Advertising Regulation

The new Consumer Protection Act, 2019 provided for new Central Consumer Protection Authority (CCPA) which will regulate false and misleading advertising and will take action to punish the offenders, whether through fines, discontinuance or alteration of the ad, or even jail.

The ASCI proposes to the government for a co-regulating role against false and misleading advertisement, following the dilution of its powers by the new Consumer Protection Act, 2019. Though ASCI had no legal powers, it was reasonably successful in acting against the erring parties.

ASCI has a robust system of scrutiny to establish whether the advertising is false or misleading. It has a dispute panel, a system for fast-tracking cases, and a system for review process. They have the technical expertise and the organisation to scrutinise complaints. They can continue to do so, and report their decision to CCPA.

The CCPA can then exercise its legal powers and can take penal action as it deems fit.

ASCI new entertains complaints either suo moto or by receiving it from consumers and other parties. It has two Consumer Complaints Councils. Cases are heard and action is taken within 30 days. The compliance is voluntary.

ASCI can spread awareness on the subject and provide assistance to CCPA if and when it is sought.

The Consumer Protection Act, 2019 has a provision for the central government to designate by notification, any statutory body, to exercise powers of the central authority. It is to be seen whether ASCI will be designated as such.

ASCI has four chapters that define its role — looking at misleading claims, things offensive and indecent, those unsafe or harmful for consumers and unfairness in competition. The CCPA is mainly concentrating on the first chapter.

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