1. Advertising is the foot on the
accelerator, the hand on the throttle,
the spur on the flank that keeps our
economy surging forward” - Robert
W. Sarnoff

2. Advertising
Advertising is any paid form of non-personal
presentation and promotion of ideas, goods,
or services by an identified sponsor. In
today's fast-paced, high-tech age businesses
use advertising to make prospects aware of
their products and services and to earn
profits through increasing their sales and
sales turnover. Advertising reflects
contemporary society.

3. DECEPTIVE ADVERTISING
•False advertising or deceptive advertising is the
use of false or misleading statements in advertising.
•Deception exists when an advertisement is
introduced into the perceptual process of the
audience in such a way that the output of that
perceptual process differs from the reality of the
situation.
•As advertising has the potential to persuade people
into commercial transactions that they might
otherwise avoid, many governments around the
world use regulations to control false, deceptive or
misleading advertising.

4. WHEN IS ADVERTISING
DECEPTIVE:
An advertisement is called deceptive when it misleads
people, alters the reality and affects buying behavior.
According to Federal Trade Commission (USA)
deception occurs when –
•There is misrepresentation, omission, or a practice that
is likely to mislead.
•The consumer is acting responsibly in given
circumstances
•The practice is material and consumer injury is
possible because consumers are likely to have chosen
differently if there is no deception.

5. DECEPTIVE ADVERTISING
These may include the following:
1. VIOLATES CONSUMERS' RIGHT TO
INFORMATION
2. VIOLATES CONSUMERS' RIGHT TO SAFETY
3. VIOLATES CONSUMERS' RIGHT TO CHOICE
4. ADVERTISEMENTS DIRECTED AT CHILDREN
5. PUFFERY
6. USE OF SEX APPEALS
7. BAIT ADVERTISING
8. ADVERTISING OF HARMFUL PRODUCTS

6. LEGAL ASPECTS OF
ADVERTISING
Legal aspects of advertising can be divided
into:
• Self-regulation by the industry
•Regulation by the Government

7. SELF-REGULATION BY THE
ADVERTISING INDUSTRY
With the increasing criticism of advertising, advertisers
have devised self-regulation to ensure true and accurate
messages. A number of agencies are involved. These
can be classified into the following:
Advertising trade associations:
o Advertising Standards Council of India (ASCI)
o Advertising Association of India (AAAI)
o Press Council of India
o Prasar Bharti

8. Individual media and media groups
o Code for commercial advertising on Doordarshan
o All India Radio Code for commercial advertising

9. REGULATIONS BY THE
GOVERNMENT
The rules, regulations and legislations include the
following:-
Advertising Standards Council of India (ASCI)
1. Constitution of India
2. Consumer Protection Act, 1986
3. Information Technology Act, 2000
4. Indian Penal Code, 1860
5. The Young Persons (Harmful Publications) Act, 1956
6. Indecent Representation of Women (Prohibition) Act,
1986

10. 7. The Cigarettes and other Tobacco Products
(Prohibition of Advertisement and Regulation of
Trade and Commerce, Production, Supply and
Distribution) Act,
8.The Drugs and Magic Remedies (Objectionable
Advertisements) Act, 1955
9. The Drugs and Cosmetics Act, 1940
10.The Emblems and Names (Prevention of Improper
Use) Act, 1950
11.Cable Television Networks (Regulation) Act, 1995
12.Securities and Exchange Board of India (SEBI) (Stock-
brokers and Sub-brokers) Rules, 1992 - Code of
Conduct for Stock-brokers

11. 13.Securities and Exchange Board of India (SEBI)
(Prohibition of Fraudulent and Unfair Trade
Practices relating to Securities Market)
Regulations, 1995
14.Securities and Exchange Board of India (SEBI)
(Mutual Funds Regulation), 1996: SEBI Guidelines
for Advertisements by Mutual Funds
15.Securities and Exchange Board of India (SEBI)
(Disclosure and Investor Protection Guidelines),
2000
16..The Prenatal Diagnostic Techniques (Regulation
and Prevention of Misuse) Act, 1994
17..The Transplantation of Human Organs Act, 1994

