Advertisements refer to mass media content made with the intention of persuading audiences, listeners, or readers to buy products and services. It serves as a medium of promoting goods or services by reaching out to thousands of individuals at once.
Advertisements perform a key function in informing the audiences about the products or services of the organisation. In a survey conducted in 2020, the total revenue collection from advertisements was recorded as 623 billion Indian rupees approximately. [1]
With regard to customer-company communication, advertising has become an essential facet of print and digital media and part of our social and economic system. Advertisements’ ability to transmit messages to audiences with remarkable inventiveness and creativity have made them a critical part of most companies’ marketing strategies. Recent scenarios have shown a variety of means to channel advertising, such as Youtube, magazines, papers, radio, TV, etc.
H. G. Wells demonstrates the complexity of advertising and its effect on customers through the comment “advertising is legalised lying.” Advertisements have a far-reaching effect on a person’s psyche, granting them a prominent position and making the laws governing them a top priority. There have been a number of instances when advertisements have been misused, as well as viewers and readers being misled. Misleading advertisements, however, now stand prohibited under Indian consumer protection laws.
There have been various instances where advertisements have been found to deceive viewers, perpetuate stereotypes, and infiltrate deeper into society with their negative impacts. These obnoxious advertisements infringe on the consumer’s fundamental rights and create unhealthy market competition. The reasons stated above clearly demonstrate why we require explicit and stable regulations to regulate advertising.
Advertising Regulations in India:
The Press Council of India Act, 1978, the Cable Television Regulation Act, 1955, and the Cable Television Amendment Act, 2006 are the key statutes that govern the advertising sector in India. In addition, the Advertising Standard Council of India (ASCI) was founded as a “self-regulatory and non-statutory” body.
Press Council of India Act, 1978:
The Press Council Act of 1978 was enacted with the goal of preserving press freedom and maintaining particular standards for Indian newspapers and news agencies. The Act established a corporate body with the jurisdiction to regulate the actions of any authority or organisation.
A complaint can be filed under Section 14(1) of the Act if there has been a breach of recognised ethics or if there has been a matter of publication or non-publication. Any individual or group of individuals can file a complaint if unsuitable and inappropriate matter is published in a press advertisement, even if they are not directly involved with the subject. [2]
Cable Television Regulation Act, 1955 and Cable Television Amendment Act, 2006:
Section 6 of the Cable Television Networks (Regulations) Act, 1995, contains the guidelines for advertisements. The clause stipulates that advertising broadcast over cable must comply with the advertisement code established by the Cable Television Networks (Amendment) Rules, 2006. These advertisement codes, on the other hand, do not apply to international satellite channels, which can be received without the use of any special equipment or decoder.
Rule 7 of the Cable Television Networks (Amendment) Rules, 2006 establishes advertising codes for cable services. These codes include certain considerations should be taken into account while launching advertisements which include not offending people’s morality or religious beliefs, and not crossing the threshold of decency.
Advertising Standard Council of India (ASCI):
The Advertising Standards Council of India was established in 1985. It is a self-regulatory body for the advertising sector in India. India’s Advertising Standards Council was founded with the cooperation of four advertising-related sectors: advertisers, advertising agencies, media (including broadcasters and the press), and others such as public relations firms and market research firms. The Consumer Complaints Council is an active member of India’s Advertising Standards Council. Together, these stakeholders attempt to set standards that advertisers can follow.
Consumer Protection Act, 2019:
Customers have the right to information about the quality, standard, potency, purity, and pricing of services or commodities, as the case may be, under Section 2(9)(ii) of the Consumer Protection Act, 2019. This protects consumers against unfair trade practices and protects them from exploitation.
The word “unfair trade practises”, defined in Section 2(47) of the Act, also encompasses the scope of “false advertisements,” which includes misrepresentations or deceiving allurements. The Consumer Protection Act can be used to seek redressal for such unfair actions.
The word “misleading advertisements” is defined in Section 2(28) of the Act, which establishes the criteria for evaluating which advertisements are deceptive in nature.
Section 10 (2) of the legislation mandates the establishment of a regulatory body known as the Central Consumer Protection Authority, which will be led by a chief commissioner selected by the government. The authority’s headquarters are in Delhi. Ads that are false or misleading will be monitored and dealt with by the regulatory authority. Consumer rights and unfair trade practices will also be protected by the body.
Under this Act, service providers, manufacturers, and anybody else that creates false marketing will be held accountable. For a deceptive or misleading advertisement, these violators could face a fine of up to Rs 1,000,000. They may also be sentenced to up to two years in jail for the same offence.
Cigarettes and other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply, and Distribution) Act, 2003:
Section 5 of the Act prohibits the broadcast or publication of direct and indirect tobacco product advertisements in any form, including audio, visual, and print media. If a person violates Section 5 for the first time, they can be sentenced to up to two years in jail with or without a fine, and if they are convicted again, they can be sentenced to up to five years in prison with or without a fine.
Doordarshan/ All India Radio (AIR) Advertisement Code:
A detailed code has been devised for commercial advertisements on Doordarshan and AIR, which controls the content and nature of commercials. This is overseen by the Prasar Bharati Board (a statutory autonomous body). The Prasar Bharati Board was established by the Prasar Bharati Act, 1990.
Young Persons (Harmful Publications) Act, 1956:
A person who publishes advertising that is damaging in any way is subject to a penalty under Section 3 of the Act.
Indian Penal Code, 1860:
The Indian Penal Code, 1860, has provisions for the publication of obscene [3] , defamatory [4] , lottery, and/or comments that cause or promote social disharmony or enmity [5] . The code expressly forbids the publication of the aforementioned materials.
Conclusion:
It is evident that the country’s advertising sector has reached new heights in terms of representing and protecting the interests of consumers and businesses. New, innovative strategies have also led to highly effective advertisements, at the same time making the market super competitive.
The Advertising Standards Council of India, which is also a non-statutory institution that strives to promote ethical advertising practices through voluntary self-regulation, is the closest thing in terms of a central regulatory authority. However, down the line experts should examine to determine whether self-regulation is effective enough or whether stronger measures are required to regulate advertisements. The latter might very well be the case, especially in the face of aggressive digital marketing by companies and brands.
[1] S. Keelery, Advertising industry in India – statistics & facts, STASTICA (Sept. 11 th , 2021, 12: 30 PM), https://www.statista.com/topics/2116/advertising-industry-in-india/.
[2] Indian Press Council, ACCOUNTABLE JOURNALISM (Sept. 12, 2021, 5:30 PM), https://accountablejournalism.org/ethics-codes/india-press-council-of-india.
[3] Section 292, Indian Penal Code, 1860.
[4] Section 499, Indian Penal Code, 1860.
[5] Section 505, Indian Penal Code, 1860.
YLCC would like to thank Diksha Paliwal for her valuable insights in this article.