India to Tighten Liquor Advertising Rules: Impact on Major Brands and Celebrities
India is set to implement stringent regulations to restrict surrogate advertising and event sponsorships, a move that will significantly impact liquor giants like Carlsberg, Pernod Ricard, and Diageo. These reforms will prohibit misleading ads and impose heavy fines on companies and bans on celebrity endorsements. The new rules aim to curb the promotion of alcohol through indirect means, enhancing public health measures.
India is poised to enforce rigorous new regulations that will ban surrogate advertisements and event sponsorships linked to alcohol brands. This impending shift promises to upend marketing strategies for global liquor players such as Carlsberg, Pernod Ricard, and Diageo.
Nidhi Khare, India's top consumer affairs civil servant, told Reuters that the new guidelines will ensure accountability for both companies and endorsing celebrities found promoting products misleadingly. These rules are expected to take effect within a month.
The forthcoming changes target indirect advertising tactics like using brand logos on unrelated products. Penalties could include fines up to 5 million rupees and endorsement bans of up to three years. Industry stakeholders are currently in discussions with the government to navigate these stringent new measures.
(With inputs from agencies.)