12. 18.The Representation of the People
(Amendment) Act, 1996
19..The Monopolies and Restrictive Trade Practice
act, 1969
20.The Lotteries (Regulation) Act, 1998
21.The Infant Milk Substitutes, Feeding Bottles
and Infant Foods (Regulation of Production,
Supply and Distribution) Act, 1992
22.The Competition Act, 2002
23.The Contract Act, 1872
24.The Civil Defense Act, 1968

13. ADVERTISING STANDARDS COUNCIL
OF INDIA (ASCI)
• To scrutinize certain principles and fairness in the
sphere of advertising, Advertising Standards Council
of India was established in India in 1985. ASCI deal
with complaints received from consumers and
industry against such advertisements which are false,
misleading, indecent, illegal, leading to unsafe
practices or unfair to competition and are in
contravention to the advertising code. Even though
there is no as such provision for regulating
advertisement policy in the Constitution of India,
which should be adopted by press or media, the
Supreme Court has given guidelines for the same
through a series of decisions.

14. CONSUMER PROTECTION ACT,
1986
Consumer Protection Act, 1986 provides better
protection of the
interests of consumers and to make provision for
the establishment of
consumer councils and other authorities for the
settlement of
consum-ers' disputes and for matters connected to
it, including
protection against unfair trade practices.

15. INFORMATION TECHNOLOGY
ACT, 2000
• India is one of the very few countries in the world
besides Singapore to have legislated Cyber laws. The
IT Act specifically empowers that anyone who
publishes in the electronic form, any material which is
lascivious or which tends to degrade persons who are
likely to read, see or hear the matter contained or
embodied in it, shall be punishable with imprisonment
and fine. Even there is a provision in the IT Act, which
applies to any offence by which any person shall be
punished irrespective of his/her nationality if the act
constituting the offence involves a computer, computer
system or computer network located in India.

16. INDIAN PENAL CODE, 1860
• As per the provisions of Indian Penal Code,
1860 certain advertisements are considered as
criminal offences. It is dealt under different
provisions of the Code.

17. THE YOUNG PERSONS
(HARMFUL PUBLICATIONS) ACT,
1956
• The Young Persons (Harmful Publications) Act, 1956
prevents the dissemination of certain publications
harmful to young persons. To be more précised harmful
publication indicates such publications which would tend
to corrupt a young person whether by inciting or
encouraging him to commit offences. The Act also
proclaims that whoever advertises or makes known by
any means that any harmful publication can be procured
from or through any person, and then he shall be
punished with imprisonment or with fine, or with both.

18. INDECENT REPRESENTATION
OF WOMEN (PROHIBITION) ACT,
1986
• Indecent Representation of Women (Prohibition)
Act, 1986 prohibits indecent representation of
women through advertisements or in
publications, writings, paintings, figures or in any
other manner and for matters connected
therewith or incidental thereto.

19. THE CIGARETTES AND OTHER
TOBACCO PRODUCTS (PROHIBITION
OF ADVERTISEMENT AND
REGULATION OF TRADE AND
COMMERCE, PRODUCTION, SUPPLY
AND DISTRIBUTION) ACT, 2003 AND
THE CIGARETTES (REGULATION OF
PRODUCTION, SUPPLY AND
DISTRIBUTION) ACT, 1975

20. The Cigarettes and other Tobacco Products (Prohibition
of Advertisement and Regulation of Trade and
Commerce, Production, Supply and Distribution) Act,
2003 and the Cigarettes (Regulation of Production,
Supply and Distribution) Act, 1975, states that no
person shall advertise for the distribution, sale or supply
of cigarettes, and also shall not take part in the
publication of such advertisement, unless the specified
warning is included in such advertisement.

