Meta's WhatsApp ad policy fuels industry debate over alcohol and gambling

Meta recently clarified its WhatsApp business messaging policy update following multiple industry reports suggesting that alcohol and gambling ads would be permitted on the platform in India, raising concerns due to the prohibition of these categories in the country. The development sparked debates among industry experts regarding the policy’s implications—some ad agencies welcomed the change, while other stakeholders expressed caution.

Meta has emphasised its commitment to local laws, explaining that some business messaging would still be restricted based on country-specific regulations. Its gambling ad policy requires approval and restricts targeting to those over 18. In India, direct ads for alcohol and gambling are banned, and companies often use surrogate advertising to skirt these rules. However, the government is increasingly cracking down on these practices, particularly during high-profile events like the Indian Premier League (IPL). While some Indian states allow ads for fantasy sports, others enforce strict bans.

While it appears that the issue concerning ads related to alcohol and real-money gaming on Meta platforms has ended abruptly, Campaign asks industry experts about the repercussions of such an eventuality in the future, whether age-gating can prevent minors from accessing these ads, and who will be liable for breaching the tenets of responsible marketing—the social media platforms, the brand, or its media agencies?

Shabbir Shora
Advocate
Bombay High Court

Advertisements for gambling in India are regulated by specific laws. State governments are empowered to promote or prohibit lotteries within their territorial jurisdiction. In light of the online gambling ‘game’ and real money gambling apps, the Ministry has issued advisories from time-to -time for the media, including social media platforms, to refrain from publishing or broadcasting advertisements of online betting platforms and any such product/service depicting these platforms in a surrogate manner. Advertising alcoholic beverages has been banned in India since 2000 as per the Cable Television Network (Regulation) Amendment Bill. Private channels often permit alcohol companies to advertise using surrogate means, such as selling the brand name for soda, water, or music.

Meta, a company that earns from advertising to the masses, has played its best move to initiate advertisements of alcohol and gambling, but at what cost? Several other brands are already in the foul, as their ads are being aired with well-known artists and celebrities endorsing gaming and betting apps. The respective ministries must have a board for such advertisements, and only after receiving assent to the authenticity of the company, should such advertisements be aired to avoid and weed out fraudsters.

Kshitij Kaul
Director
Outlook Media India

Meta's recent move to permit the promotion of alcohol and real money gambling on its platforms, starting 17 August 2024, raises significant concerns about regulatory compliance, especially in regions with stringent laws like India. While Meta asserts adherence to local guidelines, the challenge lies in ensuring that ads targeting audiences in LATAM do not inadvertently breach Indian regulations. The risk of such ads trickling into India poses potential legal issues. Liability in such cases could be complex, involving the social media platform, the brand, and possibly the media agency. The onus falls on Meta to implement robust geo-targeting and ad content monitoring mechanisms to prevent cross-border regulatory conflicts.

For ad agencies, managing content in highly regulated sectors like alcohol and real money gaming requires meticulous adherence to local laws and a proactive approach to responsible marketing. They must ensure that campaigns are not only compliant with regional regulations but also align with ethical advertising standards to mitigate regulatory risks and uphold brand integrity across diverse markets.

Mahesh Devrani
Partner—Digital
SPAG FINN Partners

Just as we do not ignore the presence of an alcohol shop in our neighbourhood or a casino while travelling, we shouldn't impose overly restrictive regulations on digital advertising, especially when these industries have historically utilised surrogate advertising methods and are already connecting with audiences through many other avenues.

Meta's recent policy change can transform the digital advertising landscape, encouraging companies to allocate more of their budgets to official promotional channels and aligning with local regulations. This shift is driven by the potential for targeted advertising that Meta's platforms provide, compelling brands to adopt more responsible and personalised marketing strategies. While this presents a competitive edge for Meta, it’s important to address concerns about normalising risky behaviours among young consumers. In an open market, buyers should have access to information about all products and services, understanding that they can make informed decisions.

Advertising is just one piece of the puzzle, and it is ultimately up to consumers to choose how they engage, with the onus on governments and organisations to provide robust education and awareness programmes to help individuals understand the risks associated with gambling and alcohol consumption. A well-informed public is the best defence against potential harms, rather than blanket bans or heavy-handed regulations on advertising.

Raghav Gupta
Co-founder and founder
1% Club and Futurense

If this move is permitted, it will allow any advertising entity to jump in because Facebook's ad system lets almost anyone run ads with just an account; there is currently no strict upfront compliance check. Several fintech companies are already flouting the rules, because there is often a lag in the process.

In the beginning, Facebook might allow ads to run, and only after a few weeks will they start flagging them. In the interim, many people could take advantage, run their ads, and potentially scam others before this lag could create a significant risk. Fortunately, AI can play a crucial role in keeping this content away from minors. Platforms like Meta can rely on it to analyse consumer patterns and categorise people based on what they follow and the age group they belong to.

One of the strongest measures would be tying ad compliance to licensing. For instance, if a company is caught running ads that target vulnerable people or minors, they should risk losing their alcohol or gambling licence. Since this would directly impact their business operations, companies will think twice before engaging in such practices and would be careful about following the rules.

Anuraag Saxena
CEO
E-Gaming Federation

Thankfully, consumer protection regulations are robust in our country. Gambling is largely illegal in India, and advisories issued by the Department of Consumer Affairs (DoCA) and the Ministry of Information and Broadcasting (MIB) restrict the usage of digital platforms for certain categories of advertisements. I am sure platform operators in India will consider this decision in light of Indian laws and social realities and engage in dialogue with regulators, policymakers, and social organisations before implementing such a significant change.