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Illegal ads and scams outpace misinformation in ad violations: ASCI
2026-05-28 · via Business News Today: Latest Business News, Finance News
A report says that consumer safety risk in advertising is now growing beyond misinformation as categories that are restricted by law are promoted

A report says that consumer safety risk in advertising is now growing beyond misinformation as categories that are restricted by law are promoted

The speed and reach of digital ecosystems have helped advertising, but they have also amplified misleading and harmful advertising, making monitoring a nightmare, says the latest annual complaints report of the Advertising Standards Council of India (ASCI). It notes that advertisements, especially in the offshore betting ecosystem — marked by high-speed content churn, rapid ad creation and cross-platform distribution — are spread widely through influencers, affiliate networks, social media groups and messaging platforms, complicating identification.

Significantly, the report says that consumer safety risk in advertising is now growing beyond misinformation as categories that are restricted by law are promoted. Despite regulatory intervention, offshore betting emerged as the most violative sector, accounting for 6,933 cases. It was followed by realty (643 cases), personal care (576 cases), food and beverages (331 cases) and products violating the Drugs and Magic Remedies Act (274 cases).

According to the FY26 report, ads promoting harmful products or situations accounted for 75.4 per cent of the overall cases, followed by misleading claims at 27.5 per cent.

The self-regulatory body reviewed 11,581 cases, which represented a 21 per cent increase year-on-year in FY26. These cases pertained to 9,841 ads, a 37 per cent year-on-year increase over the previous fiscal. “Ninety eight per cent of the ads scrutinised required some modification. Notably, 93 per cent of these cases came from ASCI’s proactive monitoring,” ASCI added. 

influencer violations

Digital platforms accounted for 97.3 per cent of all ads scrutinised, with 82 per cent of these being sponsored content on social media platforms. Meta platforms accounted for 79.84 per cent of digital violations. Between April and December 2025, 854 influencer violations were identified, including accounts entirely dedicated to offshore betting content, it added. 

Sudhanshu Vats, Chairman, ASCI, said: “Across categories, we are seeing a growing tendency toward exaggerated claims, manufactured scientific credibility, influencer-led amplification and the normalisation of non-compliance as a post-publication correction exercise.”

In terms of influencer marketing, out of the 1,609 influencer ads processed during the last financial year, 97 per cent required modification, with over 54 per cent promoting categories prohibited by law or where advertising is restricted.

“In the beauty and personal care, and food and beverage categories, widespread use of exaggerated claims, unsubstantiated health benefits and pseudo-scientific assertions were observed,” ASCI noted. 

In food and beverages, the violations centred around misleading or unsubstantiated claims around metabolic health, chronic disease, child development, fertility and organ function for products such as weight-loss supplements, growth formulas and even “drinkable sunscreens”.

The report’s findings underline the urgent need for stronger accountability, better substantiation standards, responsible influencer practices and preventive approaches to governance in digital advertising, ASCI noted.

Published on May 28, 2026