Navigating the Complex World of Misleading Advertisements: What Consumers Need to Know

Every time you see a fairness cream promising glowing skin in seven days, a coaching institute guaranteeing 100% placement, or an e-commerce sale slashing prices by 70% on items that were never sold at the original price – you are likely looking at a misleading advertisement. In India’s fast-growing consumer market, these tactics are everywhere, from prime-time television to your social media feed. Understanding what makes an advertisement “misleading” under Indian law – and how to protect yourself – is no longer optional knowledge. It is consumer literacy that every person needs.

What is a misleading advertisement? 🔗

Section 2(28) of the Consumer Protection Act, 2019 provides the foundational legal definition. A misleading advertisement is one that provides a false description of a product or service, gives a false guarantee to or is likely to mislead consumers, conveys an express or implied representation that would constitute an unfair trade practice, or deliberately omits essential information about the product. Notice that the law captures both outright lies and strategic silences – what a brand chooses not to say can be just as misleading as what it does say.

It is also important to distinguish misleading advertising from puffery. Advertisers can use superlatives such as “the best,” “number 1,” or “the greatest” to boost the merits of their products. However, where advertising claims are expressly stated to be based on, or supported by, independent research or assessment, the source and date must be indicated in the advertisement. The moment a brand moves from cheerful exaggeration to a claim it cannot substantiate, it crosses into misleading territory.

Common forms of misleading advertisements 🔗

Misleading advertisements do not come in a single shape. They take many forms, some obvious and some quite subtle. Here is a breakdown of the most prevalent types you are likely to encounter.

Exaggerated product claims 🔗

This is the most common form. Advertisements that claim a product can cure diseases or ailments without sufficient scientific evidence, or that focus on attractive features while failing to mention critical drawbacks or risks, fall squarely into this category. A classic Indian example: Usha International’s advertisement for its Usha Honeywell evaporative air cooler claimed it “cools up to 80 square metres,” which was found inadequately substantiated under test conditions and misleading by exaggeration.

False warranties and guarantees 🔗

Many companies give false guarantees without specifying the remedy if that guarantee fails. Under the ASCI Code, claims such as “guaranteed for up to five years” are not accepted if there is a likelihood of the consumer being misled either as to the extent of the product’s availability or the application of the guarantee. When a brand offers a “lifetime warranty” with conditions buried in fine print that make it nearly impossible to claim, that constitutes a false guarantee under the law.

Misleading imagery and visual manipulation 🔗

Visuals can mislead just as effectively as words. Photoshopped “before and after” images, misleading camera angles used to make a food product look larger, or models with digitally altered appearances – all of these shape consumer perception in ways that the actual product cannot live up to. False colouring is one form of misleading consumers into believing food is fresher, riper, or otherwise healthier, often achieved using chemicals that harm consumer health. The CCPA’s 2022 Guidelines specifically address disclaimers and require that they not be used to contradict or conceal misleading visual claims made in the main body of an advertisement.

Exploitation of professional and scientific concepts 🔗

Advertisements frequently dress up ordinary products with white lab coats, technical jargon, and references to vague “clinical studies.” This creates a false impression of scientific credibility. In one of its orders, the CCPA noted the absence of any compelling study or material indicating the worldwide prominence of Sensodyne products and directed it to cease the telecast of its misleading commercial in which it was claimed to be the world’s number one sensitivity toothpaste, also imposing a penalty of ten lakh rupees. The use of foreign dentist endorsements and unverifiable global rankings was precisely the kind of professional concept exploitation the law targets.

Illusory discounts and false pricing 🔗

Advertisements that falsely claim massive discounts or prices lower than the market rate, when in fact the product is sold at the same price as other competitors, are a recognised form of misleading advertising. E-commerce platforms have frequently been pulled up for this. Amazon Kindle’s advertisement for “Unlimited Reading” was held to be unsubstantiated as a limit of 10 books was advertised as an “unlimited offer,” and OLA Cabs’ claim for “OLA Micro @Rs6/km” was found misleading by omission.

Bait advertisements 🔗

Bait advertisements are produced or published with the intention of luring consumers into buying products or services at prices much lower than the actual price. The CCPA Guidelines, 2022 lay down that such an advertisement should not be published unless there is a valid purpose for the lower price – such as export surplus or defective goods – and that the advertiser must ensure sufficient stock exists to meet anticipated demand. A consumer study released in August 2020 suggested that 73% of consumers had encountered bait advertising in the preceding year.

Surrogate advertising 🔗

Surrogate advertisement refers to advertising of goods and services that are otherwise restricted or prohibited from being advertised under Indian law. Alcohol and tobacco brands have long used this tactic – advertising “music CDs,” “soda water,” or “pan masala” under their brand names to keep themselves visible to consumers while technically staying within the law. The Guidelines clarify that the use of a brand name or company name associated with prohibited goods will not automatically constitute surrogate advertising if the advertisement is otherwise not objectionable, but they have prohibited indirect advertisements that circumvent such prohibition.

Real cases that shaped the conversation 🔗

India has seen several high-profile cases that illustrate how misleading advertising plays out in practice.

The Patanjali Coronil controversy is perhaps the starkest recent example. In 2023, the Supreme Court directed Patanjali to halt its advertising campaigns after finding that its advertisements deceived consumers and contravened the Drugs and Magic Remedies Act. The advertisements made unsubstantiated claims that Patanjali products could cure serious diseases such as heart conditions and asthma, and disparaged modern medicine. The case ended with Patanjali issuing a public apology and removing 14 products from its shelves.

