easier with boom in e-commerce.
While the original provisions to rule the pursuer of chasers of liquor and tobacco still exist, fresh norms have been introduced to check new launches related to this product, Manha Kapoor, Secretary General at ASCI to Tii.
“We have formulated these provisions after consulting with the government, the Sensor Board and all other stakeholders,” Kapoor said.
Liquor and tobacco brand extensions that have been launched, but have not finished two years, need to achieve a net sales turnover of Rs 20 lakh per month from the launch.
Apart from this, the brand can also show fixed asset investment, which is exclusive to the advertised brand extension, no less than Rs 10 Crore in the form of soil, machinery, factory or software, if the product is being produced or developed by advertisers.
There are no fees related to advertising that can be part of the investment, a copy of the provisions that have reviewed TII.
“The rules can be brought in views of the future.
Previous substituting advertising is used to require bottled water, soda, music CDs or even airlines (Kingfisher),” said Harh Bijoor, a brand and founding expert at the Harisan Bijoor consultant.
“But at this time the proliferation of business-to-consumer brands (B2C) is increasing.
And no one stops liquor or tobacco brand to open tomorrow’s portal to market branded items (not liquor or tobacco) to consumers directly.” The original rules for substitute advertisements remain the same as for brands present on the market for more than two years, product sales turnover or services must exceed Rs 5 Crore per year nationally or Rs 1 Crore per year per country where the distribution has been established.
And in addition to being registered with government authorities such as GST, FSSAI or FDA, the brand extension business needs to be audited by independent organizations such as Nielseniq.