Misleading Advertising Claims In India: A Legal Perspective – Advertising, Marketing & Branding

In the realm of consumer goods, advertising serves as a powerful
tool to inform and persuade. However, recent events have shed light
on the detrimental consequences of misleading advertising
practices, prompting a closer examination of regulatory frameworks
in India. From the Supreme Court’s landmark decision in the
case of Indian Medical Association v. Union of India
(2022)1 to the scrutiny faced by the nutraceutical
industry, the need for robust legal provisions to govern
advertising claims has never been more apparent.

The Patanjali Saga: A Wake-Up Call

The legal battle between the Indian Medical Association (IMA)
and Patanjali Ayurved, led by Baba Ramdev, serves as a stark
reminder of the perils of disseminating misleading advertisements.
The Supreme Court’s verdict in favor of the IMA, citing
Patanjali’s derogatory advertisement against allopathic
medicine, underscores the importance of truthfulness and accuracy
in advertising. This decision not only led to a ban on
Patanjali’s marketing activities but also highlighted the
urgent need for stricter regulation of advertising claims in
India.

Moreover, recent research shedding light on the quality and
accuracy of advertised claims in the supplement
industry
adds another layer to the debate. An
observational analysis of popular protein powders in India revealed
discrepancies in quality, labeling, and advertised claims.
Published2 in the peer-reviewed journal Medicine, these
findings underscore the prevalence of misleading advertising
practices and the need for stricter regulatory measures.

Understanding the Legal Framework: DOMA, CPA, and Food Safety
Regulations

In India, several laws govern advertising practices, each aimed
at ensuring transparency, fairness, and consumer protection. The
Drugs & Other Magical Remedies Act, 1954 (DOMA)3,
and the Consumer Protection Act, 20194 (CPA) lay down
provisions to curb misleading advertisements and penalize
offenders.

Under DOMA, publishing misleading advertisements regarding drugs
is explicitly prohibited, with violators facing imprisonment or
fines. Similarly, the CPA imposes stringent penalties for false or
misleading advertisements, aiming to safeguard consumer interests
and uphold the integrity of the market.

Moreover, for nutraceuticals and food products, the Food Safety
and Standards (Advertising and Claims) Regulations, 2018, provide
comprehensive guidelines to ensure the veracity and clarity of
advertising claims.

Rule 4: Ensuring Truthful and Meaningful Claims

Rule 4 of the Food Safety and Standards (Advertising and Claims)
Regulations, 20185, serves as a cornerstone in
maintaining the integrity of advertising practices in the food
industry. Its primary objective is to guarantee that all claims
made in advertisements are not only accurate but also
comprehensible to consumers, thereby fostering transparency and
trust.

One of the fundamental principles outlined in Rule 4 is the
requirement for claims to be truthful and
unambiguous
. This means that any assertion made about a
food product must be substantiated by scientific evidence and must
not mislead consumers regarding the product’s characteristics
or benefits. For instance, a claim stating that a certain snack is
“low-fat” must be supported by data demonstrating its
reduced fat content compared to other similar products.

Moreover, Rule 4 prohibits advertisements from
encouraging or condoning excess consumption
of a
particular food. This is crucial in promoting healthy eating habits
and preventing the propagation of misleading information that could
potentially harm consumers’ well-being. Advertisements should
instead focus on promoting balanced diets and responsible
consumption practices.

Another aspect addressed by Rule 4 is the requirement for claims
to specify the number of servings of the food per
day for the claimed benefit. This ensures that consumers are aware
of the recommended intake of the product to derive the purported
benefits without overconsumption. For example, if a breakfast
cereal claims to provide essential nutrients, it should specify the
recommended serving size to achieve these benefits effectively.

Furthermore, Rule 4 emphasizes the importance of consistency
between advertising claims and the information
provided on the product label. Any discrepancy between the two
could lead to confusion among consumers and undermine their trust
in the product. Therefore, advertisers must ensure that
claims made in advertisements align with the nutritional
content
and other relevant details provided on the product
packaging.

For instance, if a food product claims to be low in fat due to a
specific cooking method, this information must be prominently
displayed on the packaging, allowing consumers to assess the
product’s suitability for their dietary needs.

