The Central Government decision to amend the Drugs & Magic Remedies (Objectionable Advertisement) Act 1954 with severe penalty provisions and major changes in the rules with more powers to the regulatory authorities may force Indian Nutraceuticals and also Ayurvedic industry to cut their advertisement budget by more than half, according to Dr. Kuldip Raj Kohli, director of Dabur Research Foundation.
At present, the Indian ayurvedic industry alone advertises to the tune of over Rs 300 crore annually in print and electronic media for the promotion of certain specific nutraceuticals, healthcare products and services. With the proposed changes, the industry will have to refrain from advertising many products and that may cause a loss to the media to the extend of more than Rs 150 crore annually.
"Basically, the nutraceutical industry or cosmetics require massive promotion strategy to convey the message to the masses. Now you can advertise a hair oil with its Ayurvedic ingredients and its medical properties. With the amendment, when you claim the same hair oil has powers to control or cure dandruff, then the officials can cite this as a 'medical condition' and penalize the advertiser. With the amendment, the officials can define the medical condition and interpret it, since the list of 57 diseases and disorders that cannot be advertised are going to be dropped," noted Kohli.
He added that another area of concern was the proposed amendment to include treatment in clause 2(f) 'to mean and include treatment for any disease, disorder or condition' and includes 'any claim made to treat any disease, disorder or condition in human beings or animals.' This move will virtually ban any doctor or hospital advertising in media either directly or indirectly. At present many hospitals and doctors, especially some specialty Ayurvedic treatment centers advertise on their rare treatment methodology and efficacy of certain specific drugs with curative claims.
Dr. Kohli felt the government should have sought massive public referendum in media and discussion with industry and other stakeholders before framing the draft amendment and implementing such crucial changes in the law with far reaching consequences.