Lok Sabha Question No. 3257 (UNSTARRED), answered on 2021-03-16
Subject: Misleading Advertisements
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Krishna Pal Singh Yadav

## Government of India

## Ministry of Consumer Affairs, Food and Public Distribution Department of Consumer Affairs

## LOK SABHA UNSTARRED QUESTION NO. 3257

TO BE ANSWERED ON 16.03.2021

## MISLEADING ADVERTISEMENTS

3257.  DR. KRISHNA PAL SINGH YADAV:

(OIH)

Will the Minister of CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k ea=h be pleased to state:

- (a) whether the Government plans to bring strict provisions in the extant Consumer Protection Laws  in  order to deal with misleading  advertisements and  to fix the liabilities on endorsers/celebrities;
- (b) if so, the details thereof;
- (c) whether the Government defines the term 'endorsement' in the Consumer Protection Laws and if so, the details thereof;
- (d) whether  the  Government  has  classified  the  definition  related  to  misleading,  false  and objectionable advertisements under the provision 2(41) (f) and if so, the details thereof;
- (e) whether the Government proposes to give advertisement code proposed by the Advertisement Standard Council some  legal  edge  so  that  the  misleading  advertisers  are  compelled  to  run reformative advertisements, if so, the details thereof; and
- (f) whether the Government proposes to include some punitive measures in the advertisement code in order to fulfil consumer interests and if so, the details thereof?

## ANSWER

## miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k jkT; ea=h ¼Jh nkuos jkolkgsc nknkjko½

## THE MINISTER OF STATE CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION (SHRI DANVE RAOSAHEB DADARAO)

(a) & (b) :  The Consumer Protection Act, 2019 provides for establishment of a Central Consumer Protection  Authority  (CCPA)  to  regulate  matters,  inter  alia,  relating  to  false  or  misleading advertisements which are prejudicial to the interests of public and consumers as a class. The CCPA can issue directions to the trader or manufacturer or endorser or advertiser or publisher, as the case may  be,  to  discontinue  such  advertisement  or  to  modify  the  same  and  may  also  prohibit  the endorser  of  a  false  or  misleading  advertisement  from  making  endorsement  of  any  product  or service. The Consumer Protection Act, 2019 provides for imposition of penalty by the CCPA on a manufacturer  or  endorser  in  respect  of  such  false  or  misleading  advertisement.  The  Act  also provides  for  imprisonment  and  penalty  by  a  competent  court  on  any  manufacturer  or  service provider, causing a false or misleading advertisement.

## ORIGINAL IN HINDI

(c) : Section 2(18) of the Consumer Protection Act, 2019 defines endorsement in relation to an advertisement, as (i) any message, verbal statement, demonstration; or (ii) depiction of the name, signature, likeness or other identifiable personal characteristics of an individual; or (iii) depiction of the name or seal of any institution or organisation, which makes the consumer to believe that it reflects the opinion, finding or experience of the person making such endorsement.

(d) :  Section 2(28) defines "misleading advertisement" in relation to any product or service as an advertisement, which (i) falsely describes such product or service; or (ii) gives a false guarantee to,  or  is  likely  to  mislead  the  consumers  as  to  the  nature,  substance,  quantity  or  quality  of  such product  or  service;  or  (iii)  conveys  an  express  or  implied  representation  which,  if  made  by  the manufacturer or seller or service provider thereof, would constitute an unfair trade practice; or (iv) deliberately  conceals  important  information.  As  per  section  2(47)  of  Consumer  Protection  Act, 2019, making a false or misleading representation concerning the need for, or the usefulness of, any goods or services is treated as unfair trade practice.

(e) & (f) : The Advertising Standards Council of India, a non-government body, had developed a code for self-regulation in advertising in the absence of any legal framework. With the notification of  the  Consumer  Protection  Act,  2019,  the  Central  Consumer  Protection  Authority  (CCPA)  has already been established to regulate matters, inter alia, relating to false or misleading advertisements.  The CCPA can impose penalty up to rupees ten lakh on manufacturer or endorser of  misleading  advertisement  or  any  person  found  to  publish  or  is  a  party  to  publication  of misleading advertisement and for every subsequent contravention by a manufacturer or endorser up to rupees fifty lakh.  It can also prohibit an endorser of a false or misleading advertisement from making endorsement of any product or service for a period which may extend to one year and for every subsequent contravention, for a period which may extend to three years.

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