How does Misleading Advertising affect the Consumers

September 27, 2024
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How does Misleading Advertising affect the Consumers

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How does Misleading Advertising affect the Consumers

September 27, 2024

Registrationwala

We’ve all purchased products after watching a TV commercial. Some products definitely didn’t meet our expectations. Perhaps you purchased a face wash for controlling your acne and reducing your dark spots but it was useless. Or maybe you bought a shampoo or hair oil to help with hair growth but it didn’t help at all. Since these products didn’t meet your expectations, it is safe to say that their commercials were misleading. In this blog post, we’ll understand the meaning of misleading advertising and how it affects the consumers.

What is Misleading Advertising?

Misleading advertising refers to the act of publishing, transmitting, spreading or publicly circulating an advertisement containing a false claim or statement. Generally, this advertising is done to promote sale of property, goods or services. Misleading advertising is also known as false advertising.

According to Section 2(28) of the Consumer Protection Act 2019, a misleading advertisement is any advertisement that:

Falsely describes a product or service; or
gives a false guarantee to, or is likely to mislead the consumers as to the nature, substance, quantity or quality of such product or service; or
conveys an express or implied representation which, if made by the manufacturer or seller or service provider thereof, would constitute an unfair trade practice; or
deliberately conceals crucial information.

False and Misleading Advertising Examples

Some examples of misleading advertisements in India are:

Advertisements for products that claim to reverse genetic hair graying. This is scientifically impossible.
Advertisements for products that claim to make you 10+ years younger.
Advertisements for hair products that’ll give ‘completely’ bald men a head full of hair.
Advertisements for food products that are half their size and quantity in reality.
Advertisements for herbal products that guarantee to make you taller even though you’re past the age for growing taller.
Advertisements by educational institutions with false claims regarding job placements and success rate.

Impact of Misleading Advertising

Showing misleading advertisements in TV, newspapers or magazines violate ethical principles. All businesses should advertise their products and services with honesty and truthfulness.

Misleading advertisements manipulate the consumer perception and exploit their vulnerabilities for commercial gain. Businesses that come up with misleading ads persuade individuals to make purchasing decisions based on fake claims. Due to such advertisements, consumers waste their hard earned money.

Many times, products shown in misleading ads come with hidden fees. So, consumers end up paying more than their budget generally allows. Many products with false claims give hope to consumers only to disappoint them later. This can affect the mental health of consumers.

Also Read: How to Protect Yourself from Unfair Trade Practices in India?

Misleading Advertising Cases

Let’s check out some misleading advertising cases in India:

Case 1: Shankar IAS Academy

In September, 2024, Shankar IAS Academy was fined Rs. 5 lakhs by the Central Consumer Protection Authority (CCPA) for misleading advertising regarding the 2022 UPSC Civil Service Exam. It was discovered that the coaching institute made false claims regarding its success rate and courses opted by successful candidates.

Case 2: Indiyaa Distribution Network LLP

In July 2024, CCPA fined Indiyaa Distribution Network LLP Rs. 10 lakhs for running misleading advertisements related to its joint-pain-relieving herbal product Dhuan Dhaar Oil. It was discovered by CCPA that the company made false claims about the efficacy of the product.

Case 3: Cloudtail

In 2022, CCPA levied Rs. 1 lakh fine on Cloudtail for selling pressure cookers on Amazon after violating the mandatory BIS standards. The company was asked by the authority to recall 1,033 pressure cookers and refund the money to its customers.

FAQs about Misleading Advertising

Q1. Where to complain about misleading advertising in India?

A. You can file a complaint with the Department of Consumers or the Central Consumer Protection Authority.

Q2. Which Act protects consumers from misleading and false advertisements?

A. The Consumer Protection Act, 2019.

Q3. Where can you file an online complaint against a misleading advertisement?

A. You can file an online complaint against a misleading ad by visiting the Grievances Against Misleading Advertisements (GAMA) portal of the Government of India.

Q4. Can you end up in jail for making a misleading advertisement?

A. Yes, according to Section 89 of Consumer Protection Act (CPA), businesses who make misleading advertisements may get punished with up to two years in prison.