MISLEADING
ADVERTISEMENTS AND
THE CONSUMER
Amit Kumar Singh
What is advertising?
• Any form of communication used to influence
individuals to purchase products or hire services.
•
The dictionary meaning of advertising is a paid
communication through a non-personal medium in
which the sponsor is identified and the message is
controlled.
• “A paid for communication, addressed to the public or a
sections of it, the purpose of it is to influence the
opinion or behavior of those to whom it is addressed”.
(ASCI)
• Advertising is a business strategy and a powerful tool
for enhancing, maintaining and developing brand
equity.
Importance of Advertising
Advertising is used by the manufacturer or marketer to
 Increase the sales and maximize their profits
 Inform about the product or service
 Motivate the consumers
 Suggest better solutions to the consumers
 Generate potential buyers
 Create need for the product
 Play with psychology of the consumers
 Create curiosity about the product and services
For Consumers
• Advertisements provides awareness of the existence
of the product and services to the customer.
• Advertising makes shopping easy by reducing the
time and effort involved shopping.
• Advertisements have a strong influence on this
consumer society.
•
Our decisions whether to buy a product or not, is
oftenly influenced by the advertisements of certain
product and services.
What is Misleading Advertisement ?
An advertisement which potentially or actually, misleads or affects the
judgment of the consumer by their false and deceptive information is a
misleading advertising.
1.
Gives wrong information
2.
Can't substantiate their claim
3.
Hides important information
4.
Deliberately confuses consumers
5.
Offends the sensibility of person/society
6.
Promotes dangerous practices
7.
Other deceptive method to mislead consumers
1. Gives Wrong
Information
• When a advertisement of a
water purifier claims that it
gives 100 percent safe water
( when it only filter Bacteria
not Virus)
• If you use a particular brand
of edible oil then it will make
you free to all kinds of heart
diseases
2. Can’t substantiate their
claims
Claim of face creams advertisement that it
will make you brighter in a week.
Fare & Lovely Ad. (they shows that dark-skinned
people consider fair skin to be attractive)
VLCC Personal Care Ltd. Claim - “Reduces
flab arms & legs in just 14 days
India Today Women
(1/2008 issue)
The Dabur Chyawan Junior advertisement
implied that if children do not drink Dabur
health drink, they would remain short in
height ('Bachche tingu rahenge').The ad was
modified post the CCC's instructions.
3. Hides important
information
In the name of terms and conditions
many
a
times
companies
and
manufacturers hides the important
information.
When a mobile operator promises STD
calls for 40 paisa per minute but hides
the important terms and conditions.
‘Wheel” & “Vim” bars show lemons on
their package & advertisement and even
the advertiser claim that it contains
lemon while it is found that they only
have Lemon flavor in them.
4. Deliberately confuses
consumers
• When an advertisement promises
to give you a free good on every
purchase as a part of a festival
celebration.
• Display of Misleading Information
by Shopkeepers, Retailers and
Distributors
5. Offends the sensibility of people
• A television ad of the ING Vysya Life Insurance showed a father
was shown to be distressed by the birth of a baby girl because of
the financial cost involved…and again the ground was shown to
be breaking underneath him. This ad was considered antiwomen…but even though the ad was asked to be withdrawn, by
that time the ad campaign had already ended.
•
AXE deodorant (Dark Temptation)
TVC which showed a man covered
with chocolate being licked and bitten
by girls. This ad had to be modified.
Several complaints were received
against this commercial.
6. Dangerous ads
• ASCI has banned a Vodafone Essar
advertisement, which featured the
Zoozoo character committing suicide, as
it shows a dangerous action, which is
likely to encourage minors to emulate
such acts
•
There were some TV commercials which came under fire for
showing dangerous stunts. For example, Thums Up Bunge
Jumping Ad.
•
Maruti SX4 Ad, It promoted unsafe driving practices by showing
reckless driving across traffic lanes.
7. Other deceptive methods
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Disclaimers and fine print
False Warranties
Photo manipulation
Manipulation of standards
Fillers and oversized packaging
Misrepresentation of endorsements
Meaningless awards
Advertising the maximum
Usage limits
Meaningless terms
Inflated price comparison
Undefined terms
Failure to inform
False privacy or security claims
Label tampering
Branding
Ad placement
Fitness for use
Warning labels
Scare tactics
False testimonials
What Misleading advertisement does?
They violate consumers’ right
•
•
•
Information
Choose
Safety
Harmful to the consumer and economy
•
•
•
•
Financial loss
Mental harassment
Physical harm
Harms the overall economy
Laws and Institutions that regulate false and
Misleading Ads
•
Till now the Government of India has not set up a regulatory body
in India to regulate advertisements. Some ads, in particular, were
considered derogatory and banned by the government
•
Advertisers often view these rules and regulations as violating
their right to freedom of speech.
