Crowd-sourcing platforms involved in raising funds for charitable causes will need to now disclose the amount of fees they charge in advertisements released for raising awareness for such causes, the Advertising Standards Council of India (ASCI) has announced.

Such ads, it said, also cannot use graphic images of distressed victims particularly children and minors and must not mislead consumers about the manner in which donations will be used. In digital ads, graphic images will need to be blurred and made visible to only those consumers who are interested in knowing more.

These are part of the guidelines for ads for charitable causes released by ASCI, in a bid to ensure transparency and sensitivity. This is the first time such guidelines have been issued, and they will be applicable from August 1.

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The guidelines state that advertisements for a charitable organisation or crowd-sourcing platform for charity cannot “overtly or pointedly suggest” that anyone who does not support the charity fails in their responsibility or should feel ashamed. Such ads also must not disrespect the dignity of those on whose behalf an appeal is being made especially by showing graphic images of victims in distress, particularly children and minors.

”An advertiser must be able to produce evidence of express consent for the use of images of beneficiaries if asked to do so. In digital ads, any image that could cause unjustified distress to an ordinary consumer must be blurred and made visible only to those interested in knowing more,” the self-regulatory industry body stated

‘Don’t mislead’

The advertisements must also carry disclosures if the funds raised for a specific cause or beneficiary may be used for other purposes or beneficiaries. “Ads must not mislead consumers about where or to whom their donations are going. If a crowdsourcing platform collects a percentage or fee for managing or raising donor funds, it must be made clear what such amounts are in the advertisement itself,” the guidelines added.

Stating that in recent years charities and crowdfunding platforms have become active advertisers, ASCI pointed out about growing concerns about such ads causing donor distress due to usage of graphic images.

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“While the intent of such posts is undoubtedly to nudge donors to contribute, such posts may cause undue distress to ordinary consumers who may be surfing through their news feeds. In addition, with crowd-sourcing platforms, consumers may not know what amount, from their donation, goes to the beneficiary and what may be kept by the platforms for their administrative fees or charges,” the self-regulatory body noted.

The guidelines are in line with ASCI’s code which requires ads to be honest and truthful.

Manisha Kapoor, CEO and Secretary General, ASCI said, “ASCI recognises that charities can have a challenging job explaining the nature of the important, and often sensitive work they do, and raise funds for beneficiaries in need. However, they must take care not to overstep the mark by misleading consumers or causing unjustified distress to those who may be merely surfing online. The guidelines strike a balance between allowing charities to do their important work, and at the same time, be fair to consumers who are viewers of such advertisements.”

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