# ASCI warns D2C funding boom masks compliance risks in ads 2026-08-20T07:04:47+00:00 | Governance | Indian Opinion Desk Corroboration: 1 independent outlet The Advertising Standards Council of India (ASCI) has warned that many well-funded D2C brands are using exaggerated advertising claims without evidence, a practice it calls the 'compliance fallacy'. Its secretary general writes that digital and social media now account for most advertising complaints, with young D2C brands repeatedly making unsupported claims such as 'clinically proven', 'zero side effects', or 'doctor recommended'. ASCI says the same instinct that lets founders overstate product claims later shapes how boards are briefed and metrics defined, turning a marketing problem into a governance one. It points to a children's tutoring platform and a celebrated digital-first company that collapsed after aggressive claims and pushy sales tactics, noting ASCI had flagged their advertising as risky years earlier. The regulator calls on investors to scrutinise advertising claims as rigorously as financial statements, and warns that discovering risks only after a regulator, consumer backlash, or failed transaction is too late. It urges founders to see truthful, supportable claims as an asset, not a burden, and says ASCI now helps advertisers get claims right before campaigns go live. ## Indian Opinion Analysis The author heads the advertising industry's self-regulatory body, so the article carries the perspective of a regulator urging pre-compliance rather than punitive action. India's D2C sector has attracted over Rs 40,000 crore in funding since 2020, yet consumer complaints about misleading ads are rising sharply, with ASCI processing over 7,000 complaints in 2023-24 alone. The real risk flagged here is that aggressive marketing claims signal weak internal governance, and a regulatory crackdown, like the one that hit Byju's and other edtech firms, could wipe out investor value overnight. The upcoming ASCI guidelines for green claims and influencer advertising, due for public consultation this quarter, will test how seriously the industry takes this warning. ## Coverage - brandequity.economictimes.indiatimes.com Article is a commentary by ASCI's secretary general, framing D2C advertising non-compliance as a systemic governance risk that investors overlook, with a pro-regulation stance. This story was synthesised by AI from the source linked above. Tags: Advertising Standards Council of India, ASCI, consumer protection, D2C, startups Canonical: https://indianopinion.org/asci-warns-d2c-funding-boom-masks-compliance-risks-in-ads/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/asci-warns-d2c-funding-boom-masks-compliance-risks-in-ads/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes. How this brief was made: an AI model read the report linked above and wrote this summary and analysis, which were published automatically. Published briefs are sampled every hour by an automated quality check; the editor verifies its findings and approves corrections, and corrected briefs carry a dated correction line. We do no original reporting. Methodology: https://indianopinion.org/ai-use-policy/