‘Exit WhatsApp groups, don’t discuss pricing’: AAAI’s legal advisor to agencies

In the wake of the ongoing Competition Commission of India (CCI) investigation into alleged cartelisation and anti-competitive practices, the legal advisory firm of the Advertising Agencies Association of India (AAAI) has issued a strong directive urging its members to ensure independent commercial decision-making.

The advisory (a copy of which is with e4m) dated March 26 comes in response to the recent CCI raids on AAAI offices and certain member agencies over suspected collusion in ad pricing and discounting practices.

It emphasises that agencies must independently determine their pricing strategies, output decisions, and business models without any form of coordination or exchange of commercially sensitive information.

According to the advisory, agencies should refrain from discussing pricing, market allocation, output quotas, tender participation, or any other commercially sensitive matters through emails, WhatsApp groups, meetings, or informal channels.

The advisory further instructs members to disassociate from any pre-existing WhatsApp groups where business sensitive discussions might have taken place.

“This is the first such advisory issued by the legal firm to agencies and the association on the CCI matter”, an official from Trilegal confirmed.

However, AAAI didn’t respond when e4m reached out to get their version. The copy will be updated as and when it reverts with details.

This move signals heightened scrutiny in the Indian advertising industry, as global headquarters of major ad networks are already seeking clarifications from their Indian counterparts following the CCI probe.

Given that many of these agencies are publicly listed overseas, any regulatory backlash in India could have farreaching consequences, including legal and reputational risks beyond Indian borders.

In addition to compliance measures, AAAI has reportedly also initiated a Knowledge Sharing and Training Program to educate members on competition law principles and industry best practices. Legal experts suggest that adherence to these guidelines will be critical in mitigating potential penalties and ensuring continued regulatory compliance.

An industry executive remarked, “This advisory is a clear signal that Indian agencies need to operate with heightened caution. Any misstep could trigger severe consequences, not just domestically but also internationally.”

With legal teams monitoring developments closely, the coming weeks will determine whether this advisory effectively helps agencies navigate the regulatory landscape or if further interventions from authorities will follow.