MISLEADING

ADVERTISEME
NTS AND
REGULATORY
BODIES
 WHAT IS ADVERTISEMENTS ?
• Advertising is a means of communication with the users of a product or service. Advertisements are messages paid
for by those who send them and are intended to inform or influence people who receive them, as defined by the
Advertising Association of the UK.
• A notice or announcement in a public medium promoting a product, service, or event or publicizing a job vacancy.
• Advertisements are an important cog in the machine of industry they play the role of creating and increasing the
consumer base for goods and services.
• The purpose of the advertisements is not only to provide the information but also influencing the consumers to
purchase that particular product.
• There is no doubt about the fact that advertisements impacts consumers and thus it is essential that the
advertisements should be truthful.
 WHAT IS MISLEADING
ADVERTISEMENTS ?
• Misleading happens when the customer faces kinds of advertising that represents false ideas about the product. terial
respect.
• No person shall, for the purpose of promoting, directly or indirectly, the supply or use of a product or for the purpose of
promoting, directly or indirectly, any business interest, by any means whatever, knowingly or recklessly make a
representation to the public that is false or misleading in a material .
• It also includes - Exaggerating and overstating ,expressing unrealistic attributes of the product , use of professional
concepts for more effect , fake license , false warranties , use of cinematic tricks and misleading images , Discounts and
gifts.
 EXAMPLES
• When an edible oil advertisement gives you the impression that you are free of heart problems so long as
you are using that particular oil, then it is misrepresenting facts.
• When an advertisement of a water purifier that filters only bacteria (and not viruses) claims that it gives
100 percent safe water, then it is a false statement.
• When a cell phone service provider promises STD calls for 40 paise per minute, but omits to say that this
rate is applicable only when calls are made to numbers serviced by the same provider, then it constitutes
misrepresentation.
• When a manufacturer claims that the refrigerator marketed by him is the best or that it keeps the food
inside germ-free, that claim should be backed by adequate data to substantiate the claim. Or else, it
becomes a false statement.
• • When an advertisement for a detergent says that it can remove grease in just one wash- it should be able
to do just that and the manufacturer should be able to prove this. Or else, it is an incorrect statement or a
false advertisement.
• • When an advertisement promises to give you a “free gift” every time you buy the advertised product, the
free gift should really be so. If the manufacturer is recovering either fully or even partly, the cost of the so-
called free gift, then the advertisement becomes false and misleading.
• • If a retailer claims that he is offering a special discount on his goods as part of a festival celebration, while
he is actually using the festival as an excuse to get rid of old and outdated goods, then he is deceiving
consumers.
• • When a toothpaste advertisement says that it prevents cavities, one expects the manufacturer to have
the data to prove this. If he fails to do that, then he is making an unsubstantiated claim or a false statement.
• • If an advertisement for a face cream claims that it removes dark spots on the face and even prevents
them from coming back, the manufacturer should be able to prove this. Or else, it is a deceptive
advertisement.
• • Even reducing crucial information about the product to minute letters at the bottom of the advertisement
could be termed as an unfair trade practice, particularly if such information is not intelligible to the
consumer.
AN OVERVIEW OF THE ADVERTISEMENTS
INDUSTRY IN INDIA : IMPACTS OF
MISLEADING ADVERTISEMENTS
• Advertisements is a responsibilities which shouldbe undertaken with principles. Misleafing
advertisememnts are not only unethical but they also violates the consumers rights to information,
choice and right to be safe guard against unsale goods and services and unfair trade practices.
• In the era of cut throat competition there is an enormous incentive to make misleading advertisements
to induce the consumer base to increases sale and profits.
• There has to be accountability pf the parties issuing misleading advertisements. Misleading
advertisemets are advertisements which deceive or are likely to deceive viewers with a claim about a
product or service which is materially false or misleading.
• Misleading advertising cause loss, damage or injury to the consumer.
STATUTORY FRAMEWORK REGULATING
MISLEADING ADVERTISEMENTS

• The purpose of the statutary framework is to ensure that advertisements do not twist the facts about
the products and misleads the consumer by way of subtle implications, exclusion and fake statemenets
with respects to the quality, quantity and features of the products or any services accompanying the
products.
• Monopolies and restrictive rade practices Act, 1969 : section 36 A of the MRTP Act defines unfair trade
practices. Section 36 B empowers the commission to inquires into any of the unfair trade practices. Even
though thus Act has been repeled now a similar definition of the UTP can be found in the consumer
protecton Act 1986
• 3. Food Safety and Standards Act, 2006
• This relatively new law has a provision to deal with false and misleading advertisements pertaining to food.
Here, the word advertisement includes advertisement and publicity through all media, including the
electronic media. Even promotional material on labels, wrappers and invoice areadvertisement. Section 24
of the Act (Restrictions of advertisement and prohibition as to unfair trade practices) says that:
• (1) No advertisement shall be made of any food which is misleading or deceiving or contravenes the
provisions of this Act, the rules and regulations made thereunder.
• (2) No person shall engage himself in any unfair trade practice for purpose of promoting the sale, supply,
use and consumption of articles of food or adopt any unfair or deceptive practice including the practice of
making any statement, whether orally or in writing or by visible representation which a. falsely represents
that the foods are of a particular standard, quality, quantity or grade-composition; b. makes a false or
misleading representation concerning the need for, or the usefulness; c. gives to the public any guarantee
of the efficacy that is not based on an adequate or scientific justification thereof: Provided that where a
defense is raised to the effect that such guarantee is based on adequate or scientific justification, the
burden of proof of such defence shall lie on the person raising such defense.
• Section 53 provides for penalty for misleading advertisements, extending to `10 lakhs. Problem with the
law: However, there is no provision here for corrective advertisement, which is very unfortunate. As I have
repeatedly said earlier too, it is only corrective advertisements that can wipe out the message conveyed by
false and misleading advertisements and for any law to effectively protect the interests of consumers, there
should be a provision for directing issuance of corrective advertisements and that provision should be
effectively enforced. brought under the definition
REGULATORY BODIES :

