The Impact and Regulation of Advertising in India

Advertising is a crucial communication tool used to persuade prospective buyers. Its primary role is to influence consumers to purchase a particular product. The purpose of advertising is multifaceted: it aims to inform consumers about products, convince them of the superiority of a company’s offerings, enhance the company’s image, create a need for products or services, demonstrate new uses for established products, and announce new products and programs.

The Problem of False Advertising

False advertising significantly impacts consumer behaviour by providing overly positive information that can lead to negative customer experiences. Misleading advertisements are especially detrimental to children in India, affecting their consumer behaviour, health, and social interactions. Addressing these impacts requires a comprehensive approach, including stricter regulations, enhanced parental guidance, and more responsible advertising practices. By working together, stakeholders can help mitigate these adverse effects and promote healthier, more informed choices among children.

Exaggeration and Overstatement in Advertising

Misleading or deceptive conduct occurs when businesses make claims that create a false impression regarding the price, value, or quality of goods or services. Puffery, or exaggeration, involves harmless superlatives or overstated statements to attract buyers or enhance a product’s image. These claims are generally personal opinions, not fact-based, and cannot be verified. While often legal, puffery is sometimes considered unethical. For instance, the statement “Red Bull gives you wings” is an example of exaggerated advertising that no reasonable person would believe to be true. In 1997, Hindustan Lever Company had to stop their campaign claiming their toothpaste was “102 per cent better” than Colgate due to its misleading nature.

Consumer Protection

The Consumer Protection Act, of 2019, was enacted to provide better consumer protection. However, services rendered by lawyers or advocates are not covered under this Act, even though they provide professional services. Consumer protection policies, laws, and regulations help increase consumer welfare by holding businesses accountable. The Act empowers the Central Government to establish the Central Consumer Protection Authority (CCPA), which regulates matters related to consumer rights violations, unfair trade practices, and false or misleading advertisements. The CCPA can impose penalties and even imprisonment for false or deceptive advertisements, to safeguard consumer rights through timely and effective dispute resolution.

Issues of Misleading Ads in India

Misleading advertisements in India involve exaggerated claims, false information, and the omission of crucial details, leading to financial losses, health risks, and erosion of consumer trust. The Consumer Protection Act, 2019, and the Advertising Standards Council of India (ASCI) provide a regulatory framework, but enforcement challenges and the rise of digital ads persist. Addressing these issues requires stricter regulations, better consumer education, and collaborative efforts among stakeholders.

The Role of Surrogate Advertising

Surrogate advertising promotes goods through advertisements for other goods or services, often skirting legal boundaries. This practice impacts economic activities, cultural norms, regulatory frameworks, and consumer behaviour. Despite regulations, surrogate advertising exploits loopholes, making it difficult for authorities to enforce bans effectively.

Consumer Awareness and Protection

False or misleading advertising damages consumer trust, reduces brand loyalty and exposes businesses to legal and ethical risks. Penalties for violating guidelines are clearly outlined: the CCPA can impose fines and prohibit endorsements for misleading advertisements. ASCI, a voluntary self-regulatory organization, ensures advertisements are legal, decent, honest, and not harmful. It monitors media for misleading claims and processes violations as suo motu complaints.

Consumers should limit their exposure to advertising and be mindful of manipulative marketing stimuli. Public awareness campaigns, such as “Jago Grahak Jago,” educate consumers about their rights and responsibilities. Other initiatives include the National Consumer Helpline (NCH), the Grahak Kalyan Portal, and school consumer clubs.

Conclusion

Misleading advertisements are prevalent in Indian society, causing financial loss and health risks to consumers. Although regulations exist to curb these practices, enforcement remains a challenge. Increased awareness and stringent penalties are essential to protect consumers and maintain market integrity. By fostering a collaborative effort among stakeholders, it is possible to promote responsible advertising and healthier consumer choices.

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