Brands
ASCI broadens the definition of celebrities in its code
Mumbai: The Advertising Standards Council of India (ASCI) has updated the definition of celebrities in its code to include social media influencers having a following of 500,000 or more.
The ASCI code has a specific guideline for celebrities which requires advertisements featuring celebrities to not violate the ASCI Code, and for celebrities to be familiar with the code in letter and spirit. Testimonials of celebrities must reflect their genuine, recent opinion and must be based on adequate information or experience about the product or service being advertised. The guidelines mandate that celebrities conduct due diligence to ensure that claims featured in the advertisements can be objectively verified and substantiated. Celebrities, when called upon, need to produce evidence of due diligence. Alternatively, the advertiser should have developed the advertisement following ASCI’s advertising advice. Additionally, the ASCI code requires celebrities not to participate in the advertisement of a product, treatment or remedies that are prohibited for advertising under the Drugs & Magic Remedies (Objectionable Advertisements) Act, 1954; and the updated Drugs & Cosmetic Act, 1940, and Rules 1945 (Schedule J).
Historically, celebrities who could lend credibility for brands and influence large masses of people largely comprised popular actors and sports personalities. However, in the recent years, the phenomenon of social media influencers has created new centres of mass-influence. In this scenario, it was necessary to broaden the definition of celebrities to include such influencers too.
The ASCI code now defines celebrities as individuals that:
● Get compensated Rs 40 lakh or equivalent value annually for appearing in advertisements or campaigns on any medium and any format
Or
● Have a social media following of 500,000 or more on any single social media handle
It may be noted that the Consumer Protection Act, 2019 puts the responsibility of due diligence on all endorsers, whether they are celebrities or not. However, due to the disproportionate influence and impact of individuals with large followership, ASCI requires celebrities to demonstrate a much greater responsibility in making sure that their followers do not get deceived or misled. ASCI has noticed a massive increase in ads featuring celebrities that are misleading. Versus the 55 ads that it processed in 2021-22, ASCI processed over 500 misleading ads featuring celebrities in 2022-23. This shows that in spite of their legal obligations, several celebrities continue to feature in ads that make misleading claims.
ASCI CEO and secretary general Manisha Kapoor said, “With the advent of social media and the increasing popularity of influencers on digital media, the definition of celebrities has come to change drastically. Earlier, only personalities from the world of sports or entertainment were considered celebrities. Today, however, the scenario is different. We have a range of personalities who are extremely popular on social media and share a close personal connection with consumers. These personalities affect the spending habits of consumers who trust them. So, it’s vital to ensure consumer protection – especially when celebrities endorse products or services that can cause serious financial loss and physical harm. This update widens ASCI’s ambit and includes all those personalities who have a notable influence as celebrities. With this, we have taken yet another important step in furthering the cause of consumer safety with regard to advertising.”
Brands
Microsoft faces worst quarter since 2008 financial crisis
Cloud giant battles soaring AI costs and fierce competition from nimble startups.
MUMBAI: When the tech titan starts looking a little wobbly, even the Magnificent Seven can feel the tremors because Microsoft is currently starring in its own sequel, “Clouds and Doubts.” Microsoft is on track for its worst quarterly performance since the 2008 global financial crisis, according to Bloomberg, as investors grow increasingly uneasy about rising capital expenditure and intensifying competition from nimble AI firms. The company has been pouring money into AI infrastructure, yet markets are questioning when these hefty investments will finally deliver stronger revenue growth.
At the same time, investors are shifting away from traditional software stocks amid fears that AI startups such as Anthropic and OpenAI are developing autonomous agents capable of replacing established products, including those from Microsoft. Jonathan Cofsky, portfolio manager at Janus Henderson Investors, noted growing concern that customers may bypass Microsoft and deal directly with AI vendors, potentially disrupting its core business and putting pressure on pricing and margins.
Microsoft’s stock has tumbled 25 per cent in the first quarter, putting it on course for its largest drop since a 27 per cent fall in the fourth quarter of 2008. It has also emerged as the weakest performer among the so-called Magnificent Seven technology stocks, while a broader index tracking the group has fallen 14 per cent over the same period. The shares slipped a further 1.7 per cent after markets opened on Friday, marking a potential fourth consecutive session of declines.
Cofsky pointed out that Microsoft has become more capital intensive and that improved investor confidence will hinge on assurances that software growth will not slow materially. Despite the sell-off, the stock is now trading at less than 20 times projected earnings over the next 12 months, its lowest valuation level since June 2016. Its valuation remains slightly above that of the S&P 500 Index, although it has recently traded at a discount to the broader benchmark for the first time since 2015.
Bloomberg data shows Microsoft’s capital expenditure, including leases, is expected to surge to $146 billion in fiscal 2026, up around 66 per cent from $88 billion in fiscal 2025. Spending is projected to climb further to $170 billion in fiscal 2027 and $191 billion in fiscal 2028, based on average estimates. Investors are growing cautious about such levels of spending without clearer signs of stronger growth.
Microsoft’s Azure cloud division has reported a slight slowdown in growth compared with the previous quarter, while its Copilot AI product has seen limited user traction, prompting internal changes aimed at improving performance. Ben Reitzes, an analyst at Melius Research, warned in a March note that Microsoft’s upside in Azure could be constrained as the company works to address challenges related to its AI models and Copilot offering, adding that these issues are unlikely to be resolved in the short term.
Of the 67 analysts covering Microsoft, 63 maintain buy ratings, three hold ratings and one a sell rating. The average 12-month price target of $592 implies a potential upside of more than 64 per cent, the highest on record based on data going back to 2009. The stock is also trading below its 200-day moving average by the widest margin since 2009.
Reitzes suggested the dominance of buy ratings may indicate complacency among analysts, while highlighting risks in Microsoft’s productivity and business processes segment as well as its More Personal Computing division. In contrast, Tal Liani of Bank of America reinstated coverage with a buy rating, citing durable multi-year growth prospects across cloud and AI. Jake Seltz, portfolio manager at Allspring Global Investments, maintained that Microsoft retains strong long-term value and that its AI strategy is likely to be validated over time, viewing near-term concerns as a potential opportunity for longer-term investors.
The report highlights a growing divergence in market sentiment, with optimism around long-term AI potential weighed against immediate execution risks and investor uncertainty. In the world of big tech, even the mightiest clouds can have silver linings but right now, Microsoft’s investors are scanning the horizon for clearer skies.
