We are bombarded with advertisements daily—"Fairness in 7 days," "100% placement guarantee," or "Zero-calorie snacks." Many of these are misleading and manipulate consumer behavior. To stop this, the Central Consumer Protection Authority (CCPA) issued a new set of guidelines in 2022. This 900-word guide explains how the law protects you from fake claims.
1. What is a Misleading Advertisement?
An ad is misleading if it:
- Falsely describes a product or service.
- Gives a false guarantee about the performance or life of a product.
- Conveys an express or implied representation which, if made by the manufacturer, would constitute an unfair trade practice.
- Deliberately conceals important information.
2. The Role of the CCPA
The CCPA has the power to:
- Order the withdrawal of a misleading ad.
- Impose a fine of up to Rs. 10 Lakhs on manufacturers and endorsers.
- For subsequent violations, the fine can go up to Rs. 50 Lakhs.
- Ban an endorser (celebrity) from making any endorsements for up to 1 year.
3. "Bait and Switch" and "Surrogate" Advertising
- Bait Advertising: Advertising a product at a very low price to attract customers when the seller has no intention of selling it at that price. This is now strictly illegal.
- Surrogate Advertising: Advertising a prohibited product (like alcohol) using a similar brand name of a permitted product (like soda). The CCPA has tightened the rules on this to ensure consumers aren't tricked.
4. Responsibilities of Celebrities (Endorsers)
Celebrities can no longer say "I didn't know the product was fake." The guidelines mandate that endorsers must perform due diligence before appearing in an ad. They must have used the product or service themselves or verified the claims. If they endorse a fake medicine or a fraudulent investment scheme, they are personally liable for the fines.
5. "Free" Offers and Disclaimers
If an ad says "Free," there should be no hidden costs except the cost of delivery or the actual cost of the product it is paired with. Also, disclaimers (the "conditions apply" text) should not be in tiny font that is impossible to read. They must be clear and visible.
Conclusion
You have the "Right to be Informed." If you find an ad misleading, you can file a complaint on the Grievances Against Misleading Advertisements (GAMA) portal or with the CCPA directly. Your complaint can stop a corporation from lying to millions.