Govt Tightens Oversight on Misleading Ads; CCPA Enforces 2022 Guidelines

The Government of India has reiterated that advertisements telecast on private satellite television channels must strictly comply with the Advertising Code under the Cable Television Networks (Regulation) Act, 1995, with authorities empowered to take action against misleading or deceptive promotional content.

The clarification was provided by Dr. L. Murugan, Minister of State for Information and Broadcasting and Parliamentary Affairs, in a written reply in the Lok Sabha to a question raised by Dr. M. K. Vishnu Prasad.

Advertising Code Prohibits "Miraculous Claims"

Under the existing regulatory framework, all advertisements broadcast on private satellite television channels are required to adhere to the Advertising Code prescribed under the Cable Television Networks (Regulation) Act, 1995 and the rules framed under it.

Rule 7(5) of the Advertising Code explicitly prohibits advertisements that suggest extraordinary or unproven claims about products.

The rule states that:

"No advertisement shall contain references which are likely to lead the public to infer that the product advertised or any of its ingredients has some special or miraculous or supernatural property or quality, which is difficult of being proved."

Officials said appropriate action is taken against private television channels whenever violations of the Advertising Code are identified. The Ministry of Information and Broadcasting also periodically issues advisories to broadcasters to ensure continued compliance with the rules.

CCPA Established to Protect Consumer Rights

To strengthen consumer protection in the advertising ecosystem, the Central Consumer Protection Authority (CCPA) was established under Section 10 of the Consumer Protection Act, 2019.

The authority has been tasked with regulating matters related to:

• Violation of consumer rights

• Unfair trade practices

• False or misleading advertisements

The CCPA is empowered to investigate and take action to protect the interests of consumers collectively and to enforce compliance among advertisers, manufacturers and service providers.

2022 Guidelines Target Misleading Advertising

In a significant regulatory step, the CCPA issued the "Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022" under Section 18 of the Consumer Protection Act, 2019.

These guidelines introduce comprehensive rules governing advertising practices, including:

• Conditions for non-misleading and valid advertisements

• Regulation of bait advertisements

• Prohibition of surrogate advertising

• Restrictions on advertisements targeting children

• Mandatory disclaimers in advertisements

• Duties and responsibilities of manufacturers, service providers, advertisers and advertising agencies

The guidelines aim to ensure transparency and prevent deceptive promotional strategies that could mislead consumers.

Due Diligence Mandatory for Celebrity Endorsements

Clause 13 of the guidelines sets strict requirements for endorsements used in advertisements.

It mandates that endorsements must reflect the genuine and reasonably current opinion of the individual or organisation making the claim. The endorsement must also be based on adequate information or experience with the product or service being promoted.

Additionally, the rules ensure parity between domestic and foreign professionals.

If Indian professionals are legally barred from endorsing advertisements related to their profession, foreign professionals in the same field are also not permitted to endorse such advertisements.

Strengthening Consumer Trust in Advertising

The government said the combined framework of the Cable Television Advertising Code and the CCPA's advertising guidelines is designed to curb deceptive marketing practices and safeguard consumer interests.

These measures aim to promote responsible advertising, transparent endorsements and stronger consumer protection in India's rapidly expanding media and advertising ecosystem.

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