•
Freedom of speech and expression is a natural right guaranteed
under the Article 19 (1) (a) of the Constitution of India, but it is not
absolute but
1. Statutory mechanism
2. Regulatory mechanism
–Self regulatory mechanism of Media (ASCI, INS ,etc.)
–Through different Regulatory Authorities and Agencies (IRDA, TRAI)
ADVERTISING STANDARDS COUNCIL OF INDIA (ASCI)
•
It is one of the most important self regulatory mechanism
established by the advertisers, media representative, ad agencies,
advertising experts and academicians to look after Mis. Ad.
•
ASCI is a non profit and self-regulatory council.
•
It is a non statutory body which mainly aims at self regulation and
acts as a pressure group
ASCI’S code of self regulation says:
•
Ads should be truthful and fair to consumers and competitors
•
Within the bounds of generally accepted standards of public
decency and propriety
•
Not used indiscriminately for the promotion of produces, hazardous
or harmful to society or to individuals particularly minors, to a
degree unacceptable to society at large.
• The Advertising Standards
Council of India (ASCI) has
slammed the company for
encouraging potentially
unsafe activities.
•
T.I.M.E. (GMAT Exam) T.O.I. (6/2010)
Claim - “Join the No.1 Institute in
India for GMAT”.
Advertiser had not provided
supporting evidence/data duly
validated to prove this claim.
DURING
FINANCIAL
YEAR
2005-2006:
ASCI received 117 complaints of these, 67 found to be in
violation of the code of these, only in 53 cases, the ADS
were withdrawn or modified appropriately in accordance
with the consumer complaints cell decision.
Total
Upheld
Complied
% of
Compliance
Compliance awaited
Not
upheld
IntraIndustry
22
15
14
93%
1
7
Consumer
95
52
39
75%
13
43
Total
117
67
53
79%
14
50
Some Important Laws that regulate False and
Misleading Ads
1.
Drugs and Magic Remedies (Objectionable
Advertisements) Act
Those Advertisements that
promote miracle cures,
magic remedies
2. Cable Television Networks (Regulation)
Act and Rules
• Act mandates that all advertisements transmitted
through the cable television network must adhere to
the Advertisements Code Formulated under it.
3. The Infant Milk Substitute and Infant Foods
Act 1992
It prohibits advertisements and promotion of
infant milk substitutes, feeding bottles and infant
foods.
In addition, laws like;
•
•
•
•
•
Prevention of Food Adulteration Act,
Fruit Products Order,
Drugs and Cosmetics Act,
Bureau of Indian Standards Act,
Agricultural Produce (Grading and Marketing)
Act also have provisions to regulate ads..
Regulations passed by Regulators to Curb false and
Misleading Ads
• IRDA (Insurance Advertisements and Disclosure)
Regulations 2000
• SEBI (Disclosure and Investor Protection) Guidelines
• RBI: Non Banking Financial Companies and
Miscellaneous Non Banking Companies (Advertisements)
Rule
• RBI Directions on Ads issued by NBFCS
• TRAI Directives on Ads
• Chapter 6 of Medical Council of India Code of Ethics
Regulations
Laws that give relief to Consumers affected
by Misleading Ads
• Consumer Protection Act
• MRTP Act now Competition Act
Both Laws define such Ads as Unfair Trade Practice and
Provide for
• Cease and desist orders against such Ads
• Corrective Ads
• Compensation to affected Consumers
Why Misleading Ads Continue:
• Outdated Laws
• Poor Enforcement of Laws
• ASCI’S Efforts at self regulation commendable,
but not adequate
• People in India are ignorant, indifferent and most
importantly have ‘chalta hai attitude’
Why are ASCI’S efforts inadequate?
•
It lacks the force of legal recognition
•
Decisions of ASCI is not binding on AD companies or
advertisers
•
Need for enrolling more members
•
:Representation from the advertisers category continues to
be poor. over 100 major advertisers yet to become members
of the council (2003-2004 report of ASCI)
•
Delay: an AD can generate an awareness level of 90 per cent
for a product or a service within three months.
•
No provision of punishments for misleading advertisements
What is needed to protect Consumers from
Misleading Ads
•Better laws in keeping with the times
•Better enforcement
•Corrective advertisements
•Better self-regulation by industry
•Independent regulator to regulate health –related ads
What Consumers/ Consumer Groups/
State Governments can do:
1.
Write to law Enforcement Officials, drawing their
attention to poor enforcement of laws
2.
File complaints before the consumer courts: under the
CP Act,
3.
State Government and Central Government can also file
complaints on behalf of consumers
4.
File a complaint before the MRTP Commission
5.
Write to the manufacturer/service provider,
protesting against such Ads
6.
Write to ASCI: 205, Bombay Market, Tardeo Road,
Post Box 7939, Mumbai -400034
E-mail: ASCI@VSNL.COM
website: WWW.ASCI.CO.IN
Think before being misled
• Do we really think that these
high profile actors uses the
products
advertise
by
themselves?
Thank You