Regulations Against Misleading Practices And Advertisement: Fill & Download for Free

CONSTITUTION OF INDIA: The Supreme Court of India in Tata Press Ltd. v. Mahanagar Telephone Nigam Ltd. (1995) 5 SCC 139. held advertisements to be commercial free speech subject to certain reasonable restrictions (Article 19(1).THE CONSUMER PROTECTION ACT, 1986The consumer protection act, 1986 under section 2 (1)(r) describes unfair trade practices, which specifically under sub-sections 2 (1)(r) cl. vi and 2 (1) (r) cl. ix include the acts which can be called as misleading advertisements and claims. Section 2 (1)(r) cl. vi describes any act(s) aimed at making a false or misleading representation concerning the need for, or the usefulness of, any goods or services as one of the restrictive trade practices. Further Section 2 (1)(r)ix prohibits any act that materially misleads the public concerning the price at which a product or like products or goods or services, have been or are, ordinarily sold or provided, and, for this purpose, are presentation as to price shall be deemed to refer to the price at which the product or goods or services has or have been sold by sellers or provided by suppliers generally in the relevant market unless it is clearly the price at which the product has been sold or services have been provided by the person by whom or on whose behalf the representation is made. Section 2 (1)(r) x prohibits any misleading claims and advertisements aimed at disparaging goods, services and trade of another person.THE TRADEMARKS ACT, 1999.A coherent depiction of the manipulative advertising can be found in the Trademarks act, 1999. Section 2(1) Clause (i) of the Trademarks act, 1999 define False Trade deceptions. False and misleading advertisements may also attract regulatory measures provided in the Trade Marks Act, 1999. As provided in Section 103 of the Act, any person who(1) falsifies any trademark or(2) falsely applies to goods or services any trademark, or(3) applies any false trade description to goods or services, shall be punishable with imprisonment and fine.Moreover, under Section 107 of that Act, making of false representation of a trademark as registered shall be an offence, punishable with imprisonment and/or fine.THE DRUGS AND MAGIC REMEDIES (OBJECTIONABLE ADVERTISEMENTS) ACT, 1954This act Specifies two kinds of offences: advertising of drugs and diseases specified in the act, or rules and advertisements that are misleading about the nature, cure and any other material particular of the drug so advertised.While Section 3 of the act prohibits advertisements of certain drugs for treatment of certain diseases and disorders, Section 4 prohibits misleading advertisement relating to drugs. Section 4 which is exceptionally significant to the concept of misleading advertisements states Subject to the provisions of this Act, no person shall take any part in the publication of any advertisement relating to a drug if the advertisement contains any matter which Directly or indirectly gives a false impression regarding the true character of the drug; or Makes a false claim for the drug; or Is otherwise false or misleading in any material particulars.SECURITIES AND EXCHANGE BOARD OF INDIA REGULATIONS, 2003The Securities and Exchange Board of India (Prohibition of fraudulent and unfair trade practices relating to securities market) Regulations, 2003 under Section 4(2) Clauses (a), (k) & (r) prohibits misleading and manipulative advertisement. The said clauses prohibit the following:-Indulging in an act which creates false or misleading appearance of trading in the securities market;An advertisement that is misleading or that contains information in a distorted manner and which may influence the decision of the investors;Planting false or misleading news which may induce sale or purchase of Securities.THE IRDA (INSURANCE ADVERTISEMENTS) REGULATIONS, 2000The IRDA (Insurance Advertisements) Regulations, 2000, seeks to regulate and control every insurance advertisement issued by the insurer, intermediary or insurance agent. For this purpose, every insurer, intermediary or insurance agent is required to establish and maintain a system of control over the content, form and method of dissemination of all advertisements concerning its policies and such advertisement should be filed with the Authority as soon as it is first issued. An advertisement issued by an insurer should not fall in the category of an unfair or misleading advertisement. A precise definition of the unfair or misleading advertisement is given under section 2(d).Existing Arrangements in India on advertised claims and Standards:There are a number of legislations that have provisions to deal with misleading claims and advertisements made by companies regarding their products which include, inter alia,o The Drugs and Cosmetics Act, 1940 (Department of Health and Family Welfare)o The Drugs and Magic Remedies (Objectionable Advertisements) Act, 1955 (Department of Health and Family Welfare)o Food Safety and Standards Act, 2006 (Department of Health and Family Welfare)o The Cigarettes and other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003 (Department of Health and Family Welfare).o Over and above, the Advertisements aired on private satellite TV channels are regulated under the Advertising Code prescribed in rules framed under Cable Television Network (Regulation) Acts 1995.o The misleading Advertisements in print media, which are violative of ‘Norms of Journalistic Conducts” are being adjudicated by the Press council of India under Section 14 of the Press council Act 1978.o The Food Safety and Standards Authority also provides for penal action against misleading advertisement pertaining to food products.o The Advertising Standards Council of India, it is voluntary organization of Advertisers for making standards and self-regulation on them by advertisers

Hi Pritesh,In India, there are mechanisms for regulating advertisement which are both in the nature of self regulation and regulation by statutory rules and regulations. However, to a large extent advertisement regulation in print and electronic media is in the realm of self regulation.There are certain laws that governs advertising in India. Apart from the to ensure consumer’s right to know about a product/service they are purchasing, there’s a self regulatory voluntary organisation of the Indian advertising industry - Advertising Standard Council of India (ASCI). The ASCI has drawn up a code for self regulation in the advertising industry with a purported view to accomplish the acceptance of truthful advertising practices in the best interests of the ultimate consumer. The council also lays down similar codes for advertisements in specific sectors/industries from time to time.However, the codes are self-imposed discipline to be followed by those involved in the industry and in no way are the codes mandatory. Thus, there are a lot of brands who choose not to follow them at all. In such cases, anyone (general public including government officials, consumer groups) who considers them to be false, misleading, offensive, or unfair can file a complain against them.So first of all someone must file a complain against them. The government is planning to soon come out with a new consumer protection law and strict punishment will be meted out to entities which put out misleading advertisements.

Pretty much all billion dollar companies get sued. The bigger & more successful the company is, the more lawsuits it deals with.But yes, Amway has been sure numerous times in its past. The last big one they paid out $56M for the misleading practices of many of its top leaders. Not because they “lost” (as far as I know they didn’t actually lose) but they fely like a big reform was needed. Thus, Amway Global was reborn.Nowadays, Amway is a bulldog with its compliance regulations. Going after IBOs for practices that go against their rules… like promoting on social media in an advertising manner or selling on Amazon or eBay.Hell… I got kicked out for joining Isagenix, not to sell but to lose weight!