Informed sources have revealed that close to half of the complaints upheld by ASCI (Advertising Standards Council of India)—and subsequently withdrawn or modified—originate from competitors within the industry

Moneylife Digital Team

The corporate warfare between big brands is just intensifying as more and more companies are fighting it out for a bigger size of the pie-and trying to grab that elusive consumer. Now it appears that the war has reached a different level-instead of expensive and lengthy legal battles, Moneylife has found that companies are find it easier to have the advertisements of their rivals pulled out by approaching the Advertising Standards Council of India (ASCI).

In the period of one year (from April 2010-March 2011), 42 out of 82 complaints against advertisements—that were either modified or withdrawn by ASCI's Consumer Complaints Council (CCC)—were from rival companies.  

For instance, a rival company of Hindustan Unilever (HUL) complained about the multinational giant's television commercial of New Rin, which claims to be the only powder in India "removing yellowness and bringing whiteness" to clothes. According to the complaint, the visual showing the comparison between New Rin and another detergent (not named in the ad) is false and misleading. CCC upheld the argument, found the claim misleading, resulting in discontinuation of the commercial.

Similarly there was a complaint against Dish TV claiming that "half the country loves Dish TV" from a player within the industry. The ad was discontinued, after CCC found it to be misleading.

Moneylife has in its possession the details of the complainants whose complaints have been upheld. However, the documents do not reveal the name of the complainant, but only specify if the complaint has emerged from a rival player within the industry.

According to a few industry experts, none of these companies wants to approach court when ASCI provide them with an "easy complaint platform".

From 1st September, ASCI had decided to proceed with a 'fast-track redressal' of complaints originating within the industry. Accordingly, such complaints will now be resolved by the Fast Track Complaints Council (FTCC) of ASCI within seven working days, from the earlier time of around five weeks taken to resolve complaints.

Avinash Mantri, founder, Purple Grape Production and advertising professor, told Moneylife, "Companies often come out with an ad claiming that their product's results are better, or just use satire to lampoon a competitor's ad. There is a lot of competition between brands. (After all), an ad is all about giving out a quick message to the consumer. Even if ASCI has decided to fast track complaints, by the time the decision is out, the consumer already gets the message."

In fact, there are a number of complaints within the industry against HUL's advertisement. When asked if companies are using ASCI to target competitors, the HUL's spokesperson told Moneylife, "ASCI has been a very effective industry platform to deal with advertising-related complaints in a time-bound manner. It is recognised by the government and the legal system as well. The proposed fast track system for dealing with intra-industry complaints will strengthen the platform further as it will reduce the time taken to resolve the complaints."

Many of these intra-industry complaints, at times have no basis. In the above mentioned period, ASCI did not act against 29 out of 80 intra-industry complaints. For instance, on the Eureka Forbes television commercial claiming that that its brand Aquaguard is a "paani ka doctor", there was a complaint against it from a player from the industry. The complaint stated that the ad was trying to mislead consumers on a health issue and was also trying to "equate itself with professional doctors", without giving any proof. However, ASCI did not uphold the complaint saying that "paani ka doctor", is a creative expression stating that Aquaguard is capable of recommending the appropriate technology for water treatment."

ASCI insists that it upholds complaints only if they are scientifically proved. Alan Collaco, general secretary, ASCI, told Moneylife, "In this competitive environment, companies are alert to the competitors' claims in ads. However, the Consumer Complaints Council as well as our robust complaints handling procedure ensures that no complaints are upheld unless they are scientifically proved."