Guidelines on Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022’

What is the News?

Central Consumer Protection authority(CCPA) under the Department of Consumer Affairs has notified ‘Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022’

What are Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022?

Issued by: Central Consumer Protection authority(CCPA) under the Department of Consumer Affairs.

Objective: To curb misleading advertisements and protect the consumers, who may be exploited or affected by such advertisements.

– To ensure that consumers are not being fooled with unsubstantiated claims, exaggerated promises, misinformation and false claims.

What are the key provisions of the guidelines?

Source: TOI

Advertisements targeting children shall not feature any personalities from the field of sports, music or cinema for products that under any law require a health warning or cannot be purchased by children.

Prohibits Surrogate Advertising: It bans surrogate advertising, a practice where a seller promotes a product whose advertisement is not allowed by disguising it as another product. Liquor ads commonly indulge in such practices — under the guise of selling soda, CDs, and even holiday packages.

Free claims advertisements: A free claims advertisement shall not describe any goods, products, or service to be ‘free’, ‘without charge’, or use such other terms if the consumer has to pay anything

Bait Advertisements: The guidelines lay down conditions to be complied with while issuing bait advertisements. Bait advertisement means an advertisement in which goods, products, or service is offered for sale at a low price to attract consumers. 

Bars Deceptive Advertisements: The guidelines bar the omission of material information that makes advertisements deceptive and helps conceal their commercial intent.

The guidelines bar Indian citizens living abroad from endorsing such advertisements that have been barred for Indian professionals living in the country.

What is the penalty for violating these guidelines?

CCPA can impose a penalty of up to Rs 10 lakh on manufacturers, advertisers, and endorsers for any misleading advertisements. For subsequent contraventions, CCPA may impose a penalty of up to Rs 50 lakh. 

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.

Source: The post is based on the article “Centre issues ‘Guidelines on Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022’” published in PIB on 10th June 2022.