78% consumers have low trust in advertisements: Survey

Hyderabad: Following a Supreme Court order requiring companies to submit a self-declaration form before advertising any product, 78 per cent of Indian consumers have reported low trust in advertisements, according to a recent survey.

The order, which came into effect on June 18, mandates that companies affirm their advertisements do not contain misleading claims and requires influencers and celebrities to endorse products responsibly.

The survey conducted by LocalCircles, which polled over 37,000 consumers across 312 districts, revealed that consumer trust in advertisements has significantly declined, with many calling for stricter regulation by the Central Consumer Protection Authority (CCPA) instead of the current industry body, the Advertising Standards Council of India (ASCI).

Low trust in advertisements

The data indicates that 25 per cent of consumers surveyed have ‘zero’ trust in advertisements, while 53 per cent have ‘low’ trust. Only 20 per cent of respondents reported having an ‘average’ level of trust, and just 2 per cent were unsure.

Misleading celebrity endorsements

The Supreme Court’s directive comes in the context of widespread consumer disillusionment with advertisements, particularly those endorsed by celebrities.

Over the past year, 84 per cent of respondents reported encountering advertisements by celebrities that were later found to be misleading or false. Of these, 52 per cent encountered ‘several’ such advertisements, while 32 per cent came across ‘a few.’ Only 6 per cent of respondents had not encountered any misleading ads.

The survey also revealed that 73 per cent of consumers believe that the regulation of advertisements should be overseen by the CCPA rather than ASCI.

Only 11 per cent felt that the current self-regulatory framework under ASCI was effective, and 6 per cent believed that advertisements should not be regulated at all. Another 10 per cent were uncertain.

Patanjali case

This call for change follows the Supreme Court’s actions in a case involving Baba Ramdev and Acharya Balkrishna of Patanjali Ayurveda, who were accused of violating orders against misleading advertisements.

The court’s order, which restrained Patanjali from advertising certain medicinal products, highlights the ongoing concerns about consumer protection in advertising.

Survey methodology

The LocalCircles survey included responses from a diverse group of consumers, with 67 per cent of respondents being men and 33 per cent women. The respondents were geographically spread across tier 1 (47%), tier 2 (33%), and tier 3 and 4 districts (20%).