What Are The Legal Remedies For Consumers In Deceptive Advertising Cases?

Advertising plays a crucial role in influencing consumer decisions. Advertisements become deceptive and violate consumer rights when they mislead the consumer by making false claims, concealing terms, or exaggerating benefits. In India, misleading advertisements pose a serious challenge, often causing potential losses in terms of money, health hazards, and unfair trade practice. India, therefore, has enacted laws and created regulatory mechanisms for advertisement control in order to provide protection to its consumers. 

In India, there exist many statutes for Consumer protection from false advertising in India intended to regulate misleading advertisements and provide remedies to affected consumers. In this article, we shall highlight salient provisions under the Consumer Protection Act, 2019, the Indian Penal Code, 1860, Bhartiya Nyaya Sanhita, 2023, the Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954, and other relevant laws.

What Constitutes a Misleading Advertisement?

A misleading advertisement shall be held to mean an advertisement that: 

• Contains false or misleading information about the products or services. 
• Intentionally concealing relevant information that is likely to affect the buyer’s decision.
• Bait and switch advertising India, where the advertisement is for something cheaper than the one available, forcing the buyer instead into an expensive alternative.
• Celebrity or influencer endorsements are given without proper checks on their validity (these include fake endorsements and unauthorized endorsements).

Indian Laws Against False Advertising 

There are a number of laws in India that prevent false advertisements and give remedies to affected consumers.

Consumer Protection Act 2019 (CPA, 2019)

This Act provides for the establishment of a Central Consumer Protection Authority to investigate misleading advertisements and take action against them. Such misleading advertisements entitle any consumer victimized by them to file cases at District, State, and National Consumer Disputes Redressal Commissions. Consumers have the right to compensation for losses, pain and suffering, and in some cases, punitive damages.

Remedies under the CPA, 2019

Filing a Complaint in Consumer Commissions:

• Consumers can file complaints before District, State, or National Consumer Disputes Redressal Commissions (NCDRC) for damages caused by misleading advertisements.
• Consumers may be awarded compensation for financial loss, mental agony, and punitive damages.

Action by the Central Consumer Protection Authority (CCPA):

• The CCPA can issue cease-and-desist orders to stop misleading advertisements.
• It can impose fines up to Rs. 10 lakh (1 million INR) on advertisers or endorsers for first-time violations and up to Rs. 50 lakh (5 million INR) for subsequent offenses.
• Endorsers found guilty may be prohibited from promoting products for up to three years.

Corrective Advertising:

The CCPA may direct businesses to issue corrective advertisements to clarify misleading claims.

Indian Penal Code, 1860 (IPC)/ Bhartiya Nyaya Sanhita, 2023 (BNS):

Deceptive advertising may also amount to criminal offenses under the IPC and BNS.

• Section 415 IPC/Section 318(1) BNS (Cheating): Advertising that has misled consumers by virtue of false claims may lead to commit offences under cheating laws, that is, where the perpetrator (in this case, the advertiser) knowingly and deceitfully convinced other individuals to purchase things.
• Section 420 IPC / Section 318(4) BNS (Fraud and Cheating): Serious cases of fraudulent advertisement can lead to imprisonment or fine with a maximum term of seven years.

Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954:

This Act is in specific terms related to misleading advertisements on healthcare and medicines and magical remedies.

• Prohibits false claims on curing diseases like diabetes, asthma, and sexual disorders. 
• Any offender may be punished with six months of imprisonment for the first conviction. After that, punishment can go up to one year.

Food Safety and Standards Act, 2006 (FSSA):

The Food Safety and Standards Authority of India (FSSAI) takes care of compliance of misleading claims connected with food products.  

• Misleading food advertisements in India, like ‘Boosts Immunity Instantly,’ might draw a penalty of up to Rs. 10 lakh (1 million INR). 
• FSSAI has got the power of directing the withdrawal/withdrawal of misleading advertisements.

