REGULATING MISLEADING ADVERTISEMENT - POLITY

News: Advertisers to submit self-declarations before promoting products in media, SC orders

 

What's in the news?

       To protect consumers from deceptive advertising, the Supreme Court of India has mandated that advertisers must provide self-declarations prior to promoting products through the media.

 

Regulation of Advertisements in India:

Central Consumer Protection Authority (CCPA):

       The CCPA, operating under the Department of Consumer Affairs, regulates matters concerning consumer rights violations and unfair trade practices.

       It is established under section 10 of the Consumer Protection Act, 2019.

 

Aim:

       To prevent false or misleading advertisements and safeguard consumer rights.

 

Enforcement Guidelines:

       The CCPA enforces the ‘Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022’, empowered by the Consumer Protection Act, 2019.

       These guidelines aim to protect consumer rights by ensuring advertisements refrain from unsubstantiated claims, exaggerated promises, and misinformation.

 

Provisions:

       The guidelines define various forms of misleading advertisements and lay down provisions to protect consumers' rights to information, choice, and safety.

       They outline duties of manufacturers, service providers, advertisers, and advertising agencies to ensure transparency and clarity in advertisements, enabling informed consumer decisions.

 

Penalties for Violations:

       The CCPA can impose penalties of up to 10 lakh rupees for manufacturers, advertisers, and endorsers for misleading advertisements.

       Subsequent violations may attract penalties of up to 50 lakh rupees.

       Endorsers of misleading advertisements can face prohibition from making endorsements for up to 1 year, extendable to 3 years for subsequent violations.

 

Regulation by Food Safety and Standards Authority of India (FSSAI):

       Deceptive advertising falls under Section-53 of the Food Safety and Standards Act, 2006, making it punishable.

       FSSAI mandates truthful, unambiguous, and scientifically substantiated advertisements through the Food Safety and Standards (Advertisements & Claims) Regulations, 2018.

 

Legislations Governing Advertising:

       Advertisement Standard Council of India (ASCI): A non-statutory tribunal enforcing advertising ethics through the ASCI code, applicable to advertisements seen in India.

 

       Consumer Protection Act, 1986: Grants consumers rights to information and redressal against misleading advertisements.

 

       Cable Television Network Act and Amendment Act: Regulates television advertisements to ensure compliance with prescribed codes.

 

       Restrictions on Tobacco Advertisement: Prohibits tobacco advertisements in all forms of media under the Cigarettes and Other Tobacco Products Act, 2003.

 

       Drug and Magic Remedies Act, 1954 & Drugs and Cosmetics Act, 1940: Regulates drug advertisements to prevent misuse and false claims.

 

       Regulation of Prenatal Diagnostic Techniques Act, 1994: Prohibits advertisements related to prenatal sex determination.

 

       Criminality of Advertisements under Indian Penal Code (IPC): Prohibits obscene, defamatory, or inciteful advertisements, with offenses punishable under IPC provisions.