Meta’s New Ad Policy. Are Profits Worth the Risk to Public Health and Youth Safety? Alcohol and Gambling Ads to Flood Indian Social Media

In a decision sparking global ethical concerns and alarming public health experts, Meta has announced that beginning August 27, 2024, it will allow alcohol and real-money gambling advertisements on its platforms across India, the Asia-Pacific (APAC) region, and Latin America (LATAM). This move is seen as a perilous risk to the health and safety of millions, particularly vulnerable young users, as it paves the way for ads promoting potentially addictive and harmful products.

Background

Meta’s announcement comes at a time when the world over, including in India, governments are finally taking cognizance of the challenges in regulating alcohol and gambling—two sectors eminently vulnerable to addiction risks and concerns to public health. The Indian regulatory environment has always been tight regarding advertisement in the case of alcohol and, much more, gambling, given the likely effects on society. Now, adding to that, the ad stakes of alcohol and gambling are entering social networking platforms like Facebook and Instagram with billions of users globally.

The WHO has been warning for years of the dangers of alcohol advertising, especially in countries where consumption is on a steady rise. It has been shown that exposure to alcohol advertisements increases the likelihood of young people starting to drink, while also raising amounts consumed by those who are already drinking. The liquor market of India is already estimated at $45 billion, the largest in the world, and is reaching further heights of consumption that can further compound current public health problems.

Implication of the Decision

A Meta decision at this level has implications that reach much further than the increase in ad revenues it would bring. Some of the key concerns are those related to public health, regulatory challenges, and ethics. Among them are:

Public Health Risks

There is a serious concern about increasing alcohol use disorders and gambling addiction. By normalizing these risky behaviors through targeted advertising, Meta is formally advancing the culture that might turn out to be really dangerous in terms of serious public health crises. According to the World Health Organization, alcohol is one of the causes of non-communicable diseases, such as cirrhosis, cancers, and cardiovascular diseases. It is not a small matter that young audiences are susceptible to this kind of marketing. With millions of users under the age of 25, it’s clear that Meta is putting profits over users’ safety.

In a populous country like India—now having the largest youth population globally—the detrimental effect of such ads could prove disastrous. Young people are much more susceptible to the persuasive power of advertising; therefore, early exposure to advertisements for alcohol and gambling might be the cause of lifelong struggles with addiction. This is not at all speculative; rather, studies constantly prove that, yes, advertising does play a significant role in shaping young people’s attitudes and behaviors toward alcohol and gambling.

Regulatory Chaos

The Indian government was already confused and berated with how to regulate gambling and alcohol advertising. Meta’s decision further adds to this messy regulatory environment. In the absence of an overall umbrella framework, such unscrupulous operators could exploit this new opportunity to get away with increased illegal gambling activities, hence further confusing the situation for the truly legitimate businesses. The attention of the decision of Meta has been interpreted as both an opportunity and a threat to the Indian real-money gaming industry that has, till date, been operating in a regulatory grey area.

While this may be quite tempting, given the likelihood of greater exposure and inductively legitimizing the industry, grave reservations arise from manifold risks of intensified competition from non-regulated platforms, thereby setting a landscape that makes illegal operators thrive at the expense of customers. This may also increase consumer risks, apart from being harmful to efforts for the setting up of well-regulated gaming environments.

Ethical Concerns

There are grave ethical concerns associated with allowing advertisements for addictive products. Thus, the marketing of alcohol and gambling to young audiences, at large, over social media does stand as a moral question. Both public health advocates and industry leaders reacted with shock at the move, sighting that it placed corporate profit over ethical advertising.

“Morally, I don’t think these addictive products and services should be advertised on social media,” said Yash Chandiramani, Founder and Chief Strategist at Admatazz. The move is a clear indication that Meta values revenue over responsibility”.

Of course, there is another ethical concern, the audience that might be most vulnerable to their influence. Even though Meta assured that it would implement safeguards to ensure that these ads are not exposed to underage users, there stands the very real risk that digital platforms often fumble in enforcing such measures. The risk that these advertisements are going to fall through the cracks and be shown to underage users is one too great to ignore.

Industry Reactions

The reactions have been mixed, thus mirroring how complicated the situation is.

Alcohol Industry: So far, many of the players in the overall industry for alcohol have welcomed the step that Meta took in many circles; this was seen as an opening to work with the consumers in new and exciting ways. One of the top leaders of a large alcohol company commented, “This is great news for us.”. “We have so many restrictions on how we can engage with our customers, and this new policy can engage us with our consumers in a very different way. At the same time, there is also an eagerness to acknowledge what its implications are for society at large in encouraging the use of products that are potentially harmful “.

From this angle, the view is economically advantageous but does not consider the public health perspective in the long run. Real Money Gaming Industry: On the other hand, the real-money gaming industry has reacted with much concern.

Industry insiders cautioned that this increased competition from offshore gambling platforms staying outside the ambit of regulatory controls muddied the waters for legitimate businesses. “Our industry is currently seeking clarity on illegal betting and gambling versus legitimate real money gaming,” a senior official from a fantasy gaming platform said.

“Meta’s move will only add to the confusion and probably lead to a spurt in illegal gambling activities.”. The Need for Urgent Action Just as Meta is getting ready to enforce this controversial policy, there couldn’t be a greater need for an omnibus regulatory framework in the country. Lack of clarity has given birth to an enabling environment for unethical operators to take over and put consumers at risk. DoCA and MIB must take urgent action in establishing regulations safeguarding the public from possible harms coming out of alcohol and gambling advertisements.

Public health experts say multisectoral efforts, specifically tighter advertising regulation, information, and support for those with addictions, need to be set in motion. Without these, a decision like the present one by Meta can turn the course toward a new frontier of unabated marketing driven by profit over public health and puts a whole generation in jeopardy.

Viewpoint

Meta’s decision to allow advertisements promoting alcohol and gambling on their platforms is a dangerous gamble that puts profit over the health of the public. The policy is set up to be so consequential for the future that one cannot afford to look away. As the implementation date nears, it becomes incumbent on regulators, industry leaders, and public health advocates to come together around the potential risks this reckless decision might pose.

All stakeholders must build bridges of constructive dialogue to set a regulatory course of action that will truly help protect those who are most vulnerable from the perils of targeted advertising. Otherwise, such a step by Meta might unleash a new age of unrestrained marketing, where profit takes precedence over public health and a generation is put at risk.

This decision, on the part of Meta, is beyond a business decision it fundamentally shifts things in ways that could resonate across public health and consumer protection for many years to come. The world is watching, and we can’t afford to let corporate interests dictate the terms of public health policy. Too much is at stake to just keep quiet about this.