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.
Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam

Fiercely independent and pro-consumer information on personal finance.
1-year online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.

Fiercely independent and pro-consumer information on personal finance.
30-day online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.

Fiercely independent and pro-consumer information on personal finance.
Complete access to Moneylife archives since inception ( till the date of your subscription )

Any way, what about banning the "use of child labour" in ads.?
""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