India’s digital advertising ecosystem is increasingly being driven by a 'speed-first, compliance-later' culture, with misleading claims, offshore betting promotions and influencer violations emerging as major concerns, according to the Advertising Standards Council of India’s (ASCI) annual complaints report for FY25-26.
The self-regulatory body said it examined 11,581 cases during the year, marking a 21% increase from the previous year, while the number of advertisements scrutinised for potential violations surged 37% to 9,841 ads. ASCI noted that 98% of the scrutinised advertisements required modification.
Commenting on the findings, ASCI chairman Sudhanshu Vats said the advertising ecosystem was being reshaped by 'ntense competition, speed and digital amplification'.
He said the growing prevalence of exaggerated claims, manufactured scientific credibility and influencer-led amplification reflected deeper structural issues within digital advertising.
The ASCI report showed that digital media overwhelmingly dominated the violation landscape, accounting for 97.3% of all ads scrutinised for breaches of the ASCI code. Sponsored advertisements on social media platforms formed the bulk of these violations.
ASCI said 93% of the ads examined were identified through its proactive monitoring systems, while only 7% came from consumer complaints and other sources.
The report attributed the sharp increase in cases largely to aggressive monitoring of offshore betting and gambling advertisements, which are prohibited under Indian law. ASCI said it flagged such advertisements to the Union ministry of information and broadcasting (MIB) and the Indian cybercrime coordination centre (I4C).
Offshore betting advertisements emerged as the single largest violative category, accounting for 6,933 ads, or more than 72% of all violations requiring modification. Realty, personal-care and food and beverage sectors followed behind.
ASCI warned that offshore betting operators continue to aggressively target Indian consumers despite regulatory crackdowns and the implementation of the Promotion and Regulation of Online Gaming Act (PROGA) in August 2025.
According to the report, ASCI identified and escalated 7,927 offshore betting advertisements between January and December 2025, with 6,933 ads flagged during April-December 2025 alone.
The report said the volume of offshore betting advertisements actually increased after PROGA came into effect, rising from an average of 594 ads per month before the law to 795 ads per month afterwards.
ASCI said sponsored advertisements on Meta platforms remained particularly persistent even after the new legislation.
The advertising watchdog also highlighted growing concerns around influencer-driven promotions. It processed 1,609 advertisements involving influencer violations during 2025-26, of which 97.3% required modification.
More than half of the influencer violations involved promoting products or services prohibited by law, including offshore betting and alcohol-related advertising.
ASCI said 869 influencers were found promoting illegal betting or alcohol-linked advertisements, while some accounts were dedicated almost entirely to such content.
The report further noted worsening compliance levels among leading digital influencers. According to ASCI, 76% of influencers featured in Forbes India’s Top 100 Digital Stars list for 2024 were found to be in contravention of advertising rules in 2025, compared with 69% in the previous year.
The regulator said influencer marketing now plays a central role in consumer purchasing decisions, making transparency and disclosure obligations increasingly critical.
The personal-care sector also remained under scrutiny for exaggerated efficacy claims and misleading scientific representations. ASCI processed 639 cases in the category, with 90% of advertisements requiring modification.
The report identified recurring patterns such as unrealistic promises of instant results, hyper-specific numerical claims intended to mimic scientific precision and unverified 'natural', 'chemical-free' or 'safe' product positioning.
ASCI said advertisers routinely made dramatic claims such as eliminating dandruff in one wash, reducing dark circles in seven days or making skin appear years younger within days, often without adequate substantiation.
The watchdog also flagged widespread misuse of influencer endorsements in the category, with creators presenting personal experiences as universally guaranteed outcomes.
The food and beverage sector also saw an increase in misleading health and wellness claims, particularly in the nutraceutical segment. ASCI processed 376 cases in the sector, with nutraceutical products accounting for 52% of total violations.
The report warned against advertisements claiming to reverse fatty liver disease, regulate blood sugar, cleanse the gut or deliver rapid weight loss without medical evidence.
ASCI also raised concerns about 'drinkable sunscreen' products marketed as offering all-day sun protection through oral consumption, warning that such claims could dangerously mislead consumers into avoiding proper topical sunscreen.
The regulator said many such advertisements targeted vulnerable consumers, including parents concerned about children’s growth and individuals seeking rapid weight-loss solutions.
Real estate advertising also emerged as a major area of concern. ASCI said 643 cases were found to be in violation of Telangana real estate regulatory authority (TGRERA) rules and/or the ASCI code.
Many advertisements failed to disclose mandatory details such as project registration numbers, statutory approvals and website information, potentially misleading home-buyers.
Separately, the report identified 274 advertisements in violation of the Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954. A majority of these involved claims relating to sexual performance, virility, stamina enhancement and miracle cures for diseases.
ASCI said such advertisements exploited vulnerable consumers and exposed them to potential harm.
ASCI chief executive officer (CEO) and secretary general, Manisha Kapoor, said the findings underscore the urgent need to move from reactive corrections to preventive governance.
“The findings point to the urgent need for a systemic shift from reactive correction to preventive governance,” Ms Kapoor said.
She added that stronger pre-publication checks, better advertiser verification systems and scalable detection mechanisms would be critical for building a more responsible advertising ecosystem.
The report concluded that harmful and misleading advertising practices are becoming increasingly sophisticated and widespread in India’s rapidly evolving digital economy, posing growing risks to consumer trust, financial safety and public wellbeing.
