MCA to set up inter-ministerial group to curb misleading ads
Moneylife Digital Team 26 April 2012

The ministry of consumer affairs has said that it will soon set up an inter-ministerial group to tackle misleading ads. The group will have the powers take suo moto action against errant advertisements and also to withdraw them

The menace of misleading advertisements such as tall claims made by beauty and financial products, using fake testimonies, pictures in ads related to educational and real estate, have come under the government’s scanner. The ministry of consumer affairs has said that it will soon set up an inter-ministerial group to tackle such ads. This group will take suo moto action against errant advertisements and will also have the power to withdraw them.

Rajiv Agarwal, secretary, Department of Consumer Affairs-Foods and Public Distribution said that, “We may have an inter-ministerial group which will take up fit and proper cases, where the government will be the complainant. We may have an investigative agency like MRTPC (Monopolies and Restrictive Trade Practices Commission). We need to take steps to investigate unfair trade practises and misleading advertisements.” Mr Agarwal was speaking at a seminar on “Impact of Misleading Advertisements on Consumers.

Last year, in September, the Prime Minister’s Office (PMO) had directed the Department of Consumer Affairs to prepare a draft regulation to keep a check on misleading advertisements. Following, the three ministries—information and broadcasting, consumer affairs and health—were coordinating to formulate a regulatory mechanism.

Mr Agarwal said that the group will have the power to order the withdrawal of an ad and it will then go to a consumer court. Currently, Section 2 (r) of the Consumer Protection Act provides a comprehensive definition of unfair trade practice, while Section 14 deals with the directions that the court can order on such practices. However, consumer courts have no power and cannot deal with misleading advertisements like the MRTPC.

Speaking at the same seminar, Prof KV Thomas, minister of consumer affairs, food & public distribution, said that, “the consumer courts neither have the power nor the infrastructure to investigate, suo moto into misleading advertisement nor take up such cases on their own, as done by the MRTP Commission. Nor do they have an investigative wing like the office of the DG (Investigation and Registration) under the MRTP Act.”

He added, “The consumer courts can only adjudicate over complaints filed before them. However, the consumer courts can issue interim orders stopping such advertisements pending disposal of the case. They can give directions to the advertiser to discontinue such advertisements and not to repeat it. They can award compensation for any loss or suffering caused on account of such unfair trade practices, they can also award punitive damages and costs of litigation.”
Mr Agrawal also said that the government is very keen on the concept of “corrective advertisement” as there were already provisions for it. It only needs to be more active as it will act as a deterrent for advertisers indulging in making misleading ads.

In India, the advertising industry is represented by the Advertising Standards Council of India (ASCI). The self-voluntary body insists that its independent review committee effectively acts against fake and misleading advertisements. However, ASCI can only act on specific complaints; it cannot initiate suo moto action or impose penalties.

Comments
sv
1 decade ago
Curious: Is it ok to call something Taaza milk when it was packed months ago? How about Real juice when the actual juice content is low, with plenty of sugar and flavor added? How about 'nature identical flavor' meaning artificial i.e. chemicals used to mimic a flavor? How about packaging on which it is hard to find the date and weight? How is something called whole wheat when whole wheat is only a small part of the flour used? How about what is passed off as chocolate when it has next to no cocoa content?
Aban
1 decade ago
Constituting a committee is the safest way of sitting over such important matters for ages, ever rathetr!
Any way, what about banning the "use of child labour" in ads.?
Vijay Trimbak Gokhale
1 decade ago
Recently I had a very pleasant experience with the working of Advertising standards Council of India with it's efiicient, time bound and above all transparent grivence redressal process. The entire process/procedure is described on it's website and is followed in terms of letters and spirit. I had complained aginst misleading statements in AMFI's booklets published to propagate mutual Funds. The complaint was considered in a defined manner. It was upheld. That reminded me of Mr. C.K. Prahlad's (noted mangement expert) statement that people really do not mind if the verdict is against them if they realise that process for redressal was just, fair and transparent. It must be contrasted with other regulators like SEBI,IRDA and to some extent RBI who frown upon citizens who diligently bring irregularities to their attention and instead of looking into it in a dispassionate manner become hostile to such citizens. There is no point saying that they should intrpspect.
malq
Replied to Vijay Trimbak Gokhale comment 1 decade ago
Dear Vijay Trimbak Gokhale ji, your feedback on ASCI highly appreciated, and on that basis, I've filed a complaint as follows, and look forward to their response and progress.

""Ingredients/contents are often written in extremely small font on packaging and are close to illegible. Packaging is certainly a part of advertising. I would like to complain about this and request that you please ensure that the same information as provided on the packaging is also available on the web-sites of the products being advertised/sold in India - and also in a larger font size sent by post, if requested by a consumer.""

Humbly submitted/VM
Vijay Trimbak Gokhale
Replied to malq comment 1 decade ago
I would suugest that you should bring out a specific case with all possible evidence in support and request ASCI to take view in that specific case and also issue general guidelines,if not already issued. In case they are already issued they may be brought again to the attention of member advertisers of ASCI.
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