BMC’s OOH ad policy under fire for placing accident blame on advertisers

The Brihanmumbai Municipal Corporation (BMC) earlier this week released its draft policy on OOH ads. The guidelines have been framed for the display of outdoor advertisements including political advertisements as well as digital hoardings. 

According to the BMC, these guidelines fall within the ambit of The Mumbai Municipal Corporation Act, 1888 and all other related acts, rules and regulations. The 58-page document is open for public consultation until August 26, 2024.

The draft guidelines come at a time when the OOH industry is under severe scrutiny after a massive hoarding that was illegal collapsed killing 17 people and injuring more than 60 people in Mumbai's Ghatkopar early this year. A few more incidents have also taken place since then. As a result, the OOH industry has been under the lens of several public and Government bodies.

According to the BMC, these guidelines keep pace with the changing scenario of the OOH industry nationally and internationally.  However, several stakeholders in the industry feel that while the BMC guidelines were the need of the hour, there are still some ambiguities around them.

Blaming the advertiser is unfair

The draft guidelines say that, “In case of an accident, the advertiser shall be solely liable against all actions/suits/claims/damages and demand of any nature.” This according to advertisers and stakeholders is unfair.

Mandeep Malhotra, founder &CEO, Srishti Media- an OOH media operator says that holding advertisers responsible for mishaps places a significant burden on them, particularly if the mishap is due to factors outside their control, like natural calamities or structural failures.

“While it's fair for advertisers to ensure their content is compliant and doesn't cause distractions, a more balanced approach would involve shared responsibility between advertisers, media owners, and regulatory bodies. Clear definitions and guidelines on what constitutes an ‘accident’ will be key to ensuring fairness, says Malhotra.

Similarly, Rachana Lokhande, partner at OOH Capital says, that placing the sole responsibility on advertisers for accidents is unfair, especially considering that accidents can also result from unforeseen events like an Act of God. 

“What if there was a lack of governance, as seen in the Ghatkopar incident? Who will be responsible then?” she asks. 

Ritesh Bhatt, associate vice president at Connect Network- a media tech agency specialising in OOH media states, that the onus on the structural integrity and the misses of the place are known to the media owner. “Ideally, the agency should indemnify the client and the agency should be indemnifed by the media owner,” about an OOH site.

Difficulties for DOOH

According to the guidelines, all digital / LED / LCD / electronic hoardings are supposed to be switched off at 11 pm. They also state that digital / LED / LCD / Electronic display of hoardings of all sizes are permitted subject to a ‘No Objection Certificate’ from the Traffic Branch of Mumbai Police. Also a ‘No Objection Certificate’ is supposed to be submitted from the landowner for the conversion of existing displays into digital displays.

According to Bhatt, LED displays help motorists and drivers with visibility at night. He says that it should be extended till at least 1 am. “In a city like Mumbai, you can still get stuck in traffic at 11 pm. Isn’t that the sole reason advertisers put out advertisements? So that they can see the ads when stuck in traffic?” he says.

Similarly, Malhotra of Shristi Media opines that this regulation does not sit right with the character of the maximum city. “The 11 PM shutdown for digital hoardings seems a bit conservative. Considering that many areas in Mumbai have significant footfall and traffic even late into the night, this regulation might not align with the city's character. A more flexible approach, possibly extending the cutoff to midnight or 1 AM in certain areas, could have been more practical while still addressing concerns around light pollution and safety.”

Other misses of the regulation

As per Lokhande, it’s commendable that the BMC will have the final authority over these guidelines. This centralised control ensures uniformity. She adds that blacklisting offenders, the online processing of applications, and the conditions for having insurance in place are all positive steps forward.

However,  there are areas of concern for example, “The current guidelines allow for large billboards (up to 40x40 meters) with a minimum distance of only 70 meters between them. This does not effectively reduce visual clutter. Imagine several large billboards clustered closely together—it defeats the purpose of regulation.”

According to Lokhande, while the guidelines say that they are in accordance with the international outdoor advertising policies, there has been no consultation with international bodies.

“If the aim is to meet international standards, involving international bodies or experts in the formulation of these guidelines would have been beneficial.

Immediate impact

These guidelines come just before the kickstart of the festive season- a very important period for the OOH industry. 

According to Bhatt, the reaction to these guidelines may also impact the spends on OOH in the festive season. 

Similarly, Malhotra adds that the immediate response is likely to be mixed. “Some advertisers and agencies may feel a sense of panic, especially with the festive season approaching, as they scramble to ensure compliance and secure inventory. The guidelines may initially slow down the buying of OOH inventory as the industry adjusts to the new rules. However, once the dust settles, it could lead to a more streamlined and safer advertising environment in Mumbai, ultimately benefiting all stakeholders.”