The Department of Consumer Affairs’ Central Consumer Protection Authority (CCPA) has notified ‘Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022′ with the goal of curbing misleading advertisements, as well as safeguarding consumers who may be exploited or harmed by such advertisements.
The guidelines are intended to protect consumers from being duped by unsubstantiated claims, exaggerated promises, misinformation, and false claims. Such advertisements violate a variety of consumer rights, including the right to be informed, the right to choose, and the right to be protected from potentially unsafe products and services.
The CCPA was established under Section 10 of the Consumer Protection Act, 2019 to regulate matters relating to consumer rights violations, unfair trade practises, and false or misleading advertisements that are detrimental to the interests of the public and consumers, as well as to promote, protect, and enforce consumer rights as a class.
The Guidelines were notified in accordance with the powers granted to the CCPA by section 18 of the Consumer Protection Act, 2019. The Consumer Protection Act of 2019 defines misleading advertising in Section 2(28).
The current guidelines define terms like “bait advertisement,” “surrogate advertisement,” and “free claim advertisement” in great detail.
Several preemptive provisions on advertisements targeting children have been enacted in light of children’s sensitivity and vulnerability, as well as the severe impact advertisements have on their developing minds.
Disclaimers in advertisements are important from a consumer standpoint because they limit the company’s liability. As a result, guidelines state that a disclaimer shall not attempt to conceal material information pertaining to any claim made in such advertisement, the omission or absence of which is likely to render the advertisement deceptive or conceal its commercial intent, and shall not attempt to correct a misleading claim made in an advertisement.
It also states that a disclaimer must be written in the same language as the claim in the advertisement, and that the font used in the disclaimer must be the same as the font used in the claim. Similarly, clear guidelines are laid out for the duties of the manufacturer, service provider, advertiser, and advertising agency, as well as the due diligence to be performed prior to endorsing and others. Guidelines aim to protect consumers’ interests by increasing transparency and clarity in the way advertisements are published, so that consumers can make informed decisions based on facts rather than false narratives and exaggerations.
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