Cable Television Networks (Regulation) Act, 1995:

Advertising contents in the television are controlled by this Act, and ban on misleading TV ads India are conducted which:

• Mislead consumers.
• Offend morality or public decency.
• Promote illegal products or services.

The Ministry of Information and Broadcasting can ban these kinds of misleading advertisements on the television channels.

Legal Metrology Act, 2009:

• This Act relates to proper labelling and bans deceptive packing and measurement practices.
• If an advertisement gives a false sense of a product regarding its quantity, weight, or price, such advertisements may attract fines of up to Rs. 1 lakhs (100,000 INR). 

Famous Misleading Advertisement Cases in India

Patanjali’s COVID-19 Cure Claim (2020):

• Patanjali launched ‘Coronil’ as a cure for COVID-19 without prior scientific validation.
• The Ministry of AYUSH banned the misleading claim, and the CCPA issued legal notices.

HUL and Emami Fairness Cream Advertisement Dispute:

• Hindustan Unilever and Emami accused each other of misleading advertisements regarding fairness creams.
• Both companies were directed to withdraw deceptive claims.

Nestlé Maggi Noodles Ban (2015):

• Maggi noodles were falsely advertised as very healthy while they contained high lead content. 
• The FSSAI banned the product, and Nestlé was fined Rs. 640 crores (6.4 billion INR) in damages.

Steps Consumers Can Take Against Misleading Advertisements

Advertisements If you think you are a victim of such deceptive advertising in India, then one can take the following steps:

• Collect Evidence: Maintain advertisement copies, bills, product packaging, etc., as proof against the advertiser.
• Contact the Company: Make a formal complaint to the mail or sell the advertiser.  

File a Complaint with Regulatory Authorities

• Central Consumer Protection Authority (CCPA): Lodge your complaint using consumerhelpline.gov.in.    
• Advertising Standards Council of India (ASCI): Report misleading advertisements to the Advertising Standards Council of India (ASCI) at ascionline.org.
• FSSAI: Complaints can be made for food-related advertisements at  fssai.gov.in.

Approach Consumer Courts: 

• File a complaint in District, State, or National Consumer Disputes Redressal Commissions.
• Legal representation is not mandatory, and online filing options are available.

Raise Public Awareness: 

Share your experience on social media platforms and consumer forums to warn others.

Conclusion

Misleading advertisements exploit consumer trust and pose significant financial and health risks. Indian laws offer remedy options that range from administrative action and civil compensation to criminal liability. The role of the regulatory bodies, CCPA, FSSAI, ASCI, and consumer courts, must be instrumental in upholding advertisement integrity.

Consumers also have to be vigilant in reporting misleading advertisements and availing legal remedies against the companies. Stronger enforcement and awareness campaigns should be initiated to combat the menace of misleading advertising in India.

One can talk to a lawyer from Lead India for any kind of legal support. In India, free legal advice online can be obtained at Lead India. Along with receiving free legal advice online, one can also ask questions to the experts online free through Lead India.

FAQs

1. What legal actions can I take if I am misled by a false advertisement?

Complaints under the aegis of misleading advertisement could be filed with CCPA or ASCII or one of the relevant regulatory authorities, for instance, the Food Safety and Standards Authority of India (FSSAI) in the case of food-related claims. Otherwise, complaints could also be lodged before the Consumer Commissions at the District, State, or National level for compensation, or any other legal remedy.

2. Can a celebrity endorser be held liable for misleading advertisements?

This is indeed a legislative option available. The penalties include fines ranging up to ₹10 lakhs against first-time offenders and ₹50 lakhs against repeat offenders, apart from a complete ban from endorsement for up to 3 years following a conviction. 

3. What penalties do companies face for misleading advertisements?  

The companies will be fined up to ₹50 lakhs and prohibited from running misleading ads, while corrective ads will be ordered. In cases of extreme behaviour, criminal provisions under the IPC/BNS and the Drugs and Magic Remedies Act might be invoked against them.