ASCI releases guidelines for advertising and promotion of virtual digital assets, NFTs and VDA services - full details here!

Advertising Standards Council of India (ASCI) on February 23 rolled out the much-awaited guidelines for promoting and advertising crypto assets and non-fungible tokens (NFTs), amid concerns that investors are not adequately informed about the risks associated with Variable Dearness Allowance (VDA). ASCI is Indian advertising industry's self-governing body. 

The guidelines were issue after extensive consultation with all stakeholders, including the government, a media release said.
ASCI said all VDA products and VDA exchanges, or featuring VDAs services should carry the following disclaimer:

"Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions."

All advertising for virtual digital assets and services needs to follow the following guidelines:

(1) This disclaimer must appear on all advertisements for VDA products, VDA exchanges, or ads featuring VDAs.

"Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions."

Consumers should see a disclaimer in the following manner in order for it to be PROMINENT and UNMISSABLE:

Regardless of whether the advertisement is static or in print, it must occupy at least one-fifth of the advertising space at the bottom of the advertisement, in an easy-to-read font, against a plain background, and in the largest font size possible.

Video advertisements should include a disclaimer at the end against a plain background. The disclaimer must also be narrated. The voiceover should be delivered at a natural pace without being hurried. If the video is longer than two minutes, the disclaimer should be repeated at the beginning and at the end. The disclaimer must remain on the screen for at least five seconds.

The disclaimer must be spoken at the end of the audio advertisement. It is important that the voiceover isn't hurried and should be done at a normal speaking pace. If the audio is longer than 90 seconds, the disclaimer should appear at the beginning and 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. The disclaimer within the caption must be placed upfront at the beginning of the post. Where social media posts. or advertisements  have restrictions on text in the static picture, the disclaimer must be carried upfront in the caption before the fold.

In cases of disappearing stories or posts without text, the disclaimer will need to be voiced at the end in the manner outlined in points (a) or (b). If the video is 15 seconds or less, then the disclaimer can be displayed prominently as an overlay.

The following shortened disclaimer should be used in formats with character limits: "Crypto products and NFTs are unregulated and risky" followed by a link to the full disclaimer.

The disclaimer must be written in the dominant language of the advertisement.
Furthermore, all disclaimers must meet the minimum requirements outlined in the ASCI guidelines for disclaimers.

(2) The terms "currency", "securities", "custodian" and "deposits" should not be used in advertisements for VDA products or services as consumers associate these terms with regulated products.

(3) The information contained in advertisements shall not contradict the information or warnings provided by regulated entities to customers when marketing VDA products.

(4) Advertising that provides information on a VDA's cost or profitability must be clear, accurate, sufficient, and up-to-date. In other words, "zero cost" must include all costs that the consumer might reasonably attribute to the offer or transaction.

(5) The past performance information shall not be provided in a partial or biased manner. Results for periods shorter than 12 months shall not be included.

(6) Advertisements for VDA products should clearly state the name of the advertiser and provide a way to reach them (email or phone number). The information should be presented in a way that is easy to understand by the average consumer.

(7) Advertising for VDA products or exchanges cannot show a minor, or someone who appears to be minor, directly handling the product or discussing it

(8) Advertising may not suggest that VDA products or VDA trading are a solution to money problems, personality issues, or other such problems.

(9) Advertisements must not make any promises or guarantees regarding future profits.

(10) The advertisement may not claim that understanding VDA products is so easy that consumers do not have to think twice before investing. The advertisement should not downplay the risks associated with the category.

(11) VDA products cannot be compared to any other asset class that is regulated.

(12) Since this is a risky category, celebrities and prominent personalities who appear in VDA advertisements must take special precautions to ensure they have done their homework about the claims and statements made in the ad in order not to mislead consumers.

All advertisements released or published after April 1 2022, will be subject to the guidelines. Advertisers and media owners must also ensure that all older advertisements do not appear in the public domain until they comply with the guidelines after April 15 2022.