Advisory for online advertising.

 

Advisory for online advertisements –


 

The Consumer Protection Act, 2019 gives the Central Consumer Protection Authority (‘Authority’) wide ranging suo motu powers to deal with issues related to consumers as a class. The Authority is specifically strict with issues relating to false/misleading advertisements.

A false or misleading advertisement in relating to any product or service, means an advertisement which –

A)     Falsely describes such product or service; or

B)      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

C)      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

D)     Deliberately conceals important information.

If the Authority is of the opinion that it is necessary to impose a penalty on a penalty in respect of a false or misleading advertisement, it may impose on a manufacturer or endorser a penalty upto Rs 10 lakhs.

 

Examples of matters where such penalty was imposed

1.      Luminous – The Company was claiming to provide a warranty extending to a period of 36 months, however, the actual warranty only extended upto 18 months. A penalty amounting to Rs 1 lakh was imposed on the company on account of false advertisement.

 

2.      GlaxoSmithKline Asia Pvt. Ltd. (GSK) – Misleading advertisements pertaining to “Sensodyne Toothpaste” making the following claims – “World’s No.1 sensitivity toothpaste”, “Recommended by dentists worldwide” and “Clinically proven relief, works in 60 seconds”. Directions were passed to discontinue the advertisements and pay a penalty amounting to Rs 10 lakhs.

 

3.      Iqra IAS – Company displayed testimonials from top rank holders of Upsc of the years 2015-2017 and made the following claims – “Within a year we became the top UPSC coaching class in Pune”, “Provide the best UPSC online prelims test series 2020” and “only academy to have the best faculty from all around India”.  A penalty amounting to Rs 1 lakh was imposed form false advertisement and unfair trade practice.

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