In the education sector, the Consumer Complaint Council of the ASCI in 2017 upheld that 75 advertisements in the education category were found to be false and misleading. Coaching institutes promising guaranteed top ranks or 100% job placements – without any verifiable data – have been a consistent source of consumer complaints across India.

The legal and regulatory framework 🔗

India’s framework for regulating misleading advertisements draws from multiple laws and institutions working in parallel.

Consumer Protection Act, 2019 and the CCPA 🔗

The Central Consumer Protection Authority (CCPA) has been established under Section 10 of the Consumer Protection Act, 2019 for regulating matters relating to violation of the rights of consumers, unfair trade practices, and false or misleading advertisements which are prejudicial to the interests of public and consumers. When the CCPA finds an advertisement to be misleading, it can order its discontinuation and impose significant financial penalties. The CCPA may impose a penalty of up to ₹10 lakhs on manufacturers, advertisers, and endorsers for misleading advertisements, and up to ₹50 lakhs for subsequent contraventions. The Authority can also prohibit the endorser of a misleading advertisement from making any endorsement for up to 1 year, extendable to 3 years for repeated violations.

CCPA Guidelines on misleading advertisements, 2022 🔗

On June 9, 2022, the CCPA issued the Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022, which apply to advertisements published on all platforms including print, television, and digital platforms. These guidelines were a landmark step because, for the first time, they moved beyond a broad definition and gave specific, actionable criteria. For the first time, through these Guidelines, the Government clarified on the elements of a valid advertisement, laying down parameters for businesses to verify if their advertisements are compliant.

The Guidelines also introduced clear rules on disclaimers. Disclaimers must not contradict the material claim made in the advertisement, must not try to withhold information relevant to any claim, and must not try to correct a misleading claim that has already been made. A disclaimer must be written in the same language as the advertisement’s claim, and the font used must match that of the claim. This directly addressed the common practice of brands making bold headline claims while hiding limitations in tiny-font fine print.

Advertising Standards Council of India (ASCI) 🔗

The ASCI is a non-statutory tribunal established as a self-regulated mechanism to introduce advertising ethics in India. It judges advertisements based on its Code of Advertising Practice, which applies to advertisements seen in India, even if they originate from abroad and are directed at Indian consumers. While ASCI’s orders are not backed by the force of law in the same way CCPA’s are, it serves as a significant first filter – and its findings can inform regulatory action.

Other relevant laws 🔗

Beyond the Consumer Protection Act, several other statutes apply in specific contexts. The Drugs and Magic Remedies (Objectionable Advertisements) Act prohibits misleading claims related to the treatment or prevention of specific diseases using drugs or magical remedies, and is commonly violated in advertisements for weight loss, sexual wellness, or miracle cures. The Food Safety and Standards Act, 2006 regulates misleading food labels and promotions. The Cable Television Networks (Regulation) Act, 1995 disallows advertisements that are misleading or not in conformity with the Advertising Code.

What consumers can do 🔗

India’s legal framework is only as effective as the consumers who use it. The CCPA deals with class action matters. For individual grievances and complaints, consumers may approach the National Consumer Helpline. Consumers can also lodge a grievance directly through the GAMA portal (Grievances Against Misleading Advertisements), which is monitored by ASCI under the Department of Consumer Affairs. For advertisements that cross into fraud, provisions under the Bharatiya Nyaya Sanhita, 2023 – particularly Section 318 on cheating – may also be invoked.

A few practical steps every consumer should keep in mind: always look for substantiation behind a “scientific” claim; check whether a discount is based on an artificially inflated “original” price; read the terms and conditions before assuming a guarantee means what it says; and verify endorser claims, since the only defence available to endorsers to evade sanctions under the Consumer Protection Act, 2019 is proving that they exercised due diligence to verify the veracity of the claims made in the advertisement. If a celebrity or influencer promotes a product recklessly, they too can face legal consequences.

The broader impact on consumers and markets 🔗

Misleading advertisements are not just a compliance problem for businesses – they cause real harm. Such false advertisements breach various rights of the customers such as the right to be informed, to choose, and to be safeguarded against potentially dangerous goods and services. In health-related advertising, the stakes are even higher: consumers may delay or avoid scientifically validated medical treatment while chasing products that make false cure-claims. In education advertising, misleading placement statistics can cost students years and significant money. And at a systemic level, repeated exposure to false promises erodes trust in the marketplace – making it harder even for honest businesses to be believed.

What do you think? With millions of advertisements now reaching consumers through digital platforms and social media, do you think India’s current legal mechanisms are equipped to handle the speed and scale of misleading content online? And when a celebrity endorses a product that turns out to be misleading, how much responsibility should they bear – should “due diligence” be a valid defence, or should the burden be stricter?

References

1. https://www.indiacode.nic.in/bitstream/123456789/15256/1/consumer_protection_act_2019.pdf
2. https://consumeraffairs.nic.in/acts-and-rules/consumer-protection-act-2019
3. https://doca.gov.in/sites/default/files/2023-03/Guidelines%20for%20Prevention%20of%20Misleading%20Advertisements.pdf
4. https://gama.gov.in
5. https://legislative.gov.in/sites/default/files/A2023-45.pdf