ASCI's new code mandates media companies to label paid posts

The Advertising Standards Council of India (ASCI) has added a new clause to its Code for Self-Regulation in Advertising, requiring media companies to clearly label paid content on their social media platforms. The step is intended to prevent advertisements and promotions from being mistaken for editorial content.

The new Clause 1.8, under Chapter 1, Truthful and Honest Representation, mandates that any paid or sponsored post by a media company must include a clear disclosure at the beginning of the post. Acceptable labels include: Advertisement, Partnership, Ad, Free Gift, Sponsored, Platform disclosure tags, and Collaboration. The body claims that the requirement aligns with the Norms of Journalists' Conduct, which also require newspapers to clearly distinguish advertisements from content.

The updated code read: “Social media advertisements or promotions posted on the handles of media companies must be clearly identifiable and distinguishable from editorial or any other content. All such advertisements should add adequate disclosures upfront and prominently at the beginning of the post, such that audiences know they are interacting with an advertisement/promoted content.”

The move follows consumer complaints about undisclosed or misleading promotional posts, especially on platforms where audiences rely heavily on the outlet’s editorial credibility. ASCI stated that transparency is necessary to safeguard both public trust and the reputation of media brands.

Manisha Kapoor, CEO and Secretary General of ASCI, said, "Labelling sponsored content is crucial for several reasons. It builds trust and transparency with the audience, which appreciates knowing whether it’s an endorsement or recommending something in exchange for compensation. Second, it helps to comply with the laws and guidelines, which may require one to disclose any material connection or relationship you have with a brand or product. Finally, it helps avoid potential penalties, fines or legal actions from regulators, who may accuse you of deceptive or unfair marketing practices. ASCI monitors such content closely to avoid any brand influence of misleading content by brands.”

She further added, "Several media outlets regularly post editorial content on their social media handles. Increasingly, we see that advertisements with no or poorly visible disclosures are making their way to such posts. To maintain the integrity and trust of media news and features, it is important that sponsored or promoted content is distinguished by means of upfront disclosures. This prevents such advertisements from misleading consumers about their true nature. Consumers have a right to know if they are dealing with sponsored or editorial content right at the beginning.”