Advertisements have become a very important medium in today's times. Advertisements help people know about good and bad product options. Along with making people aware, they are also helpful in increasing the growth of companies. The problem arises when this medium is used to mislead people. But provisions have been made to protect against this also. A new aspect of “Misleading Advertisements” was added to the Consumer Protection Act implemented in the year 2019. Out of approximately ten thousand complaints investigated by the Advertising Standards Council of India (ASCI) in the year 2023-24, 81 percent of the complaints were related to misleading advertisements. This shows that people in India are facing a big problem regarding misleading claims, which is against the basic idea of ​​consumer protection. Let us see today what are the rights of consumers against such misleading advertisements. How does the Consumer Protection Act, 2019 deal with them?
What is misleading advertising? Section 2(28) of the Consumer Protection Act, 2019 defines misleading advertising. If an advertisement misrepresents a product or service, makes a false guarantee, makes any claim that amounts to an unfair trade practice, or intentionally suppresses material information, it is classified as misleading advertising. The government has also framed Guidelines for Prevention of Misleading Advertisements, 2022 under the Act. These explain in detail what types of advertisements are allowed and under what conditions. For example, advertisements featuring surrogate mothers cannot be served. There are restrictions on them.
What rights do consumers have? As per Section 2(9)(ii) of the Consumer Protection Act, 2019, consumers have the right to be protected from unfair trade practices and the right to seek redressal is provided under Section 2(9)(v). In case of individual complaint, any consumer can approach the Consumer Commission against misleading advertising. Apart from this, the consumer can also write to the District Collector, Central Consumer Protection Agency (CCPA) against any specific misleading advertisement. Complaints can also be made to the Advertising Standards Council of India (ASCI).
What is the provision of fine? If after investigation the advertisement is found to be misleading, the CCPA can order the publisher/broadcaster in which it is published or broadcast to stop the advertisement. It also has the right to impose a fine of up to Rs 10 lakh on the concerned businessman or manufacturer or advertiser. If misleading advertisements are continued even after this, the fine can increase up to Rs 50 lakh for each mistake. According to Section 89 of the Consumer Protection Act, 2019, violators can also face a prison sentence of up to two years in the case of the first violation, which may extend to five years for each subsequent violation.
What is the provision on false guarantee? In the case Vijay Aggarwal v. A Company Claiming to Aid Weight Loss, the customer purchased a weight loss program. There was also a promise of 'money back guarantee'. The advertisement said, “Lose 4 kg in 30 days or get your money back.” The customer could not bear the weight and asked for his money back. However, the matter ultimately reached the State Commission because the said company was “false through misleading guarantees”. While giving assurance, on the other hand, it was also making the consumers sign a declaration that there would be no guarantee of the results. Accordingly, the Commission ordered the concerned company to return the program fee of Rs 75 thousand, pay compensation of Rs 20 thousand and pay Rs 10 thousand to the consumer as litigation expenses.
(The author is also Secretary, CASC.)
Graphics Source: NavJivanIndia | VaskarAssets
