Crypto And NFT Advertising Guidelines – Technology

 

India:

Crypto And NFT Advertising Guidelines

Advertising Standards Council of India 

In India, there is only one body for Self-Regulation in
Advertising – the ASCI, which is concerned with safeguarding
the interests of consumers whilst monitoring/guiding the commercial
communications of Practitioners in Advertising on behalf of
advertisers, for advertisements carried by the Media, in their
endeavors to influence buying decisions of the Consuming
Public.

It has implemented a Code for Self-Regulation in Advertising. It
is a commitment to honest advertising and to fair competition in
the market-place. It stands for the protection of the legitimate
interests of consumers and all concerned with advertising –
advertisers, media, advertising agencies, and others who help in the
creation or placement of advertisements.

ASCI encourages the public to complain about advertisements
that they consider to be false, misleading, offensive, or unfair.
All of these complaints are evaluated by an independent Consumer
Complaints Council (CCC).

The Advertising Standards Council of India (ASCI) has recently
released guidelines for the promotion and advertising of crypto and
NFTs with a view to protecting consumers from misleading and
exploitative ads. The regulatory body has come up with the
protocols after consulting with industry experts and the
government.

The guidelines come right after this
year’s budget which announced a 30 percent
‘crypto tax’ on all digital assets and a 1 percent TDS for
each crypto-related transaction.

According to ASCI, all advertising for virtual digital
assets and services need to follow the following
guidelines :

1. 1. The Advertising Standards Council of India (ASCI)
      wants this disclaimer prominently displayed on ads and promotions
      related to virtual digital assets (VDAs) like
      cryptos or non-fungible tokens (NFT)”Crypto products and NFTs are unregulated and can be
      highly risky. There may be no regulatory recourse for any loss from
      such transactions.”

      Provided that such disclaimer shall be PROMINENT and UNMISSABLE by
      an average consumer:

      • • In print or static, in an easy-to-read font, against a
          plain background, and to the maximum font size afforded by the
          space.

       

      • • The video, at the end of the advertisement against a
          plain background, must contain a disclaimer in text in the voice-over. In
          the case of a long-format video of over two minutes, a disclaimer
          should be repeated at the beginning and at the end of the video.
          The disclaimer must remain on screen for a minimum of five
          seconds.

       

      • • In audio, the disclaimer must be spoken at the end of
          the advertisement. In the case of long-format audio of over 90
          seconds, the said disclaimer should be repeated at the beginning
          and at the end of the audio.

       

      • • In social media posts, such a disclaimer must be
          carried in both – the caption as well as any picture or video
          attachments.

       

      • • In disappearing stories or posts unaccompanied by
          text, the said disclaimer will need to be voiced at the end of the
          story.

       

      • • The disclaimer in limited space must be used “Crypto
          products and NFTs are unregulated and risky” followed by
          a link to the full disclaimer.

       

      • • must be made in the dominant language of the
          advertisement

       

      • • must meet the minimum requirements of guidelines;

       

 

2. 2. Words “currency“,
      “securities“,
      “custodian” and
      “depositories” not to be used;

 

2. 2. Not be contradictory to information or warnings that the
      regulated entities provide to customers;

 

2. 2. Shall contain clear, accurate, sufficient, and updated
      information on the cost and profitability of VDA products;

 

2. 2. Not provide partial biased information on past
      performance;

 

2. 2. Not include a return for a period of fewer than 12 months;

 

2. 2. Must clearly state the name and contacts details of
      advertiser;

 

2. 2. Not display any minor dealing with the product;

 

2. 2. Not portray that VDA products solve money problems, personality
      problems or other such drawbacks;

 

2. 2. Not contain statements that promise or guarantee future
      increase in profits;

 

2. 2. Not display that VDA is easy or downplay the risks;

 

2. 2. Not be compared to any other regulated asset class;

 

2. 2. Celebrities or prominent personalities who appear in VDA
      advertisements must ensure that they have done their due diligence
      about the statements and claims made in the advertisement, so as
      not to mislead consumers.

 

The guidelines will be applicable to all virtual digital
asset-related ads released on or after April 1, 2022. Advertising
agencies and Media houses must also ensure that all earlier
advertisements must not appear in the public domain unless they
comply with the guidelines, post the 15th of April 2022.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

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