India’s fast-growing e-commerce industry Paytm is all set to become a member of the self-regulatory voluntary organization Advertising Standards Council of India (ASCI) from April, 2017. Paytm set to become a member of the self-regulatory voluntary organisation next month.
This action is significant because, in recent years, advertising violations by e-commerce companies, which are big spenders on television, print and digital media, have been on the rise.The move is significant because advertising violations by e-commerce companies, which are big spenders on television, print and digital media, have been on the rise in recent years. ASCI members include key advertisers from various sectors, such as fast-moving consumer goods (FMCG), media, auto and telecom.These spend heavily to stay visible in the marketplace. However, no e-commerce company is a member of the body yet.By opting to be a member, companies submit themselves to the ASCI Advertising Code, conveying the message that they wish to be responsible advertisers. Any violation, upheld by ASCI, puts the onus on the member to abide by the regulator’s decision.This implies quick modifications to advertisements, which, if not done, could attract stringent action, especially in the case of television ads. Those who are not ASCI members use it as a lever to not abide by the regulator’s directives, choosing to continue with their original piece of communication. Paytm’s decision is expected to prompt others to follow suit.