Digital Campaign Finance: The Missing Links in India’s Electoral Regulation

Context:
India’s electoral campaigning has undergone a structural shift towards digital platforms, where social media advertising, influencers, and campaign firms play a decisive role. However, the Election Commission of India (ECI) continues to rely on a regulatory framework designed mainly for traditional media and direct party expenditure, leading to serious transparency and accountability gaps in digital elections.

Key Highlights:

Regulatory Challenges in Digital Campaigning

  • Third-party actors (campaign firms, influencers, proxy pages) increasingly dominate digital political advertising.

  • Election spending is no longer confined to political parties and candidates, but flows through external entities, escaping effective scrutiny.

  • ECI directives focus primarily on candidates and political parties, leaving the wider digital ecosystem largely unregulated.

Evidence from Bihar Assembly Elections

  • Third-party advertisers outspent political parties and candidates on platforms like Meta (Facebook, Instagram).

  • They achieved greater visibility and impressions per ₹10 lakh spent, indicating higher cost efficiency.

  • Ad reach patterns differed:

    • Third-party ads were dispersed across age cohorts.

    • Party and candidate ads were concentrated among younger voters.

Legal and Disclosure Issues

  • The Supreme Court has ruled that no entity can publish advertisements benefiting a political party or candidate without authorization.

  • Despite this, external entities often fund advertisements appearing on official party pages.

  • Digital spending disclosures are opaque, frequently listing payments under platform names rather than actual funding or designing entities.

Limitations of Current EC Measures

  • The October 21 ECI notification attempted to widen regulation but:

    • Applied only to a narrow pre-poll window.

    • Focused largely on print media, not sustained digital campaigns.

  • Temporal framing is weak, as electoral influence builds over months through continuous online exposure.

Relevant Prelims Points:

  • Issue: Regulatory gaps in digital political campaigning.

  • Causes:

    • Rise of third-party political advertisers.

    • Inadequate adaptation of election laws to digital ecosystems.

  • Government Initiatives:

    • Media Certification and Monitoring Committee (MCMC) for pre-certification of political ads.

    • ECI guidelines on election expenditure reporting.

  • Benefits of Regulation:

    • Ensures free and fair elections.

    • Promotes financial transparency and accountability.

  • Challenges:

    • Ambiguous disclosure norms.

    • Reverse funding flows via third-party entities.

    • Limited enforcement capacity in digital spaces.

  • Impact:

    • Risk of electoral manipulation, unequal visibility, and distorted voter choice.

Relevant Mains Points:

  • Key Concepts & Definitions:

    • Third-party actors: Non-party entities like influencers, campaign firms, and proxy advertisers involved in electoral outreach.

    • Digital political advertisements: Paid political content on online platforms.

    • MCMC: Statutory body for monitoring and pre-certifying political advertisements.

  • Constitutional & Institutional Aspects:

    • Role of Election Commission of India under Article 324.

    • Supreme Court rulings on electoral fairness and advertisement norms.

  • Governance & Technology Linkages:

    • Intersection of electoral governance and digital technologies.

    • Challenges of regulating algorithm-driven political communication.

  • Concerns:

    • Accountability gap in campaign finance.

    • Inequitable influence of money through digital reach.

  • Way Forward:

    • Extend regulatory obligations to third-party actors.

    • Mandate granular disclosure of funders, designers, and beneficiaries of digital ads.

    • Regulate entire campaign duration, not just pre-poll windows.

    • Strengthen platform-level transparency norms in coordination with ECI.

UPSC Relevance (GS-wise):

  • GS Paper II – Polity: Role and powers of the Election Commission, electoral reforms.

  • GS Paper II – Governance: Transparency, accountability, and institutional adaptation.

  • GS Paper III – Science & Technology: Impact of digital platforms on democratic processes.

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