Adland in panic as BMC draft policy puts onus on advertisers, not OOH media owners
ISA and AAAI members say they are alarmed over the new provisions; the civic body has been silent so far
The Brihanmumbai Municipal Corporation's (BMC) new policy concerning outdoor advertising has sparked serious concerns within the advertising industry due to a contentious clause that places liability squarely on advertisers rather than media owners.
Sections 2.5 and section 3.6 of the draft policy, which stipulate the ‘Duties and responsibilities of media owners’ for advertisements in business premises and temporary ones, states - “In case of any accident, advertisers shall be solely liable against all actions/suits/claims/damages and demands of any nature.”
This provision has created a sense of unease among advertisers and ad agencies, who now find themselves facing the financial and legal burdens in case of collapse of hoardings, which are traditionally managed by media owners.
“Why should we bear the liability when media owners are directly responsible for the safety and maintenance of outdoor hoardings?” top advertisers and brand leaders told e4m.
Media owners also confirmed that they are inundated with calls from brands and ad agencies with regards to this. “If the confusion prevails, our business will be impacted,” said an owner.
The shift in responsibility has prompted a flurry of activity among industry stakeholders, who are urgently seeking clarity on the policy’s implications and strategizing their next moves.
Such is the panic that the Indian Outdoor Advertising Association (IOAA) has decided to write to the Indian Society of Advertisers (ISA) and Advertising Agencies Association of India (AAAI) to assure them that “the liability in case of an accident lies solely with the permit holder and not the brand or advertiser”.
Interestingly, the draft has mentioned “advertisers” at many places instead of media owners, creating confusion among the fraternity.
For instance, it states: “Advertiser has to obtain a No Objection Certificate from the Joint Commissioner of Police (Traffic) for illuminated or digital hoardings. In absence of an NOC from Jt. Commissioner of Police (Traffic), advertisement permits will not be granted / renewed for illumination.”
Besides, provisions regarding blacklisting of the “advertiser / permit holder” for frequent violations on account of non-payment of fees has been introduced.
Pawan Bansal, President of Indian Outdoor Advertising Association (IOAA), said, “The BMC policy has used the words agency / advertiser / permit holder interchangeably in the policy. At the end of the day in case of an untoward incident the media. The owner is responsible since he is the permit holder, the brand only takes the media for a short-term contract.”
Despite these concerns, the BMC is yet to address the issue or clarify the rationale behind this policy decision. Stakeholders argue that the nomenclature in the draft policy may be flawed, but until the BMC provides a definitive response, the industry remains in a state of uncertainty.
As the advertising sector grapples with the potential fallout of this policy, it remains to be seen how the BMC will address these concerns and whether any amendments will be made to alleviate the industry’s apprehensions.
Once approved, the new policy will oversee all outdoor advertising approvals, including digital formats, for the next decade from the date of issuance.
