Questions and Answers
Under which act can the penalty for subsequent violations reach up to 50 lakh rupees?
Cigarettes and Other Tobacco Products Act, 2003
What can the Authority prohibit an endorser from doing under the Cigarettes and Other Tobacco Products Act, 2003?
Making any endorsements for up to 1 year
Which act regulates drug advertisements?
Drugs and Cosmetics Act, 1940
What are the penalties for violations under the Drugs and Cosmetics Act, 1940?
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What is prohibited under the Prenatal Diagnostic Techniques (Regulation and Prevention of Misuse) Act, 1994?
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What is the purpose of the Food Safety and Standards (Advertisements & Claims) Regulations, 2018?
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Which authority is responsible for regulating food advertisements in India?
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What is the penalty for deceptive advertising under the Food Safety and Standards Act, 2006?
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Which act makes advertising harmful publications punishable?
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What type of advertisements are prohibited under the Prenatal Diagnostic Techniques (Regulation and Prevention of Misuse) Act, 1994?
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Study Notes
Regulating Misleading Advertisements in India
- The Supreme Court has issued directives to advertisers to submit self-declarations before promoting products in the media.
- Advertisers must declare that their advertisements do not deceive or make untrue statements about their products.
Key Directives from the Supreme Court
- Submission of self-declarations before promoting products in the media
- Advertisers must declare that their advertisements do not deceive or make untrue statements about their products
Consequences of Misleading Advertisements
- Lead to financial losses for consumers who purchase products or services based on false claims, resulting in dissatisfaction
- Harm consumers’ physical or mental well-being if the advertised products or services are potentially harmful or ineffective
- Erode trust in products, brands, and advertising, undermining the ethical principle of integrity in business and society
Regulation of Misleading Advertisements in India
- Definition of Misleading Advertisement: any advertisement that is misleading or deceptive under Section 2 (28) of the Consumer Protection Act, 2019
- The guidelines define “bait advertising”, “surrogate advertisement”, and “free claim advertisements”
- Provisions to protect children from exaggerated or unsubstantiated claims in advertisements
Penalties for Violations
- CCPA can impose penalties of up to 10 lakh rupees on manufacturers, advertisers, and endorsers for misleading advertisements
- For subsequent violations, the penalty can be up to 50 lakh rupees
- The Authority can also prohibit the endorser of a misleading advertisement from making any endorsements for up to 1 year, and for subsequent violations, the prohibition can extend up to 3 years
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