Editorial

Source: The Hindu

Introduction

Recently, the Supreme Court has issued directions to shield consumers from misleading advertising. This directive arose from a case involving misleading advertisements propagated by Patanjali Ayurved. As a tide-over solution the court mandated that advertisers adhere to the Cable TV Network Regulations Rules of 1994 by submitting their self-declarations.

What are the Guidelines Issued by the Supreme Court?

• Firstly, the Court acknowledged the significant impact of endorsements by public figures, influencers, and celebrities in product promotion. Recognizing this influence, the Court emphasized the critical need for these individuals to exercise prudence and accountability when endorsing products in advertising endeavors.
• As an interim solution to misleading advertisement, advertisers must provide a self-declaration in accordance with the Cable Television Network Rules of 1994 before advertisement is permitted.
• The Court has instructed the Ministry to establish a separate online platform for uploading self-declarations specifically for press and print media within four weeks. Once the portal is operational, advertisers must submit their self-declarations before publishing any advertisements in the print media.

What are Misleading Advertisements?

• Misleading advertising refers to promotional messages or campaigns that contain false or deceptive information, leading consumers to make decisions based on inaccurate or incomplete information.
• This can include false claims about a product's features, benefits, or effectiveness, as well as misleading pricing, warranties, or endorsements.
• In many countries, including India, there are laws and regulations in place to prevent and penalize misleading advertising, aiming to protect consumers and promote fair competition in the marketplace.

What are the Laws Related to Misleading Advertisement in India?

• In India, several laws and regulations are aimed at addressing misleading advertisements. Some of the key laws and regulations related to misleading advertisements include:
  • Consumer Protection Act, 2019: This act aims to protect the interests of consumers and prevent unfair trade practices, including misleading advertisements. It establishes mechanisms for consumers to seek redressal for grievances related to misleading advertisements.
  • The Cable Television Networks (Regulation) Act, 1995 (CTN Act): This act regulates the operation of cable television networks in India. It prohibits the transmission of advertisements that are indecent, offensive, or harmful to viewers' interests.
  • The Advertising Standards Council of India (ASCI): While not a law, ASCI is a self-regulatory organization that monitors and regulates advertising content in India. It promotes responsible advertising practices and addresses complaints related to misleading advertisements through its code of self-regulation.
  • The Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954: This act prohibits advertisements that claim to cure certain diseases or ailments using drugs or remedies deemed "magical" or "miraculous". It aims to prevent the promotion of unproven or fraudulent medical treatments.

What are the Punishments Prescribed for Misleading Advertisement?

• Drugs & Other Magical Remedies Act, 1954 (DOMA):
  • Under Section 4 of the DOMA, publishing misleading advertisements regarding drugs is prohibited, punishable by imprisonment or fines.
  • It states that no person shall take any part in the publication of any advertisement relating to a drug if the advertisement contains any matters which—
    • Directly or indirectly gives a false impression regarding the true character of the drug; or
    • Makes a false claim for the drug; or
    • Is otherwise false or misleading in any material particular
  • Section 7 of DOMA further states that Whoever contravenes any of the provisions of this Act or the rules made thereunder shall, on conviction, be punishable
    • In the case of the first conviction, with imprisonment which may extend to six months, or with fine, or with both;
    • In the case of a subsequent conviction, with imprisonment which may extend to one year, or with fine, or with both.
• Consumer Protection Act (CPA):
  • Section 89 of the CPA imposes stringent penalties for false or misleading advertisements.
  • It states that any manufacturer or service provider who causes a false or misleading advertisement to be made which is prejudicial to the interest of consumers shall be punished with imprisonment for a term which may extend to two years and with fine which may extend to ten lakh rupees; and for everysubsequent offence, be punished with imprisonment for a term which may extend to five years and with fine which may extend to fifty lakh rupees.

What is Advertising Standards Council of India (ASCI)?

• It serves as a self-regulatory body in India specifically aimed at curbing misleading advertisements.
• It was established in 1985 to promote responsible advertising practices and ensure that advertisements adhere to ethical standards.
• Functions is to address complaints related to misleading or deceptive advertisements.
• Consumers, competitors, and other stakeholders can file complaints with ASCI if they believe an advertisement violates the code of self-regulation and then investigates these complaints and takes appropriate action.

What is the Landmark Case for Misleading Advertisement?

• In the case of Havells India Ltd. v. Amritanshu Khaitan & Ors., (2015), the Delhi High Court laid down two essential elements to ascertain whether an advertisement is misleading or not.
  • The Court emphasized that for an advertisement to be considered misleading, it must deceive its intended audience.
  • It should have the potential to influence consumer behavior or cause harm to competitors due to its deceptive nature.
  • These elements are crucial in determining the legality and ethicality of advertisements.

Conclusion

In conclusion, the recent Supreme Court directives regarding misleading advertising underscore the need for shared responsibility between advertisers and endorsers. Mandating self-declarations before releasing advertisements serves as an interim solution, promoting transparency and accountability in the advertising industry.