The Advertising Standards Council of India (“ASCI”) issued a new set of guidelines on July 20, 2023, concerning advertisements related to charitable causes. The primary objective of these guidelines is to strike a balance between facilitating the efforts of charitable organizations while safeguarding the interests of consumers.

In the preamble of the guidelines, ASCI acknowledges that charitable organizations are driven to maximize their fundraising potential, but it emphasizes the importance of exercising caution to avoid misleading or distressing consumers during their promotional activities. It is noted that in recent years, charitable organizations, especially crowdfunding platforms, have been actively utilizing digital media to reach potential donors and seek funds for their beneficiaries. While this approach has proven effective, there have been concerns about certain advertisements that might inadvertently cause distress to consumers, particularly due to the use of graphic images.

Below are the key points outlined in the guidelines: 

1. Avoiding Misleading Statements: Advertisements for charitable organizations or crowdfunding platforms should refrain from explicitly or insinuatingly suggesting that those who do not support the cause are neglecting their responsibilities or should feel ashamed. 
2. Respecting Dignity: Ads must not compromise the dignity of beneficiaries by using distressing images, especially those involving children and minors. Advertisers must be prepared to provide evidence of explicit consent for using images of beneficiaries, if requested. 
3. Digital Advertising Sensitivity: In digital advertising, any images that could cause undue distress to an ordinary consumer should be blurred, making them visible only to those who choose to click for further information. 
4. Transparency in Fund Usage: Advertisements that appeal for specific cases or beneficiaries must disclose whether the raised funds may potentially be used for other purposes or beneficiaries. Consumers should not be misled about the allocation of their donations. 
5. Fee Disclosures: In cases where a crowdfunding platform collects a percentage or fee for managing or raising donor funds, such amounts must be clearly stated in the advertisement itself.

 As stated in the preamble, these guidelines are pursuant to Chapter 1 and Chapter 2 of the ASCI Code.  

1. Chapter 1 of the ASCI Code emphasizes the importance of truthful and honest representation in advertisements. Advertisers are required to avoid misleading or deceptive claims, ensuring that all statements are supported by factual evidence. Comparative advertising is allowed if based on accurate data and not denigrating competitors. Clear disclaimers must be included where necessary to avoid misinterpretation, and advertisements should not create confusion with existing products or brands.
2. Chapter 2 of the ASCI Code centers on safety and sensitivity in advertising. Advertisements must not endanger public safety or health and should not promote illegal or harmful products. It strictly prohibits offensive or indecent content and requires respect for cultural values and social sensitivities. Special care should be taken while portraying vulnerable groups, like children and women, to avoid exploitation or discrimination. Discriminatory advertising based on race, religion, gender, or nationality is also not allowed, and ads must not exploit consumers' lack of knowledge or experience, especially children.

It's important to note that the ASCI Code is not a legally binding document, but it serves as a self-regulatory mechanism for the advertising industry in India. Advertisers are encouraged to adhere to these principles to maintain ethical standards and build trust with consumers.  

Please find a copy of the guidelines, here.

This update has been contributed by Namitha Mathews (Partner) and Anukriti Goswami (Associate).

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