Advertising

Regulations
Group 21
Riya Toteja (2021SMF6622)
Mohanraj (2021SMF6541)
Rimmon
Udit
What are Advertising Why do we need
regulations? regulations in advertising?
These are the legal Advertisements are very persuasive and
stipulations in place for how powerful tool. They have the ability
companies are allowed to to influence the subconscious minds of the
market their services and viewers. Businesses use to it persuade
products to the public consumers into buying or using their products
for monetary gains
 Different types of "False advertising" ?
Mislabeling Bait & Switch
The use of false or Advertisers attempt to lure
misleading information on customers in by offering
product packaging or in incredible deals but change
related advertising the deal after the customer
materials has already invested a
substantial amount of time
and energy
Failure to disclose
A company that does
not include material
information about its
product or only partially
discloses information
can also be considered
to be engaging in false
advertising
 Flawed Research Product Disparagement Trademark Infringement
Representations found to When companies falsely It is the unauthorized use of a
be unsupported by disparage a competitor’s trademark or service mark. This
accepted authority or product as a part of their use can be in connection with
research or which are marketing goods or services and may lead
contradicted by prevailing to confusion, deception, or a
authority or research misunderstanding about the
actual company a product or
service came from
 Central Consumer Protection Authority (CCPA)
• Established under Section 10 of the Consumer Protection Act, 2019

• Its functions include:

(a) Regulating matters relating to violation of the rights of the consumers, unfair
trade practices and false or misleading advertisements which are prejudicial to the
interests of consumers

(b) To promote, protect and enforce the rights of consumers as a class

 History of ASCI

ASCI was established in It was established under Section

1 1985 by the Government of

India, and the representatives 2 25 of the Companies Act, 1956

of industry as an autonomous
institute

The advertising association The council was voluntary and

3 4
of India, the media owner's self-regulatory, registered as a
association and the Indian non-profit company
newspaper society came
together to form the ASCI
 Composition of ASCI
The council is managed by a board of 16 elected members

Council

Advertising Allied
Advertiser Media
Agency professions
4 From Advertisers 4 from Advertising 4 from Media 4 from Allied professions
Agency like outdoor contractor,
audio visual, consumer
researcher, printer, etc
 Objective
• The objectives of the ASCI include to “monitor, manage and promote” standards with respect to advertising
practices in the country
• Another objective includes to provide for a Consumer Complaints Council to entertain claims against
advertisements in violation of the set standards and practices

Claims Presentation Products Methods

That advertising claims are
presented with truthfulness
and honesty, and that no
misleading and false claims
are made
That the advertisements are
not made and presented in a
manner which is offensive to
the general public in India,
and that the standards of
public agency are followed
That no advertisement That no unfair means
is made in respect of are used by anyone
products or services player in the market, and
regarded as hazardous that advertisements are
or unacceptable to made in a competitive
individuals or to the manner.
society
 Consumer Complain Council
• The Consumer Complaints Council is the body responsible for examining and investigating complaints from
consumers and the public at large in relation to any contravention of the Code of Conduct of the News Broadcasting
Associations and advertisement ethics.

• It also makes recommendations as to actions to be taken against such contravention

• Composition
a) The members of the Consumer Complaints Council are appointed by the Board of Governors
b) There are 21 members of which 12 are appointed from the civil society such as activist, journalist, educator, etc, and
9 from advertiser, advertising agency and allied professionals

• Working
a) The council puts out advertisement in newspaper for awareness sake
b) The council receives approximately 150 complaint each year in online and printed form, with 50% upheld and 80%
withdrawn or modified 
 ASCI & FTC
ASCI
 Advertising Standard Council of India is a non-
profit organisation
 ASCI has 16 members in its Board of
Governors, four each representing the key
sectors such as Advertisers, advertising
agencies, media and allied professions   Commissioners are nominated by
 As ASCI is not a government regulated body
thus it cannot involve law enforcing authorities
to its working procedure
FTC
 Federal Trade Commision is a government
funded organisation
 The commission is headed by five
commissioners, who each serve seven-year
terms.
the president and confirmed by the Senate.
 No more than three commissioners can be of the
same political party. 
 FTC records all complaint on the online
platform called Consumer Sentinel that is used
by several criminal law enforcement and civil
authorities worldwide
 Case Studies: Case 1
Brand- Bajaj Pulsar 

Complaint- Visuals had bikers doing extreme

stunts but the disclaimer was almost
invisible.

CCC said that- This shows stunts which are

dangerous that do not have any regard for
safety and hence some action should be
taken by the company. 

Result- The company modified the ad with a

clear disclaimer in the beginning itself.
 Case 2: KFC Case 3: AXE Dark
Temptation Deodorant 
Complaint- Car crashes after driver loses
Complaint- Ad is in bad taste and is
concentration while eating KFC product. The
vulgar, as it shows the girls licking and
words "non-stop khao, non-stop khilao".
biting the boy. 
CCC said – The Visual depicting the “driver
CCC said - The Visuals were obscene and
licking his finger” implied he has been eating
likely to cause widespread outrage. 
while driving, which could have a big harm to the
Result- Ad was modified by deleting a few
passengers. Ad shows a dangerous practice
scenes
without justifiable reason 
Result- Ad was modified
 Case Studies: Case 4
Brand- BIG BAZAAR 

Complaint- Print ad has the tagline- “Is se

sasta aur accha kahin nahi!”. The
Complainant says that there are many items
which are cheaper than Big Bazaar available
in the market.

CCC said - Claim misleading by overstating. 

Result- The Advertiser showed comparative

bills of Big Bazaar and other stores, which
proved that on a basket of commodities, Big
Bazaar is cheaper. So no change was made to
the advertisement.
 Case 5: Patanjali  Case 6: Red Bull
Baba Ramdev’s Patanjali company was fined "Red Bull gives you wings" has been the energy
Rs. 11 Lakh for stating false and misleading drink's slogan for nearly two decades. The
claims in its various advertisements by ASCI. company has agreed to pay out more than $13
● Claim that its rivals are selling mustard oil million after settling a US class action lawsuit
adulterated with oil made by solvent that accused the company of false and
extraction process with neurotoxin misleading advertising claims.
containing Hexane.
● claimed rival brands as "expensive juices
containing less pulp".
● claims in the ad for cattle feed 'Patanjali
Dugdhamrut' that "other companies mix 3
to 4 per cent urea in their cattle feed."