Government issues new guidelines to curb ‘misleading ads’, Celebrity will also be fined; Know Details

The government issued new guidelines on Friday (June 10) to prevent misleading commercials and endorsers by prohibiting surrogate ads and implementing rigorous guidelines for advertisements that seek to entice customers with discounts and free claims. For giving wrong information related to health in an advertisement, along with the companies, strict action will be taken against the actor appearing in the ad.

Both parties may be fined up to 10 lakh rupees in the first instance. Additionally, people who create advertisements may be subject to a three-year ban. Advertisements will also be scrutinized, according to the Central Consumer Protection Authority’s recommendations, to check whether they are making misleading claims or fooling people.

The new “Prevention of Misleading Commercials and Endorsements for Misleading Advertisements, 2022” standards also aim to control advertisements directed towards minors.

The guidelines, which were announced by the consumer affairs ministry and took effect immediately, also state that proper care must be exercised before endorsing commercials.

What the consumer affairs secretary said-

“Advertisements have considerable interest for consumers,” consumer affairs secretary Rohit Kumar Singh said when announcing the guidelines. The CCPA Act has procedures for dealing with deceptive marketing that harm consumers’ rights.

“However, the government has issued rules for fair advertising with effect from today to make it more plain, obvious, and conscious to the business,” he said.

The restrictions will apply to all types of advertisements, including print, television, and the internet.

The secretary stated that while these guidelines will not bring about immediate change, they will provide a framework for industry stakeholders to prevent misleading ads even if they are made by mistake, as well as empower consumers and consumer organizations to file complaints against misleading ads.

These standards would also apply to government advertisements published by PSUs that provide consumer services, according to the secretary.

In addition, the Advertising Standards Council of India (ASCI) has issued self-regulatory advertising standards, which will be implemented in parallel manner.

Strict rules for Celebrities: 

For actors like Deepika Padukone to cricketers like Virat Kohli, everyone has either invested in or created their own product brands. Experts pointed out that as part of a contract, some start-ups grant celebrities ownership in exchange for endorsements. It also specifies that due diligence should be exercised while placing ads in the ads.

If a celebrity promotes a product or explains its advantages, he must first ensure that the benefit he is expressing is actually available. Similarly, if the celebrity owns stock in the firm that makes the product, it will be required to provide this information as well. Apart from that, commercials for children should not have a significant impact on their minds, due to their sensitivity and uncertainties.