Mumbai: The next time a company pitches a “new and improved" variant of a shampoo, detergent or skin cream to consumers with a promise that it offers multiple benefits, the advertising industry’s watchdog could be putting the claim to test.

And if it turns out that the claim is limited to a change in product packaging or the addition, say, of a new fragrance, the Advertising Standards Council of India (ASCI) will make sure the companies say so—and clearly—in their advertising.

In a bid to define the boundaries for advertisers and protect consumers, ASCI, a self-regulatory body, recently included guidelines for advertising that made “new and improved" claims for their products or services a part of the industry code.

The new guidelines say that the words “New/Improved" must specify what aspect of the product or service is new or improved—utility, function, product design, package design, and so on.

The words “new", “improved" or “improvement" in relation to a product or service may be used in advertisements only for a period of one year from the time it is introduced in the market.

The ASCI code is generic in nature and covers all aspects of advertising. As times change, there is a need to go into some specifics and define guidelines for some claims and product categories, explained Shweta Purandare, secretary general of ASCI.

“For instance, in the case of the ‘new and improved’ claim, we are getting into the specifics of things," Purandare said. “While several companies have stringent codes internally which determine what claims are being made and for how long, it was felt that there was a need to put down some guidelines, which could create a level playing field for everyone."

“So while there may not be too many consumer complaints driving this change, it comes on the back of certain intra-industry disputes and a need for clarity as the definition of ‘new and improved’ could be different from company to company," she said.

If a new variant of detergent has a new and improved fragrance, the advertisement should specify that, rather than leave a claim open-ended so that a consumer presumes it is true for the entire product, including its cleaning efficacy.

“Also keeping the product’s life cycle in mind, and the fact that India is a vast country, it was felt that a company should not use the ‘new and improved’ claim beyond a year—which was considered enough time for them to get the product to their target consumers across the country," said Purandare.

ASCI has been trying to respond more quickly to consumer complaints, ensuring over 90% compliance with the industry code. ASCI decisions are binding on television commercials. A 2006 notification says “no advertisement which violates the code for self-regulation in advertising as adopted by ASCI for public exhibition in India from time to time shall be carried in the cable service".

When consumers go shopping, they tend to take an advertiser’s claim that a product is new and improved at face value, rarely looking to verify the facts, experts said.

“Consumers are usually not sceptical about questioning such claims and don’t realize that they may be taken for a ride by the company. Who reads the fine print? So, in that sense, there is some protection in this guideline for consumers, as companies will now be expected to spell out specifically what their ‘new and improved’ proposition is," said Arvind Singhal, chairman of Technopak Advisors Pvt. Ltd, a retail consulting firm.

Retail industry executive say ASCI’s move would help promote transparency in product claims.

“Some companies say ‘new’ for three months, some for one year, so ‘new’ gets defined now. Also, the term ‘new’ is used to communicate a vast spectrum of changes like packaging as well as for large changes in product benefits and features itself. Guidelines like these will benefit consumer by creating awareness," said Devendra Chawla, chief executive officer at Food Bazaar, the value retail format of Kishore Biyani-led Future Retail Ltd.

While ASCI already has guidelines pertaining to statutory or mandatory warnings in place for the print and television medium, it recently updated the guideline specifically for radio as well.

The new guideline states that the speed of mandatory messages should not exceed six syllables per second, to ensure that they are easily understood. The volume of the message should be the same as the rest of the radio spot. Moreover, the mandatory message (the super text in television ads) should be issued in the same language as the voice-over, or advertisement.

ASCI recently sought the advertising industry’s opinion on a draft of guidelines for advertisements promoting fairness and skin-lightening creams. The category has drawn flak from consumers and critics for perpetuating the idea that dark skin is not desirable through advertisements depicting their protagonists as being unable to land the best job or a marriage proposal because they aren’t fair enough.

Their luck turns only with a change in the colour of their skin. Following feedback from the industry, the new guideline on such advertisements is likely to be in place in a month or two.

Technopak Advisors’ Singhal said the guidelines related to “new and improved" claims would check the use of subterfuge by advertisers to boost sales at a time when economic growth has slowed.

“However, it is yet to be seen how much compliance ASCI will be able to enforce considering that they do not have the power, so to speak, to impose fines or take legal action against the vast spectrum of marketing communication," he said.

“Some marketers tend to put the ‘new and improved’ sign on the packaging and tend to forget to take it off till they re-launch the product again. So this (guideline restricting the usage to one year) is certainly good enough time for them to get their message and product across India," said Kannan Sitaram, operating partner at India Equity Partners, a private equity firm that invests in consumer product companies.

“Having said that, I think the guideline which expects companies to specify what is ‘new and improved’ in the product may be slightly limited in view. I think we should leave it to the marketer to decide. For instance, if a shampoo has better foaming action, you can’t expect them to specify that as ‘new and improved foam’. While the formula may be the same, or cleansing power maybe the same, that change in foaming action may actually lend itself to a better consumer experience. To be sure, when people buy a product they look for several things that lead to a consumer satisfaction," Sitaram added.

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