Real Estate Sector Falls Foul of Ad Codes: MahaRERA Penalises 628 Developers
The real estate sector has emerged as the biggest offender of advertising standards, with MahaRERA penalising 628 developers for violating regulatory requirements.
Real EstateAdvertising StandardsMahareraAsciPenaltiesReal Estate MaharashtraNov 26, 2024
ASCI examined 4,016 complaints and scrutinised 3,031 advertisements for potential breaches of the ASCI Code. Among these, 1,027 real estate commercials were shortlisted from a total of 2,115 screened in Maharashtra. These ads were primarily reviewed for compliance with mandatory disclosure norms, which include the presence of registration numbers, QR codes, and other essential information.
Alarmingly, 99 percent of the shortlisted real estate ads were found to be non-compliant with the MahaRERA Act. ASCI reported prompt compliance in 59 percent of the cases, where advertisers either modified their ads to include the missing information or withdrew them altogether. However, non-compliant ads were flagged to MahaRERA for further action, resulting in the penalisation of 628 real estate developers. The total penalty imposed amounted to Rs 88.90 lakh, covering various violations of the regulatory requirements.
The Maharashtra Real Estate Regulatory Authority (MahaRERA) plays a crucial role in ensuring that real estate developers adhere to the stringent regulations set forth by the government. The authority’s actions in penalising non-compliant developers aim to restore consumer trust and maintain transparency in the real estate market.
The second most violative category identified by ASCI was illegal betting and gambling. A total of 890 ads were referred to the Ministry of Information and Broadcasting for action. Among these, 831 Instagram posts displayed betting tickers, directing viewers to offshore betting platforms. Page owners were reportedly earning daily amounts between Rs 2,000 and Rs 3,000 by featuring these logos. Additionally, 50 websites and social media pages were identified as promoting illegal betting apps and platforms, and nine influencer posts were found endorsing illegal betting services.
Greenwashing claims in advertisements emerged as the third biggest violator. ASCI reviewed 100 advertisements for potential violations of the ASCI Guidelines for making environmental/green claims, a significant increase from the 34 ads reviewed in 2023-24. The majority of these ads were from the homecare sector, where products claimed to be eco or environment-friendly without adequate supporting data. Twenty-eight percent of these cases were reported to the government for non-compliance with the ASCI code and guidelines.
The Advertising Standards Council of India (ASCI) is a self-regulatory body that ensures advertising standards are upheld across various industries. It plays a vital role in protecting consumers from misleading or exaggerated claims in advertisements. By scrutinising and penalising non-compliant ads, ASCI aims to maintain the integrity of the advertising industry and ensure that businesses operate within the legal framework.
Frequently Asked Questions
What is the main reason for the high number of non-compliant real estate ads in Maharashtra?
The main reason is the lack of adherence to mandatory disclosure norms, including the absence of registration numbers, QR codes, and other essential information in the ads.
How many real estate developers were penalised by MahaRERA?
MahaRERA penalised 628 real estate developers for various violations of the regulatory requirements.
What was the total penalty imposed by MahaRERA on non-compliant developers?
The total penalty imposed amounted to Rs 88.90 lakh.
Which category of ads was the second biggest violator after real estate?
The second most violative category was illegal betting and gambling.
What is the role of ASCI in the advertising industry?
ASCI is a self-regulatory body that ensures advertising standards are upheld across various industries. It protects consumers from misleading or exaggerated claims in advertisements and maintains the integrity of the advertising industry.
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