Govt issues new guidelines to curb misleading ads; bans surrogate ads

Violation will attract penalty of Rs 10 lakh for first offence and Rs 50 lakh for subsequent contravention

NEW DELHI: The government on Friday announced new guidelines to curb misleading advertisements and endorsers by banning surrogate ads, while imposing strict norms for those advertisements that seek to lure consumers offering discounts and free claims.

The new guidelines on “Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022” also seeks to regulate advertisements targeting children.

The guidelines, notified by the consumer affairs ministry and that have come into force with immediate effect, also specify due diligence to be carried out while endorsing in advertisements.

Action against violation of the new guidelines will be taken as per the provisions of the Consumer Protection Act (CPA), which provides for a penalty of Rs 10 lakh for first offence and Rs 50 lakh for subsequent contravention.

Announcing the guidelines, consumer affairs secretary Rohit Kumar Singh said: “Advertisements have great interest for consumers. Under the CCPA Act, there are provisions to handle misleading advertisements affecting consumers rights.

“But to make it more explicit, clear and aware to the industry, the government has come out with guidelines for fair advertising with effect from today,” he said.

The guidelines will be applicable to advertisements published on all platforms like print, television and online.

Stating that these guidelines will not bring change overnight, the secretary said, however, it gives a framework for the industry stakeholders to prevent misleading ads even by mistake and will also empower consumers and consumer organisations to file complaints against misleading ads.