India's crackdown on surrogate alcohol ads: Celebrities face bans, companies risk hefty fines

According to a Reuters report, the forthcoming regulations from the government targeting surrogate advertising for alcohol, could see companies facing fines of up to Rs 50 Lakh. More strikingly, celebrities endorsing such ads risk facing bans lasting one to three years.

Nidhi Khare, the top civil servant for consumer affairs, told Reuters, "You can't take a circuitous way to promote products. If we find ads to be surrogate and misleading, then even those who are endorsing (products), including celebrities, will be held responsible."

The new rules aim to close loopholes in India's existing ban on direct alcohol advertising. Currently, companies often circumvent this ban through surrogate ads, promoting seemingly unrelated products like water or music CDs using branding reminiscent of their alcohol products. These ads frequently feature popular Bollywood stars, a practice that may soon come under scrutiny.

The draft rules explicitly prohibit "surrogate advertisement" and extend to sponsorships and ads for products considered "brand extensions" sharing characteristics with alcohol brands. This comprehensive approach signals a determined effort by Indian authorities to curb indirect alcohol promotion.

While some industry bodies, such as the International Spirits and Wines Association of India, have expressed commitment to compliance, the new regulations are likely to pose significant challenges for alcohol manufacturers operating in the world's eighth-largest alcohol market by volume.