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What Is Misleading Advertisement And What Legal Action Can Be Taken On Such Misleading Advertisements

  • Writer: Mehtab Ali
    Mehtab Ali
  • Jan 14
  • 4 min read

A Misleading Advertisement Misleads People, Alters Reality, Or Impacts Consumer Purchasing Behavior. Most Governments Prohibit The Use Of Deceptive Or Misleading Advertising. It Is Prohibited To Falsify The Quality Of Any Product Or Its Specifications, Such As Its Composition, Production, Price, Or Location Of Origin. The Term "False" Refers To The Misrepresentation Of Facts; Misleading Information Can Lead To An Unacceptable Amount Of Individuals Making Incorrect Decisions, However, Consumers Are Susceptible To Advertising When Provided With A Unique Setting.


Legal Action On Misleading Advertisement

Misleading Advertising Can Include


  • Exaggeration And Overstatement.

  • Expressing Exaggerated Product Qualities And Using Professional Concepts For Maximum Impact.

  • Fake Licence

  • False Warranty

  • Using Cinematic Techniques And Deceptive Imagery

  • Discounts And Gifts:


Legal Provisions:


  • Section 2(1)(R) Of The Consumer Protection Act Of 1986 Defines "Unfair Trade Practices." Unfair Trade Practice Is Defined As Any Trade Practice That Uses Any Unfair Method Or Unfair Or Deceptive Practice, Including False And Deceptive Practices, To Promote The Sale, Usage, Or Supply Of Any Goods Or To Provide Any Service. Section 14 H (C) Of The Act, Which Describes The Court's Powers, States That The Court Can Order "Corrective Advertisement To Neutralize The Effect Of Misleading Advertisement At The Cost Of The Opposing Party Accountable For Producing Such Deceptive Advertisement." In Terms Of Deceptive Marketing, This Is The Most Essential Clause And Can Serve As A Deterrent. Unfortunately, This Clause Is Not Being Used To Effectively Combat Misleading Advertising.

  • Other Such Protection Acts Are Monopolies And Restrictive Trade Practices Act 1969; The Main Objective Of The Mrtp Act Is To Ensure That The Operation Of The Economic System Does Not Result In The Concentration Of Economic Powers In The Hands Of A Few Hands; However, The 1984 Amendments To The Mrtp Act Incorporated, Inter Alia, New Provisions For The Regulation Of Unfair Trade Practices E.G.,  False Representations, Misleading Advertisements, Bargain Sales, Bait And Switch Selling, Hoarding And Destruction Of Goods Etc.

  • To Defend Consumer Rights Against Broader Advertising Challenges, The Ccpa Issued The Guidelines On Prevention Of Misleading Advertisements And Endorsements For Misleading Advertisements, 2022, Which Went Into Immediate Effect. The Guidelines Strengthen Consumer Rights By Establishing Clear And Mandatory Requirements For Legitimate, Non-Misleading Marketing, As Well As Free Claims Advertisements. Furthermore, The Guidelines Recognize And Authorize Bait Advertisements Under Certain Conditions, As Well As Give Necessary Standards For Disclaimers In Advertisements, Advertisement Endorsements, And Disclosure Of The Connection Between Endorser And Merchant.


Legal Action On Misleading Advertisement:


  • Injunctive Relief: The Courts Award Injunctive Relief When Two Prerequisites Are Met. First, A Plaintiff Must Prove A "Likelihood Of Deception Or Confusion On The Part Of The Buying Public Caused By A Product's False Or Misleading Description Or Advertising" (Alpo). Second, A Plaintiff Must Show That "Irreparable Harm" Was Caused, Even If The Harm Involves A Decline In Sales That Cannot Be Entirely Traced To A Defendant's Deceptive Advertising.

  • Corrective Advertising: Corrective Advertising Can Be Judged In Two Ways. First, And Most Typically, The Court Can Order A Defendant To Establish A Corrective Advertising Campaign And Make An Affirmative, Correcting Statement During That Campaign. Second, The Courts Have The Authority To Award The Plaintiff Monetary Damages So That The Plaintiff Can Launch A Corrected Advertising Campaign In Response To The Defendant's Deceptive Marketing.


Case Laws:


  • M.R. Ramesh Vs. Prakash Moped House: In This Instance, The National Consumer Disputes Redressal Commission (Ncdrc) Ruled That Concealing Critical Information In Small Print Constitutes Unfair Trading Practices. The Ncdrc Demonstrated That It Will Not Tolerate Such Abuses Of Consumers' Right To Information By Awarding Hefty Compensation To The Consumer Who Was Misled By Deceptive Advertising. In This Case, The Ncdrc Determined That Ads By Manufacturers And Service Providers Should Not Mislead And Should Present An Accurate Image Of The Quality Of The Goods Sold.

  • Buddhist Mission Dental College And Hospital V. Bhupesh Khurana: The National Commission Found The Dental College Guilty Of Unfair Trade Practice Because Its Advertisement Gave The Misleading Impression That It Was Affiliated With A University And Recognized By The Dental Council Of India. However, Both Were False. Because The College Was Not Recognized, No Examination Was Given At The End Of The School Year, Prompting Students To Initiate A Class Action Lawsuit In The Consumer Courts. Subsequently, In The Following Case, The Supreme Court Observed That The Institute Had Played With The Students' Careers And Virtually Ruined Them, Resulting In The Loss Of Two Academic Years. The Supreme Court Ordered The Institute To Pay An Additional Compensation Of Inr 1 Lakh To Each Of The Students (Complainants), As Well As Inr 1 Lakh In Litigation Costs To Each Of Them.


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