- Advertisers must submit self-declarations before promoting products in the media.
- Advertisers are now obligated to declare that their advertisements do not deceive or make untrue statements about their products in order to prevent misleading consumers.
- Advertisers intending to run TV ads must upload declarations on the 'BroadcastSeva' portal, which serves as a one-stop facility for stakeholders to request permissions, registrations, and licenses for broadcast-related activities from the Ministry of Information and Broadcasting.
- A similar portal for print advertisers is to be established.
- Social media influencers, celebrities, and public figures endorsing products must act responsibly.
- Endorsers should possess adequate knowledge about the products they promote to avoid deceptive advertising.
- Establish a transparent process for consumers to report misleading advertisements and ensure they receive updates on complaint status and outcomes.
What Recent Cases of Misleading Advertisements have Emerged?
- The Advertisement Monitoring Committee at Food Safety and Standards Authority of India (FSSAI) identified 32 cases of misleading claims by food business operators (FBOs) bringing the total count of such violations to 170 in the last six months.
- Variety of Offenders: Violators span diverse product categories, including health supplements, organic products, and staples.
- The Indian Medical Association accused Patanjali of denigrating allopathic medicineand spreading false information about vaccines during Covid-19.
- The allegations led to legal arguments citing violations of the Drugs & Other Magical Remedies Act, 1954, and the Consumer Protection Act, 2019.
How Do Misleading Advertisements Violate Ethical Principles?
- Violation of Truthfulness: Honesty and truthfulness are essential ethical principles that should guide all business practices, including advertising.
- These advertisements manipulate consumer perceptions and exploit vulnerabilities for commercial gain; they persuade individuals to make purchasing decisions based on false premises.
- This violates the principle of fairness and justice in the marketplace, as it disadvantages honest competitors and undermines consumer trust.
- Example: Companies making false environmental claims (greenwashing)tocapitalize on the growing demand for sustainable products, while their competitors truthfully disclose their environmental impact.
- It can also harm consumers' physical or mental well-being if the advertised products or services are potentially harmful or ineffective.
- When consumers feel deceived, they lose confidence in the market's integrity, as words and actions become inconsistent.
How Misleading Advertisements are Regulated in India?
- Definition of Misleading Advertisement:
- A misleading advertisement is defined under Section 2 (28) of the Consumer Protection Act, 2019, as any advertisement that:
- Provides a false description of a product or service;
- Offers false guarantees that mislead consumers;
- constitutes an unfair trade practice through express representation;
- Deliberately omits essential information about the product.
- The Central Consumer Protection Authority (CCPA) operates under the Department of Consumer Affairs.
- Established under section 10 of theConsumer Protection Act, 2019, it regulates matters related to consumer rights violations and unfair trade practices.
- The act empowers the CCPA to prevent false or misleading advertisements and ensure consumer rights are protected.
- Enforcement of Guidelines:
- The CCPA enforces the ‘Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022’, which were issued per the powers conferred by the Consumer Protection Act, 2019.
- Objective of the Guidelines:
- The guidelines seek to ensure that consumers are not being fooled by unsubstantiated claims, exaggerated promises, misinformation and false claims.
- Such advertisements violate various rights of consumers such as the right to be informed, the right to choose and the right to be safeguarded against potentially unsafe products and services.
- The guidelines define "bait advertising", "surrogate advertisement" and "free claim advertisements".
- They also lay down provisions to protect children from exaggerated or unsubstantiated claims in advertisements.
- Advertisements targeting children are prohibited from featuring personalities from sports, music, or cinema for products that require a health warning or cannot be purchased by children.
- This aims to help consumers make informed decisions based on facts.
- CCPA can impose penalties of up to 10 lakh rupees on manufacturers, advertisers, and endorsers for misleading advertisements.
- For subsequent violations, the penalty can be up to 50 lakh rupees.
- Deceptive advertising falls under Section-53 of the Food Safety and Standards Act, 2006, making it punishable. FSSAI mandates advertisements to be truthful, unambiguous, and substantiated scientifically.
- FSSAI uses the Food Safety and Standards (Advertisements & Claims) Regulations, 2018 which specifically deal with food (and related products) while CCPA’s regulations cover goods, products and services.
- ASCI (Advertisement Standard Council of India):
- It is a nonstatutory tribunal established as a self-regulated mechanism to introduce advertising ethics in India.
- It judges advertisements based on its Code of Advertising Practice, also known as the ASCI codewhich applies to advertisements seen in India, even if they are from abroad and directed at Indian consumers.
- Grants consumers the right to be informed about goods and services' quality, quantity, and price.
- Section 2(r) covers false advertisements under the definition of unfair trade practices.
- Prohibits transmission of advertisements that do not conform to the prescribed advertisement code.
- Ensures advertisements do not offend morality, decency, or religious sensitivities.
- Prohibits direct and indirect advertisement of tobacco products in all forms of media.
- Enforced under the Cigarettes and Other Tobacco Products Act, 2003.
- It regulates drug advertisements. Prohibits the use of test reports for advertising drugs.
- Penalties for violations include fines and imprisonment.
- Prohibits advertisement related to prenatal sex determination under the Prenatal Diagnostic Techniques(Regulation and Prevention of Misuse) Act, 1994.
- Advertising harmful publications under the Young Persons (Harmful Publications) Act, 1956, is punishable.
- IPC prohibits obscene, defamatory, or inciteful advertisements.
- Offenses related to inciting violence, terrorism, or crime are illegal and punishable under IPC provisions.
Initiatives for Consumer Protection
- Consumer Welfare Fund
- Integrated Grievance Address Mechanism (INGRAM) Portal
- Bureau of Indian Standards (BIS)
- Jago Grahak Jago Campaign
- National Consumer Day (24 th December)
- Central Consumer Protection Council.
- National and State Consumer Helplines.
Drishti Mains Question:
Q. Describe the legislative framework governing advertising practices in India. How do these laws and institutions contribute to maintaining ethical standards in advertising?
UPSC Civil Services Examination Previous Year Question
Prelims
Q.1 With reference to ‘consumers’ rights/privileges under the provisions of law in India, which of the following statements is/are correct ? (2012)
- Consumers are empowered to take samples for food testing.
- When a consumer files a complaint in any consumer forum, no fee is required to be paid.
- In case of death of consumer, his/her legal heir can file a complaint in the consumer forum on his/ her behalf.
Select the correct answer using the codes given below:
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2 and 3Ans: (c)
Mains
Q. What are social networking sites and what security implications do these sites present? (2013)
- A misleading advertisement is defined under Section 2 (28) of the Consumer Protection Act, 2019, as any advertisement that: