Introduction:

Advertisement and consumer behavior goes hand in hand and has become an integral part of our life today. In the current era of globalization advertisement plays a very vital role in embedding a strong brands name of the product or services dealing with. Generally, advertisement is the mode of communicating with the consumers to purchase their products and also to inform and remind the customers about their products and services. Therefore, the main purpose of Advertisements is to create an awareness among the consumers about the advertised product or services and to provide with the right information so that it helps them to make a choice of their own so that the consumer can purchase a product which is already well informed to them.

But the main concern is to wonder about is if we are getting what we paid for?

The ethical problem of the present business age which is disturbing and is also increasing is the false and misleading advertisements which is misleads the consumers as well as the injure competitors. The problem of deceptive advertisement is getting worse with the passing of time. The concept of advertisement which is been used in today’s business promotion includes class consciousness, complexion related ads, conspicuous consumption, materialism and other such relative factors which is not globally accepted by the consumers. This to look after the consumers confusion from the misleading advertisements and the strategies that are being used up by the major marketing agencies is what is concern to be discuss in today’s marketplace. The influence of advertisement on consumer choices is bonafide.

This kind of false and misleading advertisement and not only unethical but also not fair and truthful. It violates the basic rights of consumer, their choices and their safety.

Such as –

• Fair and Lovely Fairness Cream: This fairness cream claims that if any consumer uses this cream then the consumer will get a fair complexion within a month also they mention that one can build his career if one has a fair complexion, which is a misleading statement, for which judicial action can be taken.

• Red Bull: Here the advertising company claims that having a bottle of drink can give wings. For which this energy drink company was sued in 2014 for it slogan “Red Bull gives you wings” by paying a maximum amount of $13million.

• Duracell Battery: The very famous battery company Duracell Inc. and the Procter & Gamble Company was being issued by a US based customer who claim that this company delivered a false marketing and deceptive and misleading statements, in which the most powerful batteries was available at a higher rate than the regular batteries but it did not provide longer durability then the regular alkaline batteries.

Laws governing the Misleading advertisements:

There are various laws and regulation that prevents the false and deceptive advertisement emerging in the market. Which law has been passed by the legislation in order to protect the consumers from various forms of exploitation that is done by the marketing or the advertising agencies to promote their business brands. But the main concern is relating with the implementation of this laws, which is to be taken into consideration.

1. Laws having horizontal application on advertising:

• The Consumer Protection Act, 1986

• The Emblems and Names (Prevention of Improper Use) Act, 1950

• Trade and Merchandise Marks Act, 1958.

• Cable Television Networks (Regulation) Act, 1995

• Indecent Representation of Women (Prohibition) Act, 1986

• Monopolies and Restrictive Trade Practices Act, 1969

2. Laws having vertical application on advertising:

• Drugs and Cosmetics Act, 1940

• Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954

• Pre-natal Diagnostic Techniques (Regulation and Prevention of Misuse) Act, 1994

• Prevention of Food Adulteration Act, 1954/ Food Safety and Standards Act, 2005

• Prize Chits and Money Circulation Schemes (Banning) Act, 1978

• Prize Competition Act, 1955

• The Infant Milk Substitute, Feeding Bottles and Infant Foods (Regulation of Production, Supply and Distribution) Act, 1992 and Amendment Act, 2002

• Transplantation of Human Organs Act, 1994

• The Young Persons (Harmful Publications) Act, 1956

Some of the few important laws and regulation which is enacted for the protection and interest of the consumers are discussed below;

1. Drugs and Magic Remedies (Objectionable Advertisements) Act:

This act basically prohibits kinds of advertisements which are related to drugs and magical cures.

As per Section 3 of the mentioned act states that any person shall not take part in any publication of any advertisement which is promoting or leading the use of drugs;

(a) For procurement of miscarriage in women and for preventing conception in women.

(b) For maintaining or improving of the capacity of human being for sexual pleasure.

(c) For correcting menstrual disorders in women

As per Section 5 of the act which prohibits advertisement of those magic remedies which is used for the treatment of certain diseases elements or disorders. It also mentions that if any person violates this law, then the advertisers can be imprisoned for six months or fine or both.

