False and Misleading Advertisements

False and misleading advertisements (Unfair trade practices)
under Consumer Protection Act, 2019
The new Consumer Protection Act 2019 allows customers to file complaints to
the Central Consumer Protection Authority, it is a newly constituted statutory
body to regulate and look after the consumer rights, the customers can complain
against any advertisement which is misleading in nature or conveys false
description of a product or such service. advertising is seen as misleading if it
involves false, misleading or deceptive information that is likely to cause the
average consumer to act in a way they might otherwise not. Advertising may also
be considered misleading if important information that the average consumer
needs to make an informed decision is left out. Misleading advertising covers
claims made directly to consumers by manufacturers, distributors and retailers,
as well as in advertisements, catalogues, websites etc. In a complaint for
misleading advertisement for an unfair trade practice that involves false guarantee
or warranties, the new law said the burden of proof will lie upon the person raising
a defence that the guarantees were based on adequate and proper test. Some
examples of misleading advertisements are, a false claim regarding the
characteristics of a product such as the colour, size, quantity, material used etc,
this issue can be frequently noticed in clothes, pictures of clothes shown in the
website is drastically different from the actual delivered good, The price or way
the price is calculated is misrepresented, e.g. – products are advertised at sale
prices, but turn out not to be. In certain cases, important information regarding
the product is withheld, this often leads the client to make wrong choices, the
advertisement creates a false impression about a product or service, even if the
information given is correct. The various forms of advertisements are, press
advertisements in newspapers or magazines, television, radio commercials,
posters telling the public about an event or concert, digital advertisements on
websites or mobile phones, websites, shop signs (giving information unique to a
particular shop, sales/direct mail letters, faxes of promotional material and
catalogues etc.
Initially law governing sale of goods and the penal code contained provision for
regulation of fraudulent misrepresentation made by sellers about the quality,
quantity and purity of goods and services and also under torts, principle of law
of negligence is used to protect customers from negligent and fraudulent service
by manufactures, In the post Indian independence several special statutes were
enacted by the Parliament to ensure better protection to consumers. These
statutes have provisions to regulate and control false and misleading
advertisement with the view to protect consumers from the deceptive impacts of
false and misleading advertisement and ensure better consumer information.
Some of the advertisements which were found out to be false and misleading
and pulled out by the ASCI are;
1. Danone for its Protenix Ad – This ad was pulled out on the basis that it
was misleading by ambiguity, implication and omission. The ad
compared its product with products from various other top companies,
they stated their product contained such and such level of protein and
implying that the other companies’ products had lesser quantity of protein
but in reality, the other company’s products did have higher protein
content according to a research company.
2. Oral- B neem tooth brush – In this ad, oral b stated they had invented a
new brush which contains neem extract, the neem extract is supposedly
found in the bristles, research found out no such neem extract was present
in the brush. The ad was banned from being telecasted due its false and
misleading content.
3. Dove Hair fall Shampoo – The shampoo ad claimed customers using its
product would experience nearly zero hair fall, this was proved to be
inaccurate, ad was found out to be misleading, hence it was removed.
4. Fair and Lovely anti-marks treatment advertisement, which claimed 100

per cent marks reduction. The ASCI said one of the pre-requisites of the
study is the subjects are required to avoid exposure to the sun in excess of
30 minutes. In absence of such disclaimer, the advertisement was
considered to be misleading by omission, the ASCI said, adding that the
disclaimers are not clearly legible and not in compliance with
the ASCI guidelines for disclaimers.
The new Consumer Protection Bill, 2019 contains strict provision for celebrities
and product endorsers who endorse products which are false and misleading.
The Central Consumer Protection Authority has the power to impose fines up to
rupees 10 lakhs, they also have the power to impose a jail term of two years for
false imprisonment for a misleading advertisement. If the endorser is a repeat
offender, he can be levied a fine of rupees 50 lakhs and imprisonment for a term
of 5 years. Endorsers can be barred from promoting advertisements for up to a
year, extending up to three years for repeat offenders. Only in cases where the
endorser can prove that they have done due diligence to verify claims made in
the ads, will they be exempted from punishment.
To deal with misleading advertisements including those by manufacturers and

celebrities, the government would put in place a mechanism to ensure strict
punishment is given to those involved in such activities, Besides, an inter-
ministerial monitoring committee , monitors the redressal of complaints
received on the portal GAMA (Grievances Against Misleading
Advertisements).
"From March 2015 till date, a total of 3,220 complaints have been registered on
the portal. Of the complaints received, 1,683 complaints have been resolved and
715 complaints rejected," the Minister said.
Further, Paswan said the Ministry of Information and Broadcasting has set up
an inter-ministeria ..
The definition of “unfair trade practices” has been enlarged to include electronic
advertising which is misleading, as well as refusing to take back or withdraw defective
goods, or to withdraw or discontinue deficient services, and to refund the consideration
within the period stipulated or in the absence of such stipulation, within a period of
thirty days. It is now also an offence if any personal information, given in confidence
and gathered in the course of a transaction, gets disclosed.
All these changes signify an attempt to create more transparency in the marketplace,
through legislative protection, with a view to ensure that consumer interests are above
all else.

False and Misleading Advertisements

Uploaded by

Copyright:

Available Formats

False and Misleading Advertisements

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

False and Misleading Advertisements

Uploaded by

Copyright:

Available Formats

False and misleading advertisements (Unfair trade practices)

under Consumer Protection Act, 2019

4. Fair and Lovely anti-marks treatment advertisement, which claimed 100

To deal with misleading advertisements including those by manufacturers and

You might also like