Author: Princess Chopra, Institute of Legal Studies and Research, GLA University, Mathura

This article discusses the increasing use of misleading advertisements by companies for selling their products. This practice often harms the interest of consumers by violating their right to be protected from unfair trade practices. Every year millions of Indians lose money to online scams and frauds related to consumer goods. The consumers in India are lured into buying by claiming an unrealistic performance benefit by the product. Such claims are absolutely false. This article views this real-life problem in the light of Consumer Protection Act, 2019 and other statutory provisions in India, along with other examples. The Central Consumer Protection Authority or CCPA is a body which addresses the issues related to consumer right violations, unfair trade practices and misleading advertisements.  The CCPA and Consumer Protection Act has been working for the prevention of unfair trade practices and implementation of fines and punishments for the offenders. The fight against the misleading advertisements is ongoing in India and the decision of the apex court in multiple cases reflects the strong resolve of the judiciary to curb this practice.

KEYWORDS: Misleading advertisements, Consumer Protection, Consumer Rights, Product misrepresentation,  Unfair Trade Practices, Consumer Disputes.

Decoding the Deceptive and Misleading Advertisements

Advertisements are the main source for the people for the consumers to know about the multiple goods and services available in the market and how they all are distinct from each other. Enterprises spend exorbitant amounts of money to make sure that their product reaches out to the public in a positive light. Advertisements can be in the form of billboards, flyers, or even digital. The digital form of advertisements, such as running ads on Social Media platforms like Facebook and Instagram have proven to be more effective in current trends instead of traditional platforms like radios or newspapers. As advertisements are essential for any company to grow, advertising is a growing industry on a global scale. India's ad spending is forecasted to reach US$15.78bn in 2025. 

The main problem arises when the essential tool of advertisements is misused by companies. A misleading advertisement is an advertisement which deceives or is likely to deceive the persons to whom it is addressed or whom it reaches, and which is likely to affect their economic behaviour.Misleading advertisements include deceptive practices like making false claims about the product or exaggerating the uses of it.  The Advertisement Standards Council of India (ASCI) lays down the self-regulating code for the advertisements in India. It provides that the advertisements by the enterprises should be honest, truthful, and non-offensive. They should not be misled by ambiguity or omission. It also provides redressal as the consumers can file a complaint against such misleading advertisements.

 “Patanjali”, a company founded on the basis of Ayurveda, manufactures a wide range of products such as supplements, cosmetics, and herbal and organic food items.  During the COVID-19 Pandemic, Patanjali released a similar Ayurvedic medicine named as “Coronil” which claimed to cure Corona Virus and was also approved by the World Health Organisation. WHO rejected these claims and also criticized them. Later, Patanjali again made several claims about how their medicines could cure any disease completely. It also ran a poster against the Pharma and Medical Industry claiming that allopathic medicines have side effects while Patanjali’s medicines are scientifically proven to have none.  Following this event, the Indian Medical Association sent a 1000 crore defamation notice under Section 499 of IPC (Indian Penal Code 1860) in the month of May 2022. The Indian Medical Association later approached the Supreme Court for the misleading advertisements by Patanjali. The Supreme Court issued several orders to Patanjali to cease their advertisements. Patanjali did not comply with the orders of the Supreme Court which resulted in Contempt of Court notice for the company.B.   Diverse Spectrum of Misleading Advertisements

According to a report by ASCI, almost 10,000 complaints were registered with ASCI for misleading advertisement, out of which 93% were on digital platforms. There are multiple ways through which consumers are misguided. One of which is “Lack of Honest Representation in Advertisements”. It is often defined as “any form of advertising communication whose intention is to deceive or mislead consumers concerning a product or service. This is through overstating, hidden conditions, or manipulated images that project a deceptive impression”. 

For instance, in the case of Central Consumer Protection Authority (CCPA) vs. Rapido, 2024,  Rapido, a popular online cab-bike booking service, claimed that their rides were cheaper than Auto-Rickshaws and also offered lower waiting times. When investigated by CCPA, these claims turned out to be false.

Another deceptive practice is deliberately hiding or concealing crucial information about the product to influence customers. It also includes presenting half- truth regarding a product or service to the consumer. It influences the consumers to buy but also harms their rights as they are not aware of the true nature of the goods they are buying.

For instance, Nestlé India advertised Maggi noodles as both tasty and healthy. But they concealed the information about the true nature of the noodle. The laboratory investigations by Food Safety and Standards Authority of India (FSSAI) revealed that it contained both lead and Monosodium Glutamate (MSG) in excess. 

Another unfair practice of advertisement is Endorsement Misrepresentation. When celebrities or Influencers advertise a product without using it personally or verifying its truthfulness. Consumers are lured into purchasing these products as the influencers claim that they have personally used these products and benefitted from them. But actually these are just advertising strategies. For instance, in 2025, popular Tollywood actors Rana Daggubati, Vijay Deverakonda and Prakash Raj were found endorsing betting and gambling websites through their social media handles. The celebrities portrayed the websites as trustworthy and legitimate. It was later found that these websites were running illegally and unregulated.

