MxMIndia

Tag: Department of Consumer Affairs

  • Move expected to create greater deterrence and support enforcement

    CCPA and ASCI join hands to strengthen Advertising Regulation in India

    The Department of Consumer Affairs (DoCA) and The Advertising Standards Council of India (ASCI) both operate with a mutual goal of protecting consumer interests. This objective is central to the missions of both ASCI and the Central Consumer Protection Authority (CCPA) when it comes to the issue of misleading advertisements.

    It is noteworthy that ASCI’s code and associated guidelines in the area of advertising are harmonious with several guidelines enforced by the Central Consumer Protection Authority. These encompass guidelines concerning misleading advertisements, dark patterns, influencer guidelines, coaching institutes, greenwashing and more.  In light of this alignment, the CCPA has recognized that any violation of ASCI’s code pertaining to misleading advertisements may potentially contravene the Consumer Protection Act of 2019 and its related guidelines.

    Therefore, the CCPA has requested ASCI to forward any advertisement that is non-compliant with the ASCI Code and could potentially violate the Consumer Protection Act, 2019, along with its accompanying guidelines, to CCPA for appropriate action. Any such case escalated by ASCI concerning misleading advertisements will be promptly addressed and handled in strict accordance with the Consumer Protection Act 2019 by the CCPA.

    This collaboration comes amidst the growing complexity of the advertising landscape, especially with respect to digital advertising. Commenting on this development, Shri Rohit Kumar Singh, Secretary DoCA said, “The alignment between ASCI’s code and CCPA’s guidelines highlights a collective effort towards promoting transparency and fairness in advertising. With similar objectives, CCPA and ASCI can work in complementary ways to ensure that any infringements are addressed effectively. New challenges are being created by digital advertising, and keeping pace demands a collaborative approach with like-minded bodies.  Regulators working closely with self-regulators is an established best practice, and we hope that with this partnership, regulation of Indian advertising keeps getting more effective. Where voluntary compliance with the CCPA guidelines is not forthcoming, or in the case of repeat offenders, the CCPA has the powers to impose fines and penalties. We will not shy away from enforcing the provisions of the Consumer Protection Act as needed.”

    Manisha Kapoor, CEO and Secretary-General ASCI said: “We have been working closely with DoCA and CCPA on several issues, and we are truly delighted to deepen this relationship.  ASCI has deep expertise and specialization in advertising regulation and we thank CCPA and DoCA for their trust and their collaborative approach. A robust self-regulatory system helps all stakeholders and this partnership is a positive step in taking self-regulation to the next level.”

    DoCA and ASCI have, in recent times, held joint consultations and collaborations on several issues surrounding advertising such as Influencer Guidelines, Greenwashing, Dark Patterns and Surrogate Advertising, creating greater dialogue and alignment between industry, civil society and regulators. Advertising self-regulators around the world work closely with the governments in models of co-regulation in formal and informal ways. Given the complex nature of advertising today and the borderless nature of the online space, issues like disguised advertising, deepfakes and scams are coming to the fore, such partnerships gain significance in effective advertising regulation.

  • 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 😉