MxMIndia

Tag: CCPA

  • The government has issuesd ‘Guidelines on Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022’

    Mr B, please note: Govt may slap Rs 5mn fine on habitual offenders from amongst celeb endorsers. Plus ban for 3 years

    By Our Staff

     

    The Central Consumer Protection Authority (CCPA) under the Department of Consumer Affairs of the Government of India has notified ‘Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022’ with an objective to curb misleading advertisements and protect the consumers, who may be exploited or affected by such advertisements.

     

    The guidelines seek to ensure that consumers are not being fooled with unsubstantiated claims, exaggerated promises, misinformation and false claims. Such advertisements violates various rights of consumers such as right to be informed, right to choose and right to be safeguarded against potentially unsafe products and services.

     

    The CCPA has been established under section 10 of the Consumer Protection Act, 2019 for regulating matters relating to violation of the rights of the consumers, unfair trade practices and false or misleading advertisements which are prejudicial to the interests of public and consumers and to promote, protect and enforce the rights of consumers as a class.

     

    In exercise of the powers conferred by section 18 of the Consumer Protection Act, 2019, to CCPA, the Guidelines were notified

     

    Misleading advertisement has already been defined under section 2(28) of the Consumer Protection Act, 2019.

     

    The present guidelines define “bait advertisement”, “surrogate advertisement” and clearly provides what constitutes as “free claim advertisements”.

     

    Keeping in view the sensitiveness and vulnerability of children and severe impact advertisements make on the younger minds, several preemptive provisions have been laid down on advertisements targeting children. Guidelines forbid advertisements from exaggerating the features of product or service in such manner as to lead children to have unrealistic expectations of such product or service and claim any health or nutritional claims or benefits without being adequately and scientifically substantiated by a recognised body. The guidelines say that ads targeting children shall not feature any personalities from the field of sports, music or cinema for products which under any law requires a health warning for such advertisement or cannot be purchased by children.

     

    Disclaimers in advertisements play a pivotal role from consumer perspective since in a way it limits the responsibility of the company. Therefore, guidelines stipulates that disclaimers shall not attempt to hide material information with respect to any claim made in such advertisement, the omission or absence of which is likely to make the advertisement deceptive or conceal its commercial intent and shall not attempt to correct a misleading claim made in an advertisement. Further, it provides that, a disclaimer shall be in the same language as the claim made in the advertisement and the font used in a disclaimer shall be the same as that used in the claim.

     

    Similarly, guidelines have been laid for duties of manufacturer, service provider, advertiser and advertising agency, due diligence to be carried out before endorsing and others. Guidelines aims to protect consumer’s interest through bringing in more transparency and clarity in the way advertisements are being published, so that, consumers are able to make informed decisions based on facts rather than false narratives and exaggerations.

     

    Penalty for violating the guidelines are also clearly outlined. CCPA can impose penalty of upto Rs 1 million on manufacturers, advertisers and endorsers for any misleading advertisements. For subsequent contraventions, CCPA may impose a penalty of upto Rs 5 million. The Authority can prohibit the endorser of a misleading advertisement from making any endorsement for upto one year and for subsequent contravention, prohibition can extend upto three years.

     

    The guidelines can be viewed at

    https://consumeraffairs.nic.in/sites/default/files/file-uploads/latestnews/CCPA%20Notification.pdf

    PS: So, why did we put Mr B in the headline. Well, he’s a favourite of our friend Kamla. Yes, Kamla’s Pasand 😉

     

  • CCPA directs discontinuation of advertisements making claims "Recommended by dentists worldwide" and “World's No.1 sensitivity toothpaste"; imposes penalty of Rs 10 lakh

    CCPA passes order against Sensodyne ads

    By Our Staff

     

    The Central Consumer Protection Authority (CCPA) has passed an order against advertisements of Sensodyne products which make the claims “Recommended by dentists worldwide” and “World’s No.1 sensitivity toothpaste”. In February this year, CCPA had passed order an directing discontinuation of advertisement of Sensodyne products which show endorsement by foreign dentists.

     

    Notes a communique from the Ministry of Consumer Affairs, Government of India:

    “It may be mentioned that CCPA had initiated suo-moto action against advertisement of Sensodyne products on various platforms including Television, Youtube, Facebook and Twitter showing dentists practicing outside India (practicing in the United Kingdom) endorsing the use of Sensodyne products namely Sensodyne Rapid Relief and Sensodyne Fresh Gel for protection against teeth sensitivity and making claims that Sensodyne is “Recommended by dentists worldwide”, “World’s No. 1 sensitivity toothpaste” and “clinically proven relief, works in 60 seconds”.

     

    “After examination of the response submitted by the company, CCPA observed that the two market surveys submitted by the company in support of its claims “Recommended by dentists worldwide” and “World’s No.1 sensitivity toothpaste” made in the advertisements were conducted only with dentists in India. No cogent study or material were submitted by the company to substantiate the claims made in the advertisements or indicate any worldwide prominence of Sensodyne products. Thus, the claims were observed to be bereft of any reason or justification.

     

    ?With respect to the claim of “clinically proven relief, works in 60 seconds”, CCPA had written to the Drugs Controller General of India, Central Drugs Standard Control Organization (CDSCO) to furnish its comments on the correctness of the claims made by the company. CDSCO has directed The Assistant Drug Controller, Licensing Authority, Silvassa to investigate the claims made by the company since the product in question is manufactured under cosmetic license granted by State Licensing Authority, Silvassa. The Assisting Drug Controller has written to CCPA stating that the claims made by the company are under investigation and further action will be initiated after the hearing process. In view of the communication received from CDSCO and Assistant Drug Controller, Licensing Authority, Silvassa as regards the claim of “clinically proven relief, works in 60 seconds”, the matter now rests with Assistant Drug Controller, State Licensing Authority, Silvassa.

     

    “Therefore, CCPA has ordered discontinuation of advertisements of Sensodyne products which make the claims “Recommended by dentists worldwide” and “World’s No.1 sensitivity toothpaste” within seven days and directed payment of penalty of ₹10,00,000. Also, advertisements which show endorsements by foreign dentists have been ordered to be discontinued as per the earlier order passed by CCPA.

     

    “In the wake of consumer sensitivity around Covid-19 pandemic, CCPA took stringent action against misleading advertisements whereby 13 companies withdrew their advertisements and 3 companies made corrective advertisements.

     

    “Further, to safeguard consumer interest against misleading advertisements and unfair trade practices, CCPA has also issued two advisories. The first advisory was issued on 20.01.2021 calling industry stakeholders to cease making misleading claims that take advantage of the Covid-19 pandemic situation and are not supported by any competent and reliable scientific evidence. The second Advisory was issued on 01.10.2021 highlighting compliance of the provisions of Consumer Protection (e-commerce) Rules, 2020 which require every marketplace e-commerce entity to prominently display all information provided to it by seller under Rule 6(5) including name, designation and contact information of the grievance officer of the seller.

     

    “CCPA has also issued two Safety Notices under Section 18(2)(j) of the Act alerting consumers against buying goods which do not hold without valid ISI Mark and violate the BIS standards directed for compulsory use by the Central Government. While the first Safety Notice was issued on 06.12.2021 in reference to Helmets, Pressure Cookers and Cooking gas cylinders, the second Safety Notice was issued on 16.12.2021 in reference to household goods including electric immersion water heaters, sewing machines, microwave ovens, domestic gas stoves with LPG etc.”