July 7, 2026
Kathmandu – The government has issued the National Advertising Policy 2026, bringing advertising conducted through social media and digital platforms under formal regulatory oversight.
The policy was approved at a cabinet meeting on Thursday. It aims to bring emerging technologies such as artificial intelligence, deepfakes, influencer marketing and sponsored content within a regulatory framework to address growing challenges in the advertising sector.
Under the new regulations, sponsored content and influencer marketing on social media must be clearly self-reported. The policy also encourages the use of modern technology in advertising and emphasizes capacity building of individuals and institutions working in this field to strengthen the advertising market as a whole.
Section 9.13 of the policy states that sponsored content and influencer marketing must be self-reported, and that ads created using artificial intelligence, including deepfake content, will be regulated. The policy aims to complete the implementation of this framework within two years through coordination between federal, state and local governments.
Ranjit Acharya, head of Prisma Advertising, said regulation of the use of AI and deepfakes in advertising is necessary, but implementation and monitoring will be key. “At a time when the identities of celebrities and influencers are being exploited globally, bringing this under regulation would address the huge challenges faced by creators,” he said. “But simply having rules is not enough; monitoring and enforcement will be the most difficult and important part.”
He said digital platforms, social media and influencer marketing have expanded significantly in recent years, but this is the first time they have been formally regulated. The policy assigns responsibility for regulating digital advertising to the Ministry of Information and Communications, with support from the Prime Minister’s Office, the Council of Ministers, and the Advertising Commission.
Acharya added that both the ministry and regulators need to have digital facilities to monitor advertisements on online platforms. “Without proper preparation and infrastructure, there is a risk that policy will remain on paper,” he said.
Laxman Humagain, former chairman of the Advertising Commission, also stressed that the policy alone is not enough and strong laws will be needed to implement it. “If properly enacted and enforced, Nepal’s advertising market could start showing positive effects within two to three years,” he said. “This is Nepal’s first comprehensive advertising policy. For the first time, coordination among all three tiers of government has been ensured in regulation and oversight.”
The government plans to ban misleading, false and legally prohibited advertisements that have a negative impact on consumers. The policy also aims to balance advertising across traditional and digital media. Article 9.15 states that the ratio of advertising between traditional and digital platforms will be determined. It will also provide support to start-ups and small businesses, allowing them to spend a certain amount on social media and digital advertising.
The policy further seeks to clearly separate news and advertising within media content. This is intended to prevent the presentation of advertisements as news and vice versa, and to prevent news coverage from being influenced by whether or not an advertisement is published. Clause 9.8 states that such conduct is discouraged.
To protect consumers, this policy includes indemnification provisions if false or misleading advertising causes harm. It provides that consumers are entitled to compensation for losses caused by such advertising.
Advertisements that harm national interests or confidentiality are strictly prohibited. This includes any content that disrespects Nepal’s flag, national anthem, and the country’s heroes and celebrities. The policy states that advertisements that undermine sovereignty, territorial integrity, independence, national unity, religious and ethnic harmony are not allowed.
The government also aims to strengthen the Advertising Commission to ensure effective implementation of the policy. Advertising is regulated by federal, state, and local governments. The policy sets a goal of increasing the advertising sector’s contribution to gross domestic product within five years.
To combat unhealthy competition and ensure scientific pricing in the advertising market, the policy proposes the establishment of an integrated information system and data bank.
A dedicated advertising fund will also be established based on current law. The fund is funded by government grants, fees, contributions from various institutions and donor organizations, and revenue from advertising deals.
The government concluded that a separate national policy is needed to regulate emerging trends such as social media advertising, digital platforms, influencer marketing and AI, and to ensure the participation of all levels of government and stakeholders while addressing both the opportunities and challenges in this sector.
Humanagain said that regulating AI-generated ads and social media ads is a global challenge, but Nepal has the capacity to implement such regulations. “We need a monitoring system. An advertising fund is proposed to fund this,” he said. “It would be managed through regulatory fees collected from the market without creating any additional financial burden on the state.”
However, advertisers have expressed concerns about the proposed advertising funding. Acharya said there was a need to clarify how the fund would be financed. “The market could be disappointed if additional taxes are imposed on advertising transactions or if advertising agencies lose benefits,” he said. “Such costs would ultimately be passed on to consumers, making this approach impractical.”
Humanagain argued that the policy should encourage advertisers and support the structure of the market, rather than restricting it. “It should not lead to restrictions or controls on the media,” he said. “The success of this policy will depend on coordination and effective implementation between the government and the Advertising Commission.”