21. THE DRUGS AND MAGIC
REMEDIES (OBJECTIONABLE
ADVERTISEMENTS) ACT, 1954
• The Drugs and Magic Remedies (Objectionable
Advertisements) Act, 1954 (DMRA) controls the
advertisement of such drugs which is said to
provide magical remedies and to deal with other
matters relating to it.

22. THE DRUGS AND COSMETICS
ACT, 1940
• As per the Drugs and Cosmetics Act, 1940 (DCA), no
person shall himself or by any other person on his
behalf offer for sale any drug or cosmetic which is not
of a standard quality, or is misbranded, adulterated or
spurious. The Act gives similar restrictions to
advertisements for traditional drugs such as Ayurvedic,
Siddha and Unani. The Emblems and Names
(Prevention of Improper Use) Act, 1950 is enacted to
prevent the improper use of certain emblems and
names, for professional and commercial purposes.

23. CABLE TELEVISION NETWORKS
(REGULATION) ACT, 1995
• This law lays down the procedure for registration
of a cable television network and also regulates
the programmes and advertisements transmitted
on cable network in India. The registering
authority is the Head Post Master of a Head
Post Office of the area within whose territorial
jurisdiction the office of the cable operator is
situated.

24. SECURITIES AND EXCHANGE
BOARD OF INDIA (SEBI)
• In the exercise of the powers conferred by section 30
of the Securities and Exchange Board of India (SEBI)
Act, 1992, the Board makes the regulations on the
code of conduct for Stock-brokers to be known as
SEBI Stock-brokers and Sub-brokers Rules in 1992.
The provisions of the Rules specified that a stock-
broker or sub-broker is prohibited from advertising
his business publicly unless permitted by the stock
exchange, including in their internet sites, by its
subsidiaries, group companies etc.

25. THE PRENATAL DIAGNOSTIC
TECHNIQUES (REGULATION
AND PREVENTION OF MISUSE)
ACT, 1994
• The Prenatal Diagnostic Techniques (Regulation
and Prevention of Misuse) Act, 1994, contains
provision which prohibits advertisements relating
to predetermination of sex. The Act provides for
the prohibition of advertisements of any kind for
anybody or person pertaining to facilities for pre-
natal diagnosis of sex available at any center or
place.

26. THE TRANSPLANTATION OF
HUMAN ORGANS ACT, 1994
• The Transplantation of Human Organs Act, 1994
provides for the regulation of removal, storage
and transplantation of human organs for
therapeutic purposes and for the prevention of
commercial dealings in human organs and for
matters relating to it and provisions are there for
the punishment for commercial dealings in
human organs.

27. THE REPRESENTATION OF THE
PEOPLE (AMENDMENT) ACT,
1951
• While detailing the provisions of the
Representation of the People (Amendment) Act,
1951 (RPA), the statute even provides penalty
for anyone including the advertisers who
contravene the above provision with
imprisonment or fine or with both.

28. THE LOTTERIES (REGULATION)
ACT, 1998
• The Lotteries (Regulation) Act, 1998, it is seen that a
State Government has the discretionary powers to
organize, conduct or promote a lottery, including
advertising thereof subject to some conditions
specified in the Statute. It is also provided that the
State Government may prohibit within itself the sale
of tickets of a lottery organized, conducted or
promoted by every other state;

29. THE INFANT MILK
SUBSTITUTES, FEEDING
BOTTLES AND INFANT FOODS
(REGULATION OF PRODUCTION,
SUPPLY AND DISTRIBUTION)
ACT, 1992

30. The Infant Milk Substitutes, Feeding Bottles and
Infant Foods (Regulation of Production, Supply and
Distribution) Act, 1992 Amended in 2003 regulates
the production, supply and distribution of infant milk
substitutes, feeding bottles and infant foods with a
view for protecting and promoting breastfeeding
and for the matters relating to it including
advertisement of the same.

31. THE CONTRACT ACT, 1872
• As per the Contract Act, 1872, the
advertisements for gambling, lottery and prize
games have held to be wagering contracts and
thus void and unenforceable, and are prohibited
in India. While reading the provisions of the Act
along with the ASCI guidelines it is understood
that even the incorporation of a visual
representation of such gaming room or table
could be construed as indirect advertisement.

