Nepal approves National Advertising Policy 2083, bringing digital ads, Influencers and AI-generated deepfakes under regulation

KATHMANDU: The Government of Nepal has approved the National Advertising Policy 2083, introducing a comprehensive regulatory framework aimed at modernizing the country’s advertising industry, strengthening consumer protection, and bringing digital advertising, social media promotions, influencer marketing, and artificial intelligence (AI)-generated content under formal oversight.

The policy, endorsed by Thursday’s Cabinet meeting, marks Nepal’s most significant reform of the advertising sector to date. It seeks to make the advertising industry more transparent, accountable, competitive, and technology-friendly while addressing challenges arising from rapid digital transformation and the growing influence of multinational corporations in the advertising market.

Digital advertising and AI-generated content brought under regulation

A major feature of the new policy is the regulation of digital advertising, particularly advertisements distributed through social media platforms, online content creators, influencers, and AI-powered technologies.

For the first time, advertisements created using AI-generated deepfake technology will be explicitly regulated under Nepal’s legal framework. The policy also mandates disclosure requirements for advertisements promoted through influencers and digital platforms, ensuring consumers can clearly distinguish paid promotional content from organic recommendations.

The government says the move is intended to enhance transparency in online advertising while preventing deceptive marketing practices that have become increasingly common in the digital era.

Consumer protection strengthened

The policy introduces stronger safeguards for consumers by targeting misleading, false, or deceptive advertisements.

Businesses that publish inaccurate or misleading advertisements could face regulatory action. More importantly, consumers who suffer financial or other losses due to deceptive advertising will be eligible to seek compensation under the new framework.

The government also plans to expand nationwide consumer education campaigns, advertising literacy programs, and public awareness initiatives to help consumers identify misleading advertisements.

Focus on economic growth and domestic industries

The government aims to significantly increase the advertising sector’s contribution to Nepal’s Gross Domestic Product (GDP) over the next five years.

The policy envisions advertising as an important driver of:

• Economic growth
• Employment generation
• Revenue collection
• Promotion of domestic industries
• Consumer rights protection

To encourage domestic production, Nepali goods and services will receive preferential support in advertising promotion.

Foreign companies marketing products and services in Nepal will also be required to allocate a specified portion of their business expenditure toward consumer awareness programs.

The policy further encourages transparency in advertising pricing, links advertising expenditure with the tax system, and provides incentives to sectors that have remained underrepresented in advertising.

Crackdown on disguised advertising and paid news

The government has also targeted the long-standing practice of blurring the line between editorial content and paid promotion.

The policy discourages:

• Presenting advertisements as news reports.
• Publishing news stories as advertisements.
• Favorable or unfavorable news coverage based on whether media outlets receive advertising revenue.
• Misclassifying promotional spending as other forms of business expenditure.

Authorities say legal and regulatory mechanisms will be introduced to prevent editorial decisions from being influenced by advertising relationships.

Ethical standards and social responsibility

The policy imposes stricter standards on advertising content to ensure advertisements do not discriminate against any community or vulnerable group.

Advertisements that promote:

• Violence,
• Obscenity,
• Gender discrimination,
• Child exploitation,
• Hate or prejudice based on caste, ethnicity, religion, language, culture, gender or community,

will face tighter regulatory scrutiny.

Special protections have also been included to ensure respectful representation of women, sexual and gender minorities, persons with disabilities, and marginalized communities.

The policy further prohibits advertisements that undermine Nepal’s sovereignty, national flag, national anthem, national personalities, religious harmony, or exploit disasters, tragedies, or public grief for commercial purposes.

Reforming government advertising

The government also plans major reforms to the distribution of public-sector advertisements.

An integrated information management system will be developed to improve transparency in the allocation and payment of government advertisements.

Under the policy:

• Local and provincial government advertisements will primarily be placed in media outlets operating at their respective levels.
• Public service advertisements will be distributed proportionately and equitably.
• Community media and outlets operating in local languages will receive greater support through government advertising.

The reforms are expected to improve fairness while strengthening regional and community-based media organizations.

Stronger institutions and regulatory framework

Institutionally, the policy proposes strengthening Nepal’s advertising governance system through coordination among federal, provincial, and local governments.

Key institutional reforms include:

• Expanding the authority and autonomy of the Advertising Board.
• Establishing provincial advertising monitoring and regulatory committees.
• Allowing local governments to form municipal advertising committees.
• Creating a National Advertising Council responsible for regulation, monitoring, and industry self-regulation.

The government also plans to establish an integrated information system, media database, and scientific classification and grading system for media organizations to improve transparency across the advertising ecosystem.

Advertising Fund to support industry development

To finance implementation, the government will establish an Advertising Fund, financed through government allocations, advertising-related fees, industry contributions, and other designated sources.

The fund will support:

• Advertising market development,
• Research,
• Industry data systems,
• Information banks,
• Media classification,
• Consumer awareness,
• Professional training and capacity building for advertising professionals.

The Ministry of Communications and Information Technology will review implementation annually, while the policy itself will undergo a comprehensive review every five years.

A milestone for Nepal’s digital advertising landscape

Industry observers say the National Advertising Policy 2083 represents a major modernization of Nepal’s advertising framework at a time when digital platforms, influencer marketing, and AI-generated content are rapidly reshaping global advertising practices.

By formally regulating social media promotions, influencer endorsements, AI-generated deepfakes, and digital advertising for the first time, the policy lays the foundation for a more transparent, accountable, and consumer-focused advertising ecosystem. It is also expected to strengthen regulatory oversight, improve public confidence in advertising, and align Nepal’s advertising industry more closely with emerging international standards governing digital media and artificial intelligence.