Consumer Protection Act, 2019Consumer Protection Act, 2019
Misleading advertisements are those that "falsely describe the product or service; give a false
guarantee; are likely to mislead the consumers as to the nature, substance, quality, or quantity of
such product or service; or deliberately conceal important information about the product or
service," according to the Consumer Protection Act of 2019.
The Central Consumer Protection Authority (CCPA) was established to protect consumers' rights
from deceptive or false advertising. The CCPA may launch an investigation into deceptive advertising
on its own initiative or in response to a complaint. If it is determined that the advertisement is
deceptive, the CCPA may mandate its alteration and levy a fine of up to Rs. 10 lakhs. After
conducting a preliminary investigation, the CCPA may also report the matter to the pertinent
regulator created by any other statute.
Recently, the CCPA has made headlines for allegedly ordering the removal of toothpaste brand
advertisements featuring recommendations from dentists working in other nations and for allegedly
ordering an investigation into the product's lofty claims, including "recommended by dentists
worldwide" and "world's no. 1 sensitivity toothpaste."
It's interesting to note that under the Drugs and Magic Remedies (Objectionable Advertisements)
Act of 1954 (DMRA), drug advertisements that directly or indirectly misrepresent the true nature of
the drug, make unsubstantiated claims about the drug, or are otherwise false or deceptive in any
material respect are prohibited. The advertiser would be subject to criminal prosecution, which
might result in up to six months in prison and/or a fine, for any advertisements that violated this
provision. A proposed modification to the DMRA would increase the maximum sentence to two
years in prison and a fine of up to Rs 10 lakh.
The Advertising Standards Council of India (ASCI) is a self-regulatory organisation that controls
advertisements in all industries to protect consumers' interests. The Code for Self-Regulation in
Advertising seeks to govern deceptive advertising practises and content. The Consumer Complaints
Council (CCC) of the ASCI investigates complaints about ads that are purportedly in breach of the
Code for Self-Regulation or takes action on its own initiative. Additionally, the Ministry of AYUSH and
other regulatory bodies have joined forces with the ASCI to control deceptive advertising.
At first look, it seems that all of the authorities' jurisdictions regarding deceptive marketing overlap.
However, it should be remembered that the DMRA forbids medications from making statements
that are deceptive to consumers, the ASCI considers whether the advertisement is an accurate
portrayal of the product being advertised, and the CCPA considers whether the rights of consumers
may be affected. In order to safeguard consumers, each regulatory agency will evaluate the
advertisement using different criteria and with differing degrees of rigour.
Legislators in the modern era place a high priority on ensuring that marketing laws are followed in
order to safeguard consumers. Reputable international and Indian businesses have a strong culture
of abiding by the rules, laws, and policies established for good governance. Every business must
make sure that thorough written rules for marketing and advertising are implemented and ingrained
in their standards of professional behaviour. These policies and procedures need to be revised
frequently to reflect the evolving legal landscape, and personnel need to get regular training through
training sessions, seminars, conferences, and lectures. Last but not least, before being distributed to
the general public or consumers, all advertisements and marketing materials for any medium should
be properly examined in accordance with the company's policies and processes.
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