Written by By – Beradar Akash, Student of Christ Academy Institute of Law, Bengaluru

ABSTRACT

The common occurrence of misleading advertising interferes with market dynamics and destroys consumer confidence in the marketplace. The Consumer Protection Act, 2019 of India functions as a strong legal system to eliminate deceptive practices which simultaneously protects consumer rights while supporting fair market competition. This blog delves into the nuances of misleading advertising, its legal implications under Indian law, and its profound impact on consumers. It investigates how courts and regulatory authorities handle these problems by monitoring and enforcing regulations while raising consumer understanding to stop false advertising through relevant judicial decisions and present-day cases.

Keywords: Misleading Advertising, Unfair Trade Practices, Consumer Protection Act 2019, Consumer Rights and Legal Remedies.

INTRODUCTION

Have you ever bought a product that didn’t live up to the huge claims made in the advertisement? We all have shared this experience with misleading advertisements which both deceive consumers and harm fair market competition. Indian legislation now controls unfair trade practices through the enactment of the Consumer Protection Act 2019. The law adopts measures to shield customers from false advertising tactics and maintain business operations within ethical guidelines.[1]

UNDERSTANDING MISLEADING ADVERTISING

Businesses use deceptive sales tactics to spread false information and enlarge product or service descriptions to gain consumer interest. Different types of deceptive advertisements exist which include false sales pitches that mislead consumers concerning their purchase standards or content amounts and important information that businesses should reveal.[2] The Consumer Protection Act 2019 provides an exact definition of “misleading advertisement” [3]to prohibit any advertisement containing inaccurate product descriptions with misleading false guarantees or substantial information hiding elements.[4]

LEGAL FRAMEWORK GOVERNING MISLEADING ADVERTISING IN INDIA

Various laws and regulations exist in India which aim to solve the problems caused by misleading advertising.

• Consumer Protection Act, 2019[5]:  This act declares and bans all unfair trade practices as well as misleading advertisements. The Central Consumer Protection Authority (CCPA) receives power from this legislation to address false advertising through corrective actions.
• Food Safety and Standards Act, 2006[6]: The advertising of food products falls under this legislation which forbids businesses from making deceptive statements about their products.
• Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954[7]: It prevents pharmaceuticals from using false health statements while forbidding the promotion of drugs with magical components.
• The Advertising Standards Council of India (ASCI) maintains its position as a separate self-regulatory entity dedicated to advertising standards that influence ethical advertising practices.

IMPACT ON CONSUMERS

The consequences resulting from the deceptive advertising market to consumers appear particularly severe.

• Financial Loss: People lose their money by buying items advertised through deceptive information.
• Health Risks: People who use deceptive health-related advertisements end up using products that turn out to be ineffective as well as potentially dangerous.
• Erosion of Trust: When consumers often face misleading ads it will reduce their trust both in market operations and advertising platforms.[8]

RECENT CASE STUDIES

1. Patanjali Ayurved’s Misleading Claims 2022:

The Indian Medical Association presented a petition to courts in 2022 against Patanjali Ayurved because the company spread false advertisements that criticized allopathic medical treatments. A Supreme Court intervention established a marketing ban for Patanjali operations that will stay in place without specified timing. The judiciary takes a leading role in combating misleading advertising activities in this particular case.[9]

• FSSAI Crackdown on Food Business Operators 2023:

The Food Safety and Standards Authority of India (FSSAI) discovered 32 instances where various food business operators broke advertising regulations through false product advertisements. Food Safety and Standards Authority of India instructed these operators to stop their deceptive claims unless they supported them with scientific facts to secure consumer protection from deceptive food marketing.[10]

• Legal Actions Against Ola Electric 2024:

The Central Consumer Protection Authority in India issued a warning to Ola Electric in October 2024 because users submitted more than 10,000 complaints about services deceptive promotions and unfair business practices. The authority required clarification and warned about future penalties that demonstrated the legal responsibility of businesses for misrepresentative advertising combined with substandard service levels.[11]

• Kerala Court’s Warrant Against Baba Ramdev 2025:

A Kerala court issued warrants that Baba Ramdev and Acharya Balakrishna could bail out in a misleading advertisement case. The order from the magistrate directly attacked Divya Pharmacy and Baba Ramdev while enforcing the Drug and Magic Remedies Act of 1954 to maintain justice in fraudulent medical statements. [12]

