30 Oct 2017
INDIA: Companies Behind Misleading Ads Face Jail Terms and Substantial Fines
Producers and distributors of misleading advertising could now face fines of up to INR 5 million (US$76,768), while any manufacturers resorting to such practices may also run the risk of imprisonment. In addition, a new body – the Central Consumer Protection Authority (CCPA) – is to be established with a specific brief to accelerate the processing of mass consumer complaints related to misleading advertising.
While the CCPA will focus on those instances where a substantial number of consumers have complained about a particular advertising campaign, individual grievances will still be handled by the appropriate consumer commissions, with online submission now accepted for the first time. The legislation is expected to receive approval during the course of the Indian Parliament’s 2017 winter session, which is scheduled to commence on 27 November.