1. Statutory Provisions against Misleading advertisements

The  primary act which governs the rights of the consumers against misleading advertisements is the Consumer Protection Act, 2019. It mandates the setting up of various committees and councils for the promotion of rights of consumers in India. It also lays down monetary as well as exemplary punishment for violation of these rights. The act sets up consumer protection authority at central, state and district level. The Central Consumer Protection Authority has the highest level of jurisdiction in matters relating to consumer rights. 

These authorities have been prescribed multiple responsibilities under the act. It has been trusted with the promotion of this field of law in the country. The authority is responsible for research in this field and also for conducting awareness programmes. It also takes action against the defaulters. The act prescribes imprisonment up to 2 years and fine of up to Rs. 10 lakhs for first offenders, and imprisonment up to 5 years and Rs. 50 lakhs for repeated offences in misleading advertisements. When a complaint has been filed regarding misleading advertisements by a company, the CCPA is authorized to conduct the investigation regarding the complaint. For instance, a person files a complaint about a drink which claims that it is healthy and does not contain sugar, CCPA, then conducts research with other authorities like Food Safety and Standards Authority of India (FSSAI) into the product and finds if the claims are true or false.  Multiple sections of the Consumer Protection Act, 2019 lay down conditions and punishments for misleading advertisements-

a. Section 21: Authority to penalize misleading advertisements

The Act provides CCPA powers against misleading advertisements. It authorizes CCPA to order any company to discontinue or modify any advertisement if it is found to be misleading or unfair in competition. It can also impose a monetary penalty up to Rs.50 lakhs on endorsers if it seems necessary. The powers of the authority goes up to the extent where it can prohibit any endorser from making any advertisement up to 1 year, and can also be extended to 3 years. 

b. Section 89: Punishment for false or misleading advertisements

The act prescribes for both imprisonment and fines for misleading advertisements. In case of first offence, the term for imprisonment may extend up to 2 years and fine may extend up to Rs. 10 lakhs. In case of subsequent offence, the term for imprisonment may extend up to 5 years, and the fine may extend up to Rs. 50 lakhs.

2. Supplementary Legislations and Frameworks 

It is not just the Consumer Protection Act, which plays a crucial role in prevention of misleading advertisements. Other acts, laws, regulations, also play a key role in their relevant field to protect the interest of the consumers and prevent false advertisements. Some of them are as follows:-

a. Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954

This act prohibits the advertisement of such medical products which claim to have magical results. Such advertisements are deceptive as the result promised cannot be achieved scientifically in such a miraculous way. The most common examples of these in today’s world are weight loss tablets. This act makes such advertisements a cognizable offence.

b. Cable Television Network Act, 1995

This act prohibits the transmission of false or misleading advertisements, and other advertisements that do not follow the standards on cable networks

c. Bureau of Indian Standards (Certification) Regulations, 1988

This act imposes rules on use of BIS certification mark users. It prevents them from publishing false or misleading advertisements.

The Consumer Protection Authorities at different levels are always active, working on research for promotion of consumer protection rights or taking actions against the violators of its guidelines. In the past few years, multiple cases have occurred because of misleading advertisements, which have turned to landmark judgements in the field of consumer rights. Some of them are listed below-:

1.  VLCC Coolsculpting Controversy

VLCC, a cosmetic company, was fined Rs. 3 lakhs by the CCPA for making false claims about its slimming programmes and weight loss treatments using CoolSculpting procedure. It issued statements like “lose 600 grams and 7 cms in 1 session”, which were found to be false. The “before-and-after” images shown along with the advertisements were also misleading. The advertisement violated the consumer’s rights by informing them that it was not a weight-loss but fat-loss treatment which works on localized fat bulges. The laboratory trials by US-FDA did not include Indian bodies. The company has submitted the penalty amount to the authority.

2. Manipulative claims of UPSC Excellence by Drishti IAS

Drishti IAS, or VDK Eduventures Pvt. Ltd., is a popular coaching centre which helps students in preparation of civil services examination or UPSC. Drishti IAS was fined Rs. 5 lakhs for publishing misleading advertisements related to successful candidates in the examination. Drishti IAS in its advertisement claimed 216+ selections in the examinations along with the names and photographs of the candidates. However, CCPA found, in its examinations, that Drishti IAS concealed crucial information regarding the courses opted for by the candidates from the consumers. 75% of the successful candidates opted for the free Interview Guidance (IGP), after clearing the examinations independently. Such unfair hiding of information violates the right of the consumers.

