Blog Article

What Are Misleading Advertisements?

When you encounter an advertisement of winning a car on purchase of a LED television for ₹1,00,000; and that,  the company expects you to pay EMI to avail the vehicle (after winning), such a scenario is said to be misleading.

Any advertisement or promotion through television, Radio or any electronic media, Banners, Posters Newspapers etc, that misrepresents the geographic origin of goods and services, so as to mislead a consumer, is considered as a misleading advertisement. The Department of Consumer Affairs (DOCA) has launched its portal for registering online consumer complaints for Grievances Against Misleading Advertisements (GAMA).

In Simple terms, any advertisement that gives false information, making fake claims or violating any advertising code of conduct can be termed as a misleading advertisement.

Types Of Advertisements You Can Complain About

Media is said to be a social change agent that influence the way society, thinks, acts and feel. Such a rhetoric power can be also used a defamatory tool or promotional perceptive icon to mislead consumers to buy a product or service.

Any advertisement that appears to be misleading in different media platforms like:

• Newspapers
• Hoardings
• Television Channels
• Radio Channels
• Internet Sites
• Digital Billboards etc.

If any of the above advertisements are identified by a passing commuter/consumer to be misleading, such ads can be identified legally as False Representation/ Unfair Trade Practice.

How To Identify Misleading Advertisements

Unfair trade practice/false representation of goods and services through advertisements for the sake of sale promotion that uses unfair methods and deceptive practices of promotion will reach an extent of becoming controversial. However, the best way you can identify misleading advertisements is by identifying the misleading narrative that the ad builds.  

Misleading advertisements can be identified in several ways:

• When goods and services are not stated standard, grade or quality.
• When second hand goods or services are sold as new ones.
• When pricing related details of the product or service is misleading.
• When you cannot claim pre-existing guarantee of the product or service.  
• Offering gifts, prizes etc, to excite customers with no intention of providing them.
• Misleading advertisements that sell at bargain price.
• Selling goods that do not fall under any safety standards.

Similarly, goods and services that bring about manipulation of pricing details and conditions of delivery can be termed as Restrictive Trade Practice.

Misleading ads on pricing and conditions of delivery can be identified keeping in mind the following:

• Delay beyond the period agreed by a trader in supply of goods/services which has led or is likely to lead to rise in price.

Role Of ASCI In Curbing Misleading Ads

In India, the Advertising Standards Council of India (ASCI) acts as a self-regulatory body of preventing misleading advertisements and seeks to ensure that advertisements follow its code of self-regulation. Similarly the Competition Act, 2002 was established to protect the interest of the consumers and ensure freedom of trade markets in India. The Act was Amended in 2007 and thereafter in 2009.

The Act Prohibits:

• Practices and agreements that restrict free trading and competition between two business entities through advertisements.
• It bans the abusive situation of market monopoly.
• Provides opportunity for entrepreneurs to compete in the market.
• Prevents anti-competition practices and to promote a healthy competition in the market.  

In relation to the Competition Act, 2002; the goal of the ASCI is to ensure that advertisements:

• Conforms to its code for self-regulation that requires advertisements to be truthful and firm to customers.
• ASCI also prohibits advertisements that are offensive to public decency and morality.
• Non promotion of products which are hazardous or harmful to society/individuals, particularly minors.

In view of recognising the role of ASCI by governmental bodies and departments, the ASCI including the Consumer Complaints Council (CCC) play a predominant role in dealing with complaints received from consumers against ads that are considered false, misleading, Indecent, and Illegal unsafe practices that are unfair and against the ASCIs Code for Self-Regulation.