Supreme Court Directed Equal Responsibility Of Advertisers And Endorsers In Misleading ADS.

Written by:

Adv Shubham Jindal

Updated: 08-03-2024

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The Supreme Court issued a warning to celebrities and social media influencers to use caution while interacting with products. The court also stated that these individuals would bear equal responsibility and liability should they be found to be advocating goods or services in deceptive ads.

A bench consisting of Justices Hima Kohli and Ahsanuddin Amanullah noted that influencers must disclose sponsored endorsements by criteria set forth by the Central Consumer Protection Authority (CCPA).

The Court stated that the responsibility for releasing deceptive and false commercial ads rests equally with the marketers, advertising agencies, and endorsers. Products are greatly aided by the endorsements of public figures, influencers, celebrities, and the like. As such, the Bench stated that public personalities must always act responsibly when supporting any product during an advertisement.

Influencers and celebrities, the court has stressed, should make sure they abide by the CCPA standards before selecting an endorsement and should not misuse the public's confidence.

Before imposing a temporary order, the court had chastised Patanjali for its deceptive advertisements. OhIt also recognized that Patanjali and its promoters, Baba Ramdev and Acharya Balkrishna, needed to take corrective action.

However, several more significant issues were eventually brought to the court's attention, such as deceptive advertising by other manufacturers of consumer goods and unethical medical procedures.

Legal Provisions:

1. According to the Consumer Protection Act of 2019, a deceptive advertisement for any kind of product or service is one that: Makes up a description of a good or service, Gives a fictitious assurance, Expresses or implies something that would be a misleading commercial practice, Examples of deceiving customers include hiding crucial information.

2. Under Section 10(1) of the Consumer Protection Act of 2019, the Central Consumer Protection Authority (CCPA) was established as a regulatory agency to address issues about consumer rights. Those who engage in unethical business operations or run offensive or inaccurate commercials that negatively impact the public interest are the focus of the CCPA. The Chief Commissioner serves as the head of the body, with only two other commissioners serving as members. One commissioner will handle concerns about commodities, while the other will investigate instances about services. Consumer Affairs Ministry is the Nodal Ministry.

3. Principal Elements of the Guidelines for the Prohibition of False Advertising and Endorsements of False Advertising 2022

4. Outlaw Ads Using Surrogates: There must be any surrogate advertisements for products or services whose advertising is forbidden or restricted (such as alcohol brands promoting sodas or music).

5. Forbid Taking Aim at Children: It is against the law to use children's inexperience in advertisements.

6. Sanctions: Under the Consumer Protection Act of 2019 and other pertinent legal requirements, infractions may result in penalties.

7. Manufacturers, advertisers, and endorsers may face fines from the CCPA of up to Rs 10 lakh. Penalties for repeat infractions are as high as Rs 50 lakh.

Decision of India's Supreme Court Regarding Deceptive Advertising

Advertisers and Endorsers: All parties involved in the release of deceptive and fraudulent advertisements bear equal accountability.
Importance of Public Figures, Influencers, and Celebrities: The importance of having these individuals responsibly endorse things in marketing was underlined.
Transparency rules: It emphasized the Central Consumer Protection Authority's (CCPA) rules, which emphasize how crucial transparency is when it comes to influencer endorsements that are paid for.

Guideline 8: advertisements about or featuring minors;
Guideline 12: obligations of producers, suppliers, and marketing firms). By doing this, it is made sure that customers' trust is not betrayed or exploited because of ignorance.
Guideline 13: mandates that advertisements be made with proper care, that the person endorsing a product has sufficient knowledge of or expertise with the particular food product, and that the product is not misleading.

Broadcaster Responsibilities: The Union Ministry of Information and Broadcasting's Broadcast Seva portal is where broadcasters must submit their self-declarations, according to the court.

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