Author : Ritu Sharma studying at Geeta Institute Of Law, Samalkha
To The Point
Misleading advertisements are one of the most serious threats to consumer rights in today’s digital age. They often present false, exaggerated, or incomplete information to influence consumer decisions. These ads may appear in traditional formats like print and TV or modern platforms like Instagram, YouTube, and Al-driven promotions.
In India, the Consumer Protection Act, 2019 addresses this concern directly. Under Section 2(28), a “misleading advertisement” includes any promotion that gives a false impression or deliberately hides important facts. The Central Consumer Protection Authority (CCPA) can penalize advertisers, endorsers (like celebrities or influencers), and publishers for violating these rules. Despite this legal protection, challenges remain. Many influencers don’t disclose paid promotions. Products are exaggerated using edited visuals or vague claims like “No. 1 brand” without proof. Surrogate advertising-like liquor brands promoting music CDs-is still common. Moreover, Al and deep fake tools make it easier to deceive consumers. The Advertising Standards Council of India (ASCI) also issues guidelines, especially for influencer content. This issue isn’t unique to India. Globally, countries like the U.S. (FTC) and U.K. (ASA) have strong watchdogs actively monitoring misleading ads and ensuring transparency.
In conclusion, while India has taken progressive steps, there’s a need for stronger digital regulation, clearer disclosure norms, and increased consumer awareness. Legal action alone isn’t enough-ethical advertising, platform accountability, and public education must work together to truly protect the consumer.
Abstract
In today’s digital and hyper-commercial world, misleading advertisements have become a pervasive threat to consumer rights. These deceptive promotions not only manipulate consumer choices but also distort fair market practices. With the rise of influencer marketing, digital platforms, and Al-generated content, misleading ads are no longer confined to traditional media. They now include social media endorsements, exaggerated claims, bait advertising, fake testimonials, and even Al-manipulated visuals that blur the line between real and fabricated content. The Consumer Protection Act, 2019 marked a significant legal reform in India by explicitly defining and regulating “misleading advertisements” under Section 2(28). It empowered the Central Consumer Protection Authority (CCPA) to initiate action against manufacturers, endorsers, and advertising agencies for promoting false or exaggerated claims. Recent crackdowns by the CCPA-such as penalties on celebrities for endorsing products without proper due diligence-signal a growing intent to hold parties accountable. However, enforcement remains a challenge. Digital advertisements can disappear, mutate, or reappear across platforms. Many influencers fail to follow the ASCI Guidelines (Advertising Standards Council of India), which mandate disclosure of paid promotions.
Moreover, grey areas like “surrogate advertising” (e.g., alcohol ads disguised as soda or music CDs) continue to exploit legal loopholes.
This article explores the evolution of laws on deceptive advertising in India, analyses key rulings, and compares India’s stance with global frameworks such as the Federal Trade Commission (FTC) in the U.S. It also examines the role of artificial intelligence, digital media algorithms, and consumer psychology in shaping modern advertising strategies. As the consumer base becomes more digital and youth-driven, the need for stricter regulation, transparency in digital endorsements, and consumer education becomes urgent. Legal literacy, ethical marketing, and robust grievance redressal mechanisms are crucial to curb consumer deception. The legal system must evolve in tandem with the advertising industry-balancing commercial innovation with the fundamental right of consumers to make informed choices based on truthful information.
The Proof
Maggi Noodles Ban (Nestle India Ltd v. FSSAI, 2015)
The Maggi case is a landmark example. Tests found high levels of lead and MSG, contradicting the brand’s “100% safe” claim. The product was temporarily suspended and Nestle faced intense legal examination.
Proof: Delhi High Court allowed re-testing and re-launch, but the damage was done to consumer trust.
ASCI Actions Against Influencers
The Advertising Standards Council of India (ASCI) flagged hundreds of influencer posts in 2023 for not disclosing paid promotions-violating ASCI’s Influencer Guidelines.
Proof: ASCI’s public report (2023) identified over 700 misleading digital ads within 3 months.
Dettol Handwash Case (2020)
Dettol ran ads claiming “99.9% virus protection against COVID-19” without medical validation. The ad was withdrawn after complaints.
Proof: ASCI ordered modification, citing violation of truthful advertising norms.
Lenskart’s “Free Glasses” Claim (2022)
Lenskart’s promotional ad was found misleading by ASCI because the “free” glasses came with hidden conditions.
Proof: ASCI ruled it as a deceptive ad and directed corrective action.
CCPA Guidelines (June 2022)
The government officially released Guidelines for Prevention of Misleading Advertisements, giving CCPA more power to fine up to 10 lakh for the first offence and *50 lakh for repeat offences.
Use Of Legal Jargon
Misleading Advertisement Defined under Section 2(28) of the Consumer Protection Act, 2019, it refers to any ad that gives a false impression, hides important facts, or exaggerates the benefits of a product/service.
Example: Claiming a cream gives “instant fairness” without scientific proof.
Unfair Trade Practice
Includes any business act that deceives or cheats the consumer. Covered under Section 2(47) of the same Act.
Example: Fake “limited-time offers” to rush buyers into purchasing .
Due Diligence
Refers to the responsibility of endorsers (like actors or influencers) to verify claims before promoting a product.
Legal Requirement: Under Section 21(5), endorsers can escape penalty only if they exercised due diligence.
Surrogate Advertising
A method of indirectly promoting banned products (like alcohol or tobacco) by advertising something else under the same brand name.
Example: Alcohol brands promoting music CDs or water bottles.
Endorser Liability
If a celebrity or influencer promotes a false claim, they can be fined or banned under Consumer Protection Act, 2019.
Example: A Bollywood star promoting a product with false health benefits.
