On Friday, the Central Consumer Protection Authority (CCPA) under the Department of Consumer Affairs notified the “Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022” with the objective of curbing misleading advertisements and protecting consumers who may be exploited or affected by such advertisements.
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.
CCPA and Consumer Protection Act, 2019
The CCPA has been established under Section 10 of the Consumer Protection Act, 2019 to regulate matters relating to violations of the rights of consumers, unfair trade practices, and false or misleading advertisements that are prejudicial to the interests of the public and consumers and to promote, protect, and enforce the rights of consumers as a class.
In exercise of the powers conferred by section 18 of the Consumer Protection Act, 2019, to CCPA, the Guidelines were notified
Misleading advertisement has already been defined under section 2(28) of the Consumer Protection Act, 2019.
The present guidelines define “bait advertisement”, and “surrogate advertisement” and clearly provide what constitutes “free claim advertisements”.
Keeping in view the sensitiveness and vulnerability of children and the severe impact advertisements have on their minds as they grow, several preemptive provisions have been laid down on advertisements targeting children.
Exaggerating the features of a Product
Guidelines forbid advertisements from exaggerating the features of a product or service in such a manner as to lead children to have unrealistic expectations of such product or service and claim any health or nutritional claims or benefits without being adequately and scientifically substantiated by a recognized body.
Guidelines say that advertisement targeting children shall not feature any personalities from the field of sports, music, or cinema for products that under any law requires a health warning for such advertisement or cannot be purchased by children.
Disclaimers in advertisements play a pivotal role from a consumer perspective since, in a way, they limit the responsibility of the company.
Therefore, the guidelines stipulate that disclaimer shall not attempt to hide material information with respect to any claim made in such advertisement, the omission or absence of which is likely to make the advertisement deceptive or conceal its commercial intent and shall not attempt to correct a misleading claim made in an advertisement.
Further, it provides that, a disclaimer shall be in the same language as the claim made in the advertisement and the font used in a disclaimer shall be the same as that used in the claim.
Similarly, clear guidelines are laid for the duties of the manufacturer, service provider, advertiser, and advertising agency; due diligence to be carried out before endorsing; and others.
Guidelines aim to protect consumers’ interests by bringing more transparency and clarity in the way advertisements are being published, so that, consumers are able to make informed decisions based on facts rather than false narratives and exaggerations.
Penalties for Violations
Penalties for violating the guidelines are also clearly outlined. The CCPA can impose a penalty of up to 10 lakh rupees on manufacturers, advertisers, and endorsers for any misleading advertisements.
For subsequent contraventions, CCPA may impose a penalty of up to 50 lakh rupees. The Authority can prohibit the endorser of a misleading advertisement from making any endorsement for up to 1 year and for subsequent contravention, prohibition can extend up to 3 years.