• Supreme Court’s Directives on Celebrity Endorsements

The Supreme Court took action to deal with deceptive advertising practices done by celebrities and influential persons in their advertisements. The Court in Patanjali Ayurved established a citizenship standard for endorsers to verify advertisement claims which became a benchmark for celebrity endorsement responsibility.[13]

NOTABLE CASE LAWS

Judicial authorities within India have worked to resolve problems with false marketing practices. In the landmark case of Godrej Projects Development Limited v. Anil Karlekar & Ors[14]. The Supreme Court established that one-sided agreements fall under ‘unfair trade practice’ defined in law. Consumer interests face significant harm when such practices occur therefore the offending party needs to stop their unfair actions.[15]

The Supreme Court investigated the business practices of the PVR-Inox cinema chain through a relevant case. The company received a 1,20,000-rupee penalty because judges from the court found the prolonged advertising during showtimes amounted to an unfair trade practice. This ruling strengthened the understanding that customers deserve respect for their time since businesses should not utilize their time for profit-driven purposes.[16]

CONTEMPORARY DEVELOPMENTS

The regulatory framework controlling advertisements has experienced increased efforts for enhancement during successive years. Before media product promotion advertisements advertisers must provide self-declarations to the Supreme Court for better accountability and transparency purposes. The AYUSH Ministry issued a formal withdrawal of the “omitted” rule regarding advertising controls of drugs for government endorsement thus demonstrating their dedication to protecting public health from deceptive claims.[17]

REGULATORY MEASURES AND ENFORCEMENT

A series of prevention methods exist to combat deceptive advertisements in the market.

1. Mandatory Self-Declarations: Advertisers must present self-declarations to the Supreme Court before showing advertisements that meet advertising requirements.
2. Penalties for Non-Compliance: The CCPA along with other regulatory bodies have the power to fine and penalize entities that spread deceptive advertisements.
3. Guidelines for Celebrity Endorsements: Endorsers who campaign for brands are mandated to thoroughly check advertisement claims for safety responsibilities in advertising practices.

CHALLENGES AND THE WAY FORWARD

Jurisdictional laws currently exist yet various issues still block the fight against deceptive marketing initiatives. The key obstacle for regulatory compliance consists of effective enforcement processes because proper monitoring alongside fast response to offenders remains essential. The lack of proper surveillance along with delayed legal action lets many deceptive advertisements circulate without consequences. There exists a major challenge stemming from the general ignorance of consumers about these matters. People need to learn what rights they have as consumers while also learning about the various complaint channels that serve to stop false advertisements from circulating in the market. Knowledgeable buyers act as a preventive force against businesses that choose dishonest marketing methods. Digital advertising growth has made the matter of misleading advertising worse. Digital advertising platforms now spread deceptive advertisements more easily because they evade monitoring from regulators. The effectiveness of traditional advertising regulations is inadequate when dealing with modern deceptive advertising so new legal structures combined with modern monitoring capabilities are required. The progress toward addressing misleading advertising depends on improved oversight of deceptive practices alongside better consumer education about false information along with digital media regulation adjustments.

CONCLUSION

The practice of misleading advertising continues to present major issues for consumer safety because it damages confidence in the market and destroys economic security while creating unfair business conditions. The blog analysis demonstrates that deceptive marketing methods like product exaggerations and deceptive guarantees have activated legal action under the Consumer Protection Act of 2019. Patanjali Ayurved made deceptive claims and FSSAI launched an enforcement action against false food promotions thereby showing the need for increased regulatory action.

An effective solution to this problem requires enhanced enforcement penalties together with customer education initiatives and continuous monitoring through organizations such as the Central Consumer Protection Authority (CCPA) and the Advertising Standards Council of India (ASCI). Both business entities and marketing practices need to prove their ethical behavior to regain consumer trust. Preventing deceptive advertising in the market requires more than legal enforcement because it represents a moral obligation that society must respect. The shared responsibility of empowered consumers, vigilant regulators, and corporate accountability in ethical conduct establishes a transparent and fair marketplace.