32. THE EMBLEMS AND NAMES
(PREVENTION OF IMPROPER
USE) ACT, 1950
• This Act prohibits the use by any private party of
certain names, emblems, etc.

33. MOTOR VEHICLES ACT, 1988
• This law affects outdoor advertisements, like
bill boards, posters, neon signs, etc. The Act,
grants powers to remove such
advertisements which may distract drivers
and have the potential of causing road
accidents.

34. THE MONOPOLIES AND
RESTRICTIVE TRADE PRACTICE
ACT, 1969
• It had been the most effective Act in the eighties and
nineties to regulate undesirable advertising. In the
year 1984, the government brought, through an
amendment, "unfair trade practices" under the
purview of the MRTP Commission and the Office of
the Director General (Investigation and Registration).
However, this Act is being replaced by the
Competition Act, 2002 but the cases pending under
the MRTP Commission are still being heard.
Moreover, a Competition Commission has been set
up under the Competition Act to deal with monopolies
and restrictive trade practices.

35. REMEDIES TO DECEPTIVE
ADVERTISING
• CEASE –AND – DESIST ORDERS
The cease –and –desist order, which prohibits
the respondent from engaging further in the
deceptive practice, It has been criticized as
being a command to “go and sin no more”,
which has little practical effect. By the time the
cease- and-desist order is issued, the
advertising may have served its purpose and
another campaign may be underway anyway.

36. • RESTITUTION
Restitution means that the consumer is compensated
for any damage. Restitution is rarely considered
because of its severity.
• AFFIRMATIVE DISCLOSURES
If an advertisement has provided insufficient
information to the consumer, an affirmative
disclosure might be issued. Affirmative disclosures
require “clear and conspicuous” disclosure of the
omitted information. Often the involved information
relates to deficiencies or limitations of the product
or service relating to matters of health or safety.

37. • CORRECTIVE ADVERTISING
 Corrective advertising required advertisers to
rectify past deception by making suitable
statements in future commercials.
 Some important issues could need research on
the subject. Any remedy should be no punitive in
nature and should not be burdensome.
 One problem with corrective advertising is that it
has usually resulted in lawyers writing copy and
insisting that it be run some arbitrary length of
time.

38.  The implementation of the communication objective
approach to corrective advertising will always face
difficulties. The problem of ascertaining how
misperception and its effect are to be measured and
the appropriate target level of misperception that
should be obtained reappears in this context.
Judgments on such questions are required to set
communication objectives.
 Another problem is the cost of measuring deception
over time. The tracking required measuring the impact
of the commercials- no problem for large advertisers,
who do that anyway – could be costly for smaller
advertisers and may require the government to share
some of the costs.

39.  Corrective advertising has only rarely been
considered, largely because of the difficulties in
deciding on the target objective. However, it
remains an important option and serves to focus
attention on the central issues in deception
cases.

40. CONCLUSION
Unfortunately despite several laws meant to protect
consumers against such unfair trade practices,
false and misleading advertisements continue to
exploit the consumer. Outdated laws, poor
enforcement of them are some of the lacunas in
order to control advertising. The need of the hour
is better laws in keeping with the times, better
enforcement, corrective advertisements, better
self-regulation by industry independent regulator
to regulate health and children -related
advertisements.

41. Several consumers and consumer organizations such
as, Consumer Voice are fighting against the
misleading advertisements. Magazines such as,
Consumer Voice, Insight publishes advertisements
running a column on misleading advertisements. They
also request consumers to share their opinions
regarding various advertisements so that any
advertisement which is deceptive and false can be
brought to the notice of the regulators.
The brighter side of all this is that as consumer
awareness grows, marketers and advertisers are fast
learning that in these days when the consumer is king,
nothing but the best would do. As JWT agency quotes,
"Advertising is a non-moral force, like electricity, which
not only illuminates but electrocutes. It’s worth to
civilization depends upon how it is used."