In an era dominated by aggressive marketing and commercial competition, misleading advertisements are no longer mere ethical breaches—they are legal wrongs punishable under statutory and criminal law. This article provides an in-depth legal awareness guide for consumers, advocates, and students, shedding light on applicable laws, case precedents, and remedies under Indian jurisprudence.
Under Section 2(28) of the Consumer Protection Act, 2019, a misleading advertisement includes:
False or misleading descriptions of a product or service;
Deceptive guarantees or testimonials;
Misstatements regarding quality, quantity, or usage;
Concealment of material facts likely to affect consumer decisions.
Section 318(2) of the Bharatiya Nyaya Sanhita (BNS), 2023, further criminalizes misleading advertisements that endanger public safety or health.
Citation: CS(COMM) 607/2020, Delhi High Court
Facts: A challenge to an advertisement comparing fairness creams, alleging disparagement.
Held: The court held that comparative advertising is allowed but must not mislead or belittle rival products. Any such claim must be based on substantiated data and must avoid deceptive implications.
Central Consumer Protection Authority (CCPA): Empowers action under CPA 2019.
Advertising Standards Council of India (ASCI): Issues ethical guidelines and compliance directives.
FSSAI: Oversees misleading labels and food product promotions.
SEBI & RBI: Address misleading advertisements in financial and crypto markets.
In 2020, a formulation claimed to cure COVID-19, lacking scientific validation. The Ministry of AYUSH intervened, and CCPA initiated action under CPA and the Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954.
False promises of instant loans, hidden charges, and aggressive recovery practices have led to RBI advisories and criminal investigations.
Many platforms falsely promise guaranteed returns without legal backing. SEBI has initiated scrutiny and consumer advisories.
Mislabeling nutritional facts or exaggerating health benefits constitutes a regulatory offence under FSSAI Packaging and Labeling Regulations.
Sections 21 and 89 of CPA 2019 hold endorsers accountable for false claims. The BNS 2023, Section 318(2) extends criminal liability to those who endorse products resulting in public harm.
Responsibilities of Endorsers:
Independent verification of claims
Visible disclaimers where necessary
Avoidance of surrogate or proxy promotion
Legal Consequences:
Endorsement bans (up to 3 years)
Financial penalties
Criminal prosecution in cases of public risk
Year: 2022
Platform: Major e-commerce marketplace
Violation: Advertised a smartwatch with fake IP67 waterproof rating.
Action: CCPA ordered removal and imposed penalty under Section 21, CPA 2019.
| Forum/Authority | Relief Available |
|---|---|
| Consumer Commissions (District/State/National) | Monetary compensation, injunctive relief |
| Central Consumer Protection Authority | Takedown orders, penalties, endorsement bans |
| Civil Courts | Damages for economic loss or reputational injury |
| Criminal Courts under BNS 2023 | Prosecution, imprisonment up to 2 years, or fine |
Ask the following questions:
❓ Are the claims backed by verifiable evidence?
❓ Are disclaimers clearly visible and legible?
❓ Is any essential information concealed?
❓ Has the product obtained necessary approvals?
❓ Did the endorser conduct due diligence?
If these checks are not satisfied, the advertisement may qualify as legally misleading under Indian law.
Ignorance of the law benefits only the violator. A legally aware consumer not only protects themselves but contributes to a healthier market. Misleading advertisements affect not just purchasing decisions but also public health and trust in the legal system.
With the growing reach of digital platforms and influencer-based advertising, the importance of regulation and consumer vigilance cannot be overstated. Indian law now offers well-defined remedies to challenge and rectify misleading advertising practices. A combined understanding of the Consumer Protection Act, 2019, and the Bharatiya Nyaya Sanhita, 2023, ensures that every citizen has the tools to question and confront deceptive promotions.
✅ A misleading advertisement is one that falsely describes a product, gives a false guarantee, or is likely to mislead consumers about the product’s nature, substance, or quantity. Under Section 2(28) of the Consumer Protection Act, 2019, and now punishable under Section 354 of BNS, 2023, such acts are a prosecutable offense.
✅ Yes. The Consumer Protection Act, 2019, empowers the CCPA (Central Consumer Protection Authority) to take action against endorsers, especially if due diligence was not exercised before endorsement. Penalties include fines and prohibition of future endorsements.
✅ You can file complaints with:
CCPA (Central Consumer Protection Authority) under CPA 2019
ASCI (Advertising Standards Council of India) for self-regulatory action
District Consumer Disputes Redressal Commissions
And in serious cases, file an FIR under applicable sections of BNS
✅ Yes. Under Section 89 of the CPA 2019, and Section 354 of BNS, penalties can include:
₹10 lakh fine for first offense
Up to ₹50 lakh and 5 years imprisonment for repeated violations
Suspension or ban on the advertisement
Refund or compensation to affected consumers
✅ Comparative ads are allowed only if they are truthful, fair, and based on facts. If the comparison is deceptive, defamatory, or exaggerates benefits by maligning the competitor, it will fall under unfair trade practices and is punishable.
✅ Yes, with the introduction of Bharatiya Nyaya Sanhita, many white-collar offenses, including misleading advertisements with criminal intent, attract penal consequences, including imprisonment and fines, under Section 354.
📜 Disclaimer & Disclosure
This article is published solely for the purpose of legal awareness and general public education. It is not intended to solicit clients or advertise legal services in any manner, as prohibited by the Bar Council of India Rules.
The legal content presented here reflects general principles of Indian law (civil, criminal, consumer, or other), and may not apply to specific facts or jurisdictions. Every legal situation is unique and must be handled with full consideration of facts, documents, and the applicable laws.
We strongly advise readers to consult a qualified and experienced advocate for tailored legal advice before acting on any information provided in this blog.
Saurabh Savara, Advocate, practicing before the Punjab & Haryana High Court, and managing the website www.savaraadvocates.com, is committed to spreading legal literacy in India. However, neither he nor the website is liable for:
Your access or use of this information does not create an advocate-client relationship.
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