3. Sensodyne’s dubious promotions 

Central Consumer Protection Authority or (CCPA) took action against Sensodyne, a popular dental-care brand, and also imposed a fine of Rs.10 lakhs for publishing misleading advertisements about being highly recommended by dentists. It claimed that Sensodyne is recommended by dentists worldwide and world’s no.1 sensitivity toothpaste. It also claims that it is clinically proven relief which works in 60 seconds. The CCPA then examined the validity of these claims and found that the claims made regarding the worldwide prominence of Sensodyne were false, as the survey was only conducted with Indian dentists. The CCPA has ordered Sensodyne to immediately discontinue their advertisements with the claims of worldwide prominence.

4. Drip-pricing Deceptions by FirstCry

The CCPA has imposed a penalty of Rs. 2 lakhs on M/s Digital Age Retail Pvt. Ltd. (FirstCry) for false and misleading price representation. FirstCry was found displaying products with the representation “MRP inclusive of all taxes”, while during checkout, it imposed an additional GDP on the discounted price. It created confusion among the consumers about the final payable amount. After complaints on the National Consumer Helpline (NCH), the CCPA intervened and ordered the company to rectify its price representations of the products and adopt more transparency in the display of prices

5. Controversial Sri Ram Mandir Ayodhya Prasad claims

The CCPA had issued notice to Amazon Seller Services Pvt. Ltd. for allegedly engaging in deceptive trade practices involving the sale of sweets under the name of “Shri Ram Mandir Ayodhya Prasad” on the Amazon platform. On examination, the CCPA found that crucial information regarding the true nature of the products were being concealed. It was found that the products were being falsely represented to influence the decision of the consumers into buying as the consumers would not have bought if these claims would not have been made.

The CCPA had sought response from Amazon and asked them to discontinue the sale of such misleading products.

All countries have markets and consumers, and where the consumers exist, it is necessary to provide them with rights and protections. Different countries have different legal statutes, acts, frameworks to protect their consumers from unfair practices and violations of their rights. As the Indian framework has been already been discussed in detail, the comparison of other countries’ consumer protection framework has been laid down-:

1.     United Kingdom: 

The rights of the consumers are primarily protected by Consumer Rights Act, 2015 (CRA). The Consumer Protection from Unfair Trading Regulations, 2008 (CPR) sets out a general duty on traders to not engage in unfair trading practices, which are known as ‘blacklist’ of practices. The blacklist also includes false claims regarding cure of illnesses. 

2. United States of America:

The Federal Trade Commission Act, 1914 is the main statute which protects consumer rights and prevents misleading advertisements in the USA. It penalizes the unfair trade practices which affect commerce. The Federal Trade Commission, similar to the Central Consumer Protection Authority in India, is authorized to act against such unfair practices. It can investigate complaints, penalize wrongdoers, and prohibit the publication of such advertisements. The FTC does not only act against misleading advertisements, but also against hidden crucial information, similar to the Consumer Protection Act, 2019. Till now, FTC has taken actions against multiple companies like Skechers and Volkswagen for false or misleading advertisements.

3. China

China is known to have one of the toughest advertisement laws in the entire world. After the amendment in the statute in 2015, It has even banned the use of children under 10 and the images of national leaders as endorsers. The Advertising Law of the People’s Republic of China, 2021 is the primary law which governs consumer rights and prohibits false or misleading advertisements. The act establishes administrative bodies at national, state, and local level. 

4. Japan

Japan has multiple acts in place for protection of consumers in different relevant fields like pharmaceuticals, commerce, etc. But the primary act which governs the rights of consumers is the Act against Unjustifiable Premiums and Misleading Representations (AUPMR), similar to the Consumer Protection Act, 2019 in India. Consumer Affairs Agency (CAA) and Fair Trade Commission (JFTC) are the main enforcing authorities for the violation and promotion of consumer rights. Japanese consumer laws mandate the verification of the authenticity of the product by endorsers and influencers, as they are also held responsible for violations. The main penalties for offenders include reputational damage and monetary penalties which can exceed up to Rs. 17 lakhs. 

In conclusion, consumer protection law is a growing field all over the world, especially in India. With the advent of the digital age, this branch of law now requires additional measures and changes. Misleading advertisements do violate the rights of the consumers to know the actual nature of the product or service they are spending their money on. This unfair practice can take place in multiple ways around us, like hidden information about the ingredients of a fruit juice or even unverified health benefits claimed by the same juice. Consumer Protection Act, 2019, through its multiple sections, strives to eliminate practices like such. Other acts also make provisions to make sure that the consumer knows all the true information that they need to know about their products and services like drugs, cosmetics, etc. The Central Consumer Protection Authority is a vigilant protector which is not tolerant of any kind of misleading advertisements. Other countries have their own framework for the consumer laws which are mostly similar to the Indian model of a primary law and different levels of enforcing authorities. To make a permanent restriction against misleading advertisements, Consumer Awareness programmes are important as they would help them recognize the reality of an advertisement. Transparency regarding claims made by companies and mandating the presentation of scientific proof for those claims would also prove to be helpful. The celebrities and influencers which endorse a product or service should also be held liable for any deceptive practice found in the same. It would raise the level of verification before advertisement. Such actions would curb the manipulative and deceptive practices in consumer law.