In addition to these provisions, Rule 4 also addresses
the use of trademarks, brand names, and fancy descriptors
in advertising
. Advertisements must not employ such
elements in a manner that misleads consumers about the nature or
attributes of the food product. If a brand name suggests certain
qualities that the product does not possess, a disclaimer must be
included to clarify this discrepancy and prevent consumer
deception.

Rule 5: Regulating Nutritional Claims

Rule 5 of the Food Safety and Standards (Advertising and Claims)
Regulations, 2018, plays a vital role in ensuring the accuracy and
reliability of nutritional claims made in advertisements. With the
increasing emphasis on healthy eating and nutrition, it is
essential to regulate the information provided to consumers
regarding the nutritional content of food products.

One of the key components of Rule 5 is the categorization of
nutritional claims into two types: nutrient content claims
and nutrient comparative claims.

Nutrient content claims focus on highlighting specific
nutritional attributes of a food product, such as being “high
in fiber” or “low in sodium.” These claims must
comply with the conditions specified in Schedule I of the
regulations, ensuring that they are substantiated by scientific
evidence and not misleading to consumers.

Nutrient comparative claims involve comparisons between
different versions of the same food or similar foods. For example,
a comparative claim might assert that a particular brand of yogurt
contains “50% less sugar” than its leading competitor. To
prevent confusion among consumers, Rule 5 stipulates specific
criteria that must be met for such claims, including the minimum
percentage difference in nutritional parameters between the
compared foods.

Furthermore, Rule 5 emphasizes the importance of providing
clear and accurate information to consumers when
making nutritional claims. Advertisements must clearly identify the
foods being compared and provide the relative difference in claimed
parameters, expressed as a percentage, fraction, or absolute
amount. This enables consumers to make informed decisions based on
meaningful comparisons between products.

Additionally, Rule 5 addresses the use of equivalence
claims
, which assert that a food product contains the same
amount of a nutrient as another food. For example, a breakfast
cereal might claim to contain “as much fiber as an
apple.” However, such claims must be backed by
evidence
demonstrating that the amount of the nutrient in
the labeled food is equivalent to that found in the reference food,
per standardized serving size.

Penalties for Non-Compliance

In addition to outlining regulatory requirements, the Food
Safety and Standards (Advertising and Claims) Regulations, 2018,
also specify penalties for non-compliance. Rule 13 stipulates that
any person advertising or party to the publication of non-compliant
advertisements shall be penalized as per Section 53 of the Food
Safety and Standards Act, 2006[6]. The amount of fine for
non-compliance with advertising regulations can extend up to ten
lakh rupees. This provision underscores the seriousness of adhering
to advertising regulations and the consequences of misleading
consumers.

Conclusion: Upholding Integrity in Advertising Practices

In conclusion, the recent legal developments surrounding
advertising claims in India underscore the critical need for
regulatory compliance and enforcement. By adhering to laws
governing advertising practices and upholding truthfulness and
accuracy in advertising, businesses can build trust with consumers
and contribute to a fair and transparent marketplace. Effective
implementation of these regulations is essential to safeguard
consumer interests and promote public health and well-being.
Ultimately, the onus lies on companies to prioritize ethical
advertising practices, thereby fostering a culture of integrity and
accountability in the industry.

Footnotes

1. WRIT PETITION(CIVIL) NO.645/2022 protein

2. Citizens protein project: A self-funded, transparent,
and concerning report on analysis of popular supplements sold in
the Indian market. Available at: https://journals.lww.com/md
journal/fulltext/2024/04050/citizens_protein_project__a_self_funded,.15.aspx?context=latest
articles

3. Available at: https://www.indiacode.nic.in/bitstream/123456789/1412/1/195421.pdf

4. Available at: https://www.indiacode.nic.in/bitstream/123456789/15256/1/a2019-35.pdf

5. Available at: https://fssai.gov.in/upload/uploadfiles/files/Compendium_Advertising_Claims_Regulations_0
4_03_2021.pdf

6. Available at: https://www.indiacode.nic.in/bitstream/123456789/7800/1/200634_food_safety_and_standar
ds_act%2C_2006.pdf

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