Previously, AIDS/HIV was not mention in the schedule of the act. But with the span of time, the Union Ministry of Health included in the schedule now. It is to see the fact what prompted this move was Kerala High court order in 2002, against the manufacturer, sale and promotion of Ayurveda Drug Immuno QR they sure cure for AIDS. In response to a public interest litigation the Bombay High court has also restrained Mr Majid from making “tall and unfounded claims” about the drug.

2. The Cable Television Network Regulation Act and Rules:

This act was laid down so that all the advertisements which were transmitted through the cable TV network must be adhered to the Advertising Code formulated under it.

Section 6 of this Act states that any person shall not transmit or retransmit any advertisements through a cable service, unless such advertisement is uncertainty with the prescribed advertising code.

The Advertising Code must be drawn under the cable TV network rules 1994 which states that all advertisement must be in certainty to the relevant laws and it’s also should not suffer from any deficiency of services or defects in goods as it is mentioned in the consumer protection act 1986. This act also mentioned that no court should take any such consideration of any offence which is punishable under law under this act accept a complaint which is made in in written form by any authorised officer. This act gives the authority to the central government to regulate control and prevent transmission of such advertisements.

3. Food Safety and Standards Act, 2006:

Section 24 of this act states that,

• Any advertisement should not be made of any food all products which is misleading or deceiving all contradicts the provisions, rules and regulations of this Act,

• Any person shall not indulge himself in any unfair means of trade practice just for the promotion of the brand for promoting the sale supply consumption in use of the articles of food or adopt any unfair means of advertisements which can cause harm to the consumers or create confusion in the mind of the consumers, by making false representation of the food articles or any such factor relating thereto;

4. Drugs and Cosmetics Act,1940:

Rule 106 of the drugs and cosmetics rules 1945 is framed under this act in such a way which discusses about the diseases which a drug may not be able to prevent or cure;

• No drug make cream to prevented cure one or more of diseases or elements as it is specified in Schedule J on may convey to the intended use there of any idea that it may prevent or cure

• No drug main claim to assist appropriate miscarriage in women or may conveyed to the intending user there of any idea.

5. Cigarettes and other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003:

This law clearly restricts advertisements/ promotion of cigarettes and other tobacco products, which states;

As per Section 5 which states the prohibition of advertisements of cigarettes and other tobacco products where any person cannot be engaged in production supply and distribution of cigarettes any other tobacco products, and pulses should not indulge in advertising of those products which are harmful and cause danger to any individual’s life.

With all the claims that is found in the cigarettes packets states “Smoking is injurious to Health”, “Tobacco can cause Cancer”, any consumers can approach to the consumer courts for the legal help.

6. Consumer Protection Act:

As per Section 2(1)(r) Of the Consumer Protection Act which gives a clear vision and extensive definition of unfair trade practices.

As per Section 14 which deals with the procedures that the court provides to deal with the the unfair trade practices and the way to discontinue such advertisements which must not be repetitive in nature.

The consumer can also claim for compensation or damages for any loss that is being caused to them through such unfair trade practices. But the main factor of concern is that they can also direct those advertisers to issue some rectification measures for such advertisements.

The following Regulatory authorities have power to regulate advertising in their respective domain

• Insurance Regulatory Development Authority

• Telecom Regulatory Authority of India

• Securities and Exchange Board of India

• Reserve Bank of India

• Medical Council of India

Some of the misleading advertisements and their Regulators are discussed below:

1. Insurance Regulatory Development Authority

The IRDA REGULATIONS, 2000

This regulatory body lays down strict rules and guidelines, which not only restricts on the content of the advertisements issued by the intermediaries but also on the compliances relating to. Most importantly it also centralizers its power to direct issuance of using that corrective measures in regulating the advertisements in such a manner in which the original advertisements were initiated.

2. Telecom Regulatory Authority of India

This regulatory body ensures that there is a proper procedure for the telecom users are the consumers on the commercial communication as per their preferences. How to say it differently they do not want to registered any unwanted calls in the registry by mentioning “Do not Call Registry”.

3. Reserve Bank of India

Being the backbone of the financial system it acts as a regulator and supervisor for the cases of misleading advertisement. The RBI also accelerate its power to prohibit for the deceptive advertisement by the means of financial institutions. It also regulates the power to prohibit the issuance of the prospectus and soliciting the advertisement agencies.