Govt Will Impose Rs 50 Lakh Penalty For Misleading, Fake Advertisements On Print, Digital, Television

In a bid to keep a check on advertisements misleading consumers, especially the younger audiences, the government has decided to address the issue and bring down all such incomplete and fake advertisements by putting a ban on surrogate ads.

Surrogate advertisements are a form of advertising that promotes regulated products, like alcohol and cigarettes in the disguise of another product, in order to hammer the brand name into the consumers’ minds.

To do so, the consumer affairs ministry, Government of India, has issued new guidelines on ‘Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022’, which seeks to regulate advertisements targeting younger audiences and children.

Govt to Ban Misleading Ads, Penalty to Be Charged

The consumer affairs ministry has issued new guidelines on regulation and curbing of misleading advertisements and on those endorsing surrogate ads.

Advertisements luring consumers by offering discounts and free claims of dubious nature will also come under the government’s radar.

The ministry has under immediate effect brought this action of misleading advertisement regulation, while specifying due diligence to be carried out endorsements in ads.

It has also issued the ‘Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022’, which seeks to do the same (regulating ads) for children and younger audiences.

It must be noted that the guidelines will be applicable to all forms of advertisements, including platforms like print, television and online media.

“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,” stated the consumer affairs secretary Rohit Kumar Singh on Friday.

Besides, anyone violating these new guidelines will have to pay a penalty of Rs 10 lakh as first offence and Rs 50 lakh for subsequent contravention, under the provisions of the Consumer Protection Act (CPA).