Misleading advertisements and Issues related to it
Kartavya Desk Staff
#### GS Paper 4
Syllabus: Application of Ethics
Context: The Supreme Court has urged the government to take action against Fast Moving Consumer Goods (FMCG) companies for using misleading advertisements, especially those targeting families with babies and schoolchildren.
In another case, the Supreme Court criticized the Union government for its inaction against Patanjali Ayurved over misleading advertisements and ordered the company’s MD Acharya Balakrishna and co-founder Yoga guru Ramdev to submit their public apology published in newspapers.
Concerns were raised amid reports of higher sugar content in Nestle’s baby food products.
What are Misleading Advertisements?
Misleading advertisements are promotional messages or claims that deceive or mislead consumers about the characteristics, benefits, or efficacy of a product or service. These ads may contain false or exaggerated information, leading consumers to make purchasing decisions based on inaccurate perceptions
Examples of misleading advertisements:
Company | Misleading Claim
Detox Tea Co. | “Lose 10 lbs in 7 days with our tea”
Beauty Products Inc. | “Eliminates wrinkles in one day”
Bourn Vita | “Our drink is low in sugar” (when it contains high sugar content)
Fresh Teeth Inc. | “Whitens teeth 10 shades in one use”
Hair Care Co. | “Regrows hair in 2 weeks”
Social Networking Inc. | “100% safe and secure”
Impact of misleading advertisement:
Impact | Examples
Loss of Customer Trust | Volkswagen used deceptive advertising to market their diesel cars as environmentally friendly, causing damage to the environment and a loss of trust in the company by customers.
Negative Brand Image | PepsiCo’s advertising campaign for Aquafina bottled water, which claimed the water was “pure, perfect and refreshing,” was misleading because the water was sourced from tap water.
Legal Consequences | L’Oreal was sued by the Federal Trade Commission (USA) for advertising that their anti-ageing creams could mimic the effects of a surgical facelift.
Health Impact | For example, sugary drinks such as soda are associated with many health problems.
Ethical impact | Unfair Competition, Breach of Trust, Deception and Manipulation
Legal provisions against misleading advertisements:
Legal Provisions | Description
CCPA’s Guidelines to Prevent False or Misleading Advertisements | Issued in 2022, these guidelines cover goods, products, and services, and aim to prevent false or misleading advertising.
Food Safety and Standards Regulations, 2018 | Specifically deals with food (and related products), and regulates product claims, while the above guidelines deal with goods, products and services.
Cable Television Network Rules, 1994 | Advertisements must not draw inferences that it has “some special or miraculous or supernatural property or quality, which is difficult to prove.
FSS Act 2006 | Misleading ads are punishable under Section 53 of the Food Safety and Standards Act, 2006.
Consumer Welfare Fund | Set up under the Central Goods and Services Tax (CGST) Act, 2017, this fund promotes and protects the welfare of consumers.
Central Consumer Protection Council | Monitors and enforces consumer protection laws facilitates consumer education, and provides consumer redressal mechanisms.
Consumer Protection (E-Commerce) Rules, 2020 | These mandatory rules require sellers to take back defective or deficient goods, withdraw services, or provide refunds if goods or services do not meet the description on the platform.
Advertising Standards Council of India (ASCI) | A self-regulatory organization that monitors ads and deals with complaints against them in India.
| The Advertising Standards Council of India (ASCI) had previously released guidelines on dark patterns in digital advertisements, urging companies not to mislead customers through omission, exaggeration, implication, or ambiguity.
Thinker’s view on Misleading Advertisements:
Ethical Thinker | Views
Mahatma Gandhi | Misleading people is a violation of truthfulness and honesty.
Chanakya | Emphasized the importance of ethical conduct in business and the detrimental effects of deceptive practices.
Swami Vivekananda | Advocated for truth and integrity, promoting the welfare of society.
Immanuel Kant | Misleading people violate the principle of treating individuals as ends in themselves, rather than means to an end.
Insta Links
• Regulating misleading advertisements
Mains Links
Do you think that the brand ambassadors of products should be held accountable for misleading advertisements and endorsements? Examine. (250 Words)
Prelims Links
Consider the following statements: (UPSC 2018)
• The Food Safety and Standards Act, 2006 replaced the Prevention of Food Adulteration Act, 1954.
• The Food Safety and Standards Authority of India (FSSAI) is under the charge of the Director General of Health Services in the Union Ministry of Health and Family Welfare.
Which of the statements given above is/are correct?
(a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2
Answer: A