• ADVERTISING STANDARS COUNCIL OF INDIA ( ASCI ) : ASCI is a self regulatory non statutary trribunals
for the ensuring ethical advertising practices.
• The ASCI Code aim is to protect the legitimate of the consumers by regulating patently false, misleading
and objectionable advertisements broadcast on television, radio and internet by advertiers, media and
advertising agencies.
• Before the establisments of the ASCI the courts were responsinle to adjucate upon these matters.
• The warnings issued by ASCI to the advertisers against the misleading advertisemnts were gradually
being acceped by the advertiers and the advertisements were actually stopped being aired or were
modified significantly to comply with the prescribed ASCI code.
 PREVALENT FORM OF MISLEADING
ADVERTISEMENTS
• ü One example is the case of milk advertisements to children. A number of milk companies claim that their
products enhance performance during sports.
• ü Additionally, certain advertisements use celebrities to endorse their products. By doing this, the products will be
creating the impression that it is those food products that can cause one to live their dreams or live a celebrity-like
life. Children usually take things at face value and this misleads them into purchasing those items as they are.
• ü Another interesting feature about advertisements to children is that most of them are usually done for products
that are low in nutrients; these include breakfast cereals and other junk foods. Such foods are high in sugar and low
in other essential nutrients. However, many companies do not include that information in their advertisements;
instead, most of them assert that children should actually purchase the products so as to become healthy. This is
very misleading and can cause children to become overweight or even obese.
• ü In close relation to this example is the labelling of food as containing zero fat. This is also another gimmick that
could cause dire consequences to the consumer because it does not necessarily mean that the item has no fat at
all; it simply means that its fat content is lower than in other similar products. This means that when consumers
continually purchase and use such food items, then they may still be subjected to the same health problems that
their counterparts eating the non-low fat foods are.
• ü The advertisements regarding fairness creams, getting slimmer or taller by popping pills or the claims by
unscrupulous financial institutions regarding giving unrealistic higher returns on investments trick gullible
consumers in purchasing their goods or services.
 JUDICIAL PROUNCEMENTS ON MISLEADING
ADVERTISEMENTS
• Lakhanpal national Ltd. V MRTP COMMISSSION : Facts lakhanpal industries had collaborations with
Mitsubishi cororation of japan for manufacturing novino batteries. Mitsbishi was the owner of a well
known trade name Nationsal Panasonic. The disputes arose when in its advetisements lakhanapla
industries claimed that novino battries were made in collaborations with national Panasonic which was
incorrect since national Panasonic was only a trade name and therefore any collaboration with a trade
name is impossible .
• Held : the supreme court reasoned that when an issue that whether an act is an unfair trade practices
or not it has to be seen if there is any false or misleading statements contained and what is the effect of
such a atatements on the common man. The key is to examine that the representations contains a part
which is misleadings the buyers. Since a represnetations correct in the technical senses may still
misleads tha buyers due ti its complicated langugaes or representations incorrects in its technical snese
may still not misleads the buyers and conveys the truth more effectively. Therefore the court held that
even thiugh technically the statements made by lakahanapal industries was inaccurate but it cannot be
held to be unfaur trade practices.
• M. Balasundram V jyothi laboratories Ltd. : facts : the television
advertisements for ujala blue depicate that only two to three drops of this
brands was enough to brings about a striking whiteness in the clothes while
many spoons of the other brands were required for the ssme results. The
women in the advertisements was looking at the other unlabeled bottles in
disgust and made a negative exclamations. The competing brands of regaul
complained the commission that the above advertisements was disparaging
its products.
• Held: it was held thar just making aa claim that ones products is superior to
the other products Is not enough to attract any liability. In the advertisements
the other bottles was unlabeled and di not have any similarity with any other
brand. Therefore this cannot be said to be disparagements of the goods.
 STEPS TAKEN BY GOV. TO REMOVE

• o This Department has set up an Inter-Ministerial Monitoring Committee on Misleading Advertisements

vide OM dated 21.02.2014 having members drawn from different Ministries and authorities.
Advertisement standards Council of India is also represented in the said Committee.
• o This department is developing a web portal which would enable consumers to lodge complaints
against misleading advertisements.
• o Counter Campaign strategies are being worked out with FSSAI and other auyhrities like RBI NPPA,etc.
• o Industry body has been asked to bring out a document titled Corporate Consumer responsibility which
would contain code of business ethics on unfair trade practises including misleading advertisements.