After the Central Consumer Protection Authority (CCPA) issued notices against misleading advertisements by companies, 13 entities have withdrawn misleading advertisements and 3 companies agreed to the corrective advertisement. CCPA has also imposed penalties on 3 companies for their misleading advertisements.
Under the provisions of the Consumer Protection Act, 2019, CCPA has been established w.e.f 24.07.2020 to regulate matters, relating to false or misleading advertisements which are prejudicial to the interests of the public and consumers as a class. The CCPA can issue directions to the concerned trader or manufacturer or endorser or advertiser or publisher, as the case may be, to discontinue such advertisement or to modify the same.
CCPA has recently issued two Safety Notices to alert and make consumers cautious against buying household goods that do not conform to BIS standards. An advisory has also been issued to industry associations highlighting the provisions of the Consumer Protection Act. The CCPA has advised the respective associations to inform their members to cease making false claims.
The Consumer Protection Act, 2019 also provides for the imposition of penalty by the CCPA on a manufacturer or endorser or publisher and imprisonment and penalty by a competent court on any manufacturer or service provider, who is found responsible for a false or misleading advertisement. Appropriate action is taken in cases where Advertising Code is found to be violated.