Disclaimers and Disclosures
These are mandatory declarations (like “Ad” or “Sponsored”) to inform viewers that content is promotional.
As per ASCI Guidelines: All paid posts must clearly mention their promotional nature.
Central Consumer Protection Authority (CCPA)
A regulatory body with the power to investigate, recall products, penalize misleading ads, and protect consumer interests.
Related Case Laws
Nestle India Ltd. V. Food Safety and Standards Authority of India (Maggi Noodles Case), 2015
Court: Bombay High Court
What happened: Nestle advertised Maggi noodles as “safe” and “healthy,” but government labs found high lead and MSG levels. The product was banned temporarily.
Why it matters: This case highlighted how exaggerated or false health claims in food ads can mislead millions, and courts can intervene to protect public health.
Outcome: Ban lifted after re-testing, but the brand image suffered; it forced companies to ensure ad claims are scientifically backed.
CCPA v. Celebrities/Influencers (Various Cases, 2022-2024)
Authority: Central Consumer Protection Authority (CCPA)
What happened: Influencers and celebrities endorsed products without verifying the claims or disclosing that the content was paid promotion.
Why it matters: CCPA issued fines and warnings.
These cases are examples of how endorsers can be held liable for deceptive ads under the Consumer Protection Act, 2019 (Section 21).
Horlicks Ltd. V. Zydus Wellness Products Ltd. (2019)
Court: Delhi High Court
What happened: Horlicks sued Zydus for a comparative ad showing Horlicks as less effective than its product (Complain).
Why it matters: The court emphasized that even comparative ads must be truthful and not degrade competitors unfairly.
Outcome: Ad was restrained; the court reminded advertisers to use fair comparisons.
Procter & Gamble Home Products v. Hindustan Unilever Ltd. (2015)
Court: Delhi High Court
What happened: P&G challenged HUL’s comparative ad which showed HUL’s product in a better light using exaggerated test visuals.
Why it matters: The court ruled that visuals in ads must not mislead consumers, even in comparative marketing.
Outcome: Ad was taken down for creating false impressions.
Lenskart Case (ASCI Ruling, 2022)
Authority: Advertising Standards Council of India (ASCI)
What happened: Lenskart’s ad claimed “Buy 1 Get 1 Free,” but had hidden costs. ASCI found it misleading.
Why it matters: It proved that “free” offers must be genuine and transparent. Deceptive pricing can lead to regulatory action.
Conclusion
Misleading advertisements are not just a matter of unethical marketing-they are a serious threat to consumer rights, public trust, and honest competition. In today’s fast-paced digital world, where ads are no longer limited to print or television but flood social media, YouTube, and influencer pages, the line between genuine information and deceptive promotion has become dangerously thin. The Consumer Protection Act, 2019 marked a major legal shift by formally defining “misleading advertisements” and empowering the Central Consumer Protection Authority (CCPA) to take strict action. Celebrities, influencers, and companies can no longer hide behind vague claims or fine print. They are now legally obligated to verify facts before promoting any product or service.
However, enforcement still faces practical challenges. Digital content changes quickly, influencers often ignore disclosure rules, and companies continue to use surrogate methods to bypass advertising bans. The Advertising Standards Council of India (ASCI) issues guidelines, but being a self-regulatory body, its powers are limited unless backed by government enforcement. Despite these gaps, we’re moving in the right direction. High-profile cases like the Maggi noodles controversy, Dettol’s COVID claims, and recent influencer violations show that both authorities and consumers are increasingly alert. India’s approach is also becoming more aligned with international practices, such as the FTC in the U.S. and ASA in the U.K., who enforce strict transparency norms. For real change, legal action must go hand-in-hand with awareness. Consumers should be encouraged to question exaggerated ads. Influencers must act responsibly and disclose paid partnerships. And most importantly, companies should shift from manipulative marketing to honest branding built on trust.
In conclusion, laws alone cannot end deception. A strong consumer protection system needs strict regulation, public awareness, digital accountability, and ethical advertising practices. When businesses respect the law and consumers know their rights, the market becomes not only competitive-but fair, safe, and transparent for all.
FAQS
Q1. What is a misleading advertisement?
A: A misleading advertisement is one that gives false or exaggerated claims about a product or service. It can trick consumers into buying something based on wrong or incomplete information.
Q2. Are misleading ads illegal in India?
A: Yes. Under the Consumer Protection Act, 2019, misleading advertisements are prohibited. Companies, advertisers, and even celebrities can be held legally responsible.
Q3. Can influencers be punished for false promotions?
A: Absolutely. If an influencer promotes a product without checking the truth of its claims or without disclosing it’s a paid ad, they can face penalties and bans under the Act.
Q4. What role does the CCPA play in this?
A: The Central Consumer Protection Authority (CCPA) can investigate, fine, or even ban advertisements and endorsers who mislead consumers.
Q5. What are examples of misleading ads?
A: Ads that say a cream gives “instant fairness,” or a medicine “cures all diseases” without proof are misleading. Even saying “Buy 1 Get 1 Free” when the second product has hidden charges is deceptive.
Q6. Are there rules for social media ads too?
A: Yes. The Advertising Standards Council of India (ASCI) has special Influencer Guidelines that require clear labels like “Ad” or “Sponsored” on paid promotions.
Q7. How can a consumer complain about a misleading ad?
A: You can file a complaint with:
National Consumer Helpline (NCH): 1800-11-4000
Online: consumerhelpline.gov.in
Or directly with the CCPA
Q8. Is puffery (exaggeration) the same as deception?
A: Not always. Saying “the best coffee in the world” is puffery (opinion). But saying “clinically proven to cure cancer” without proof is deceptive and punishable.