References

[1] Mohammad Anas, ‘The Impact of Misleading Advertisements on Consumer’s Right to Free Choice: A Comprehensive Study’ (Indian Journal of Law and Legal Research, 17 November 2024) <https://www.ijllr.com/post/the-impact-of-misleading-advertisements-on-consumer-s-right-to-free-choice-a-comprehensive-study> accessed 21 February 2025.

[2] LLC Lawyers, ‘Unfair Trade Practice under the Consumer Protection Act in India’ (Legal Light Consulting, 22 November 2024) <https://legallightconsulting.com/unfair-trade-practice-under-the-consumer-protection-act-in-india/> accessed 21 February 2025.

[3] Pragati Khandekar, ‘Misleading Advertisements and the Law in India’ (The Advocates League, 13 January 2024) <https://theadvocatesleague.in/blogs/view/MISLEADING-ADVERTISEMENTS-AND-THE-LAW-IN-INDIA-hSUE3a.html> accessed 21 February 2025.

[4] Vikrant Rana and Apalka Bareja, ‘Misleading Ads: Everything You Need to Know’ (Live Law, 14 August 2024) <https://www.livelaw.in/law-firms/law-firm-articles-/misleading-ads-advertising-regulation-act-ministry-of-information-and-broadcasting-consumer-protection-act-tata-motors-ss-rana-co-266693> accessed 21 February 2025.

[5] Consumer Protection Act 2019 (India).

[6] Food Safety and Standards Act 2006 (India).

[7] Drugs and Magic Remedies (Objectionable Advertisements) Act 1954 (India).

[8] Satikshan Gupta and Yash Gupta, ‘Misleading Advertisements and the Laws in India’ (JusScholars, 23 November 2024) <https://juscholars.com/misleading-advertisements-and-the-laws-in-india/> accessed 21 February 2025.

[9]‘Patanjali Case on Misleading Advertisement’ (Drishti Judiciary, 1 March 2024) <https://www.drishtijudiciary.com/editorial/patanjali-case-on-misleading-advertisement> accessed 21 February 2025.

[10] ‘FSSAI Flags 32 New Cases of Misleading Ads by Food Business Operators’ (The Indian Express, 28 April 2023)<https://indianexpress.com/article/business/fssai-32-new-cases-misleading-ads-food-biz-operators-8581809/> accessed 21 February 2025.

[11] Aditya Kalra, ‘India Warns Ola Electric on Customer Service After 10,000 Complaints’ (Reuters, 8 October 2024)<https://www.reuters.com/business/autos-transportation/india-warns-ola-electric-customer-service-after-10000-complaints-2024-10-08/> accessed 21 February 2025.

[12] ‘Misleading Ads Case: Kerala Court Issues Bailable Warrant to Baba Ramdev, Acharya Balakrishna’ (The Economic Times, 20 January 2025)<https://economictimes.indiatimes.com/news/india/misleading-ads-case-kerala-court-issues-bailable-warrant-to-baba-ramdev-acharya-balakrishna/articleshow/117388054.cms>accessed 21 February 2025.

[13] Savan Dhameliya, ‘Celebrities & Influencers Are Liable for Misleading Advertisements: Supreme Court’ (IPRMENTLAW, 12 May 2024) <https://iprmentlaw.com/2024/05/12/celebrities-influencers-are-liable-for-misleading-advertisements-supreme-court/> accessed 21 February 2025.

[14] Godrej Projects Development Limited v Anil Karlekar & Ors (2025) INSC 143.

[15] Poonam Gandhi, ‘One-Sided Agreements Are Covered by “Unfair Trade Practice” Definition: SC’ (TaxGuru, 12 February 2025)<https://taxguru.in/corporate-law/one-sided-agreements-covered-unfair-trade-practice-definition-supreme-court.html> accessed 21 February 2025.

[16] Ruchita, ‘Time Is Money: Stop Unfair Trade Practices, Court Fines PVR Inox Rs 1.2 Lakh for Stretching Showtimes’ (IBTimes India, 19 February 2025) <https://www.ibtimes.co.in/time-money-stop-unfair-trade-practices-court-fines-pvr-inox-rs-1-2-lakh-stretching-showtimes-879694> accessed 21 February 2025.

[17]‘Regulating Misleading Advertisements in India’ (Drishti IAS, 15 May 2024) <https://www.drishtiias.com/daily-updates/daily-news-analysis/regulating-misleading-advertisements-in-india> accessed 21 February 2025.