Consumer Connect: 'CCPA Must Revise Surrogate Ads Norms,' Says Expert

Q. We watch on TV channels many advertisements making unbelievable claims about certain products. We also see several advertisements that are secretly and deceptively promoting popular liquor brands. Where does one complain against such ads? – Janhavi Nadkarni, Chembur

A. Many like you have the same questions about false and misleading ads. The Consumer Protection Act, 2019, (CPA) has created an authority called the Central Consumer Protection Authority (CCPA ). One of its main functions is “to ensure that no false or misleading advertisements are made of any goods or services” and “to ensure that no person takes part in the publication of any advertisement which is false or misleading.” Sec. 21 of the CPA empowers the CCPA to issue directions to the manufacturer, dealer, endorser or publisher to discontinue such advertisement or to modify it appropriately.

The CCPA is also empowered to impose a penalty for false or misleading advertisement by a manufacturer or an endorser which may extend up to Rs10 lakh. For every subsequent contravention the CCPA can impose a penalty which can extend to Rs50 lakh. The CCPA also has power to prohibit the endorser of a false or misleading advertisement from making endorsement of any product or service for a period which may extend to one year. However, no endorser shall be liable to pay a penalty if he has exercised due diligence to verify the veracity of the claims. Complaints to the CCPA about any false or misleading advertisement can be sent to ccpadoca@gov.in. along with evidence of the ad. The CCPA also has power to take suo motu cognisance of such ads advertisements and endorsements for misleading endorsements.

The guidelines , among other things, with regard to ``Prohibition of surrogate advertising" came into force on June 9, 2022. According to these guidelines an ad shall be considered surrogate if such an ad indicates or suggests directly or indirectly that it is an ad for the goods, product whose advertisement is prohibited or if such advertisement uses any brand name, logo, colour, layout associated with such prohibited goods or product. However, after saying all this, the guidelines say that “provided the mere use of a brand name or company name which may also be applied to goods, product whose advertising is prohibited shall not be considered to be surrogate advertisement, if such advertisement is not otherwise objectionable as per the provisions set out in these guidelines.

Thus, one hand the guidelines rightly describe what shall be considered as “surrogate advertisement” and on the other hand it says that it will be held surrogate advertisement only if it is otherwise objectionable as set out in these guidelines thereby negating its own norms set for surrogate advertising. This is strange and needs to be taken up with CCPA for corrective steps. It is no wonder we find nowadays several surrogate liquor ads with impunity. It is time CCPA removes this proviso which allows the liquor manufacturers to go on advertising their liquor brands. Interestingly, there is also a Cable TV Networks Act, 1995.

Rule 7 under this Act also prescribes the Advertising Code. According to Rule (2) (viii) no advertisement shall be permissible if it makes any direct or indirect reference to the prohibited product or if it contains any nuances or phrases promoting the prohibited products or if it uses situations typical for promotion of prohibited products. CCPA need to draw on these norms under Cable TV Rule 7 and revise its Guidelines on Surrogate Advertising to effectively ban surrogate ads on TV channels.

(Adv Shirish V Deshpande is chairman, Mumbai Grahak Panchayat. Queries may be sent to shirish50@yahoo.com)

Published on: Monday, May 26, 2025, 11:34 AM IST