The Central Consumer Protection Authority (CCPA) take suo-motu cognizance, imposes ₹1 Lakh Penalty on Storia Foods & Bectors Food for Misleading Advertisements.
They claim 100% priority in front label with bold letter and on back they put disclaimer on the same product. They trying to defended and stating that it’s labeling for conveying the customer that sole source contained in there product. And they reference the FSSAI labeling regulations but the CCPA rejected all argument.
CCPA watch dog observe that it’s become trend that on front label mislead claim of 100% print. And on back of the same product mention of disclaimer on product.
It said that companies are misleading the product as they claiming 100% purity on there product, it’s misleading and unfair trade practise. It also order immediately removal of 100% claim from there product.
Below are following legal provision related unfair trade practice and misleading advertisement of product.
Consumer protection Act 2019 on misleading advertisement
The consumer protection act 2019 on misleading advertisement it’s section 2(28) “misleading advertisement” in relation to any product or service, means an advertisement, which:-
- (i) falsely describes such product or service, or
- (ii) Gives a false guarantee to, or is likely to mislead the consumers as to the nature, substance, quantity or quality of such product or service. or
- (iii) Conveys an express or implied representation which, if made by the manufacturer or seller or service provider thereof, would constitute an unfair trade practice.
- (iv) Deliberately conceals important information.
Unfair trade practice penalty in india
Section 2(47) of consumer protection act 2109 states about unfair trade practice means:-
- Which, for the purpose of promoting the sale,
- Use or supply of any goods or for the provision of any service.
- Adopts any unfair method or unfair or deceptive practice.
Unfair trade practice including any of the following practices
Making any statement, whether orally / in writing / by visible representation including by means of electronic record, which:-
- (a) falsely represents that the goods are of a particular standard, quality, quantity, grade, composition, style or model.
- (b) falsely represents that the services are of a particular standard, quality or grade.
- (c) falsely represents any re-built, second-hand, renovated, reconditioned or old goods as new goods.
- (d) Represents that the goods or services have sponsorship, approval, performance, characteristics, accessories, uses or benefits which such goods or services do not have.
- (e) Represents that the seller or the supplier has a sponsorship or approval or affiliation which such seller or supplier does not have.
- (f) Makes a false or misleading representation concerning the need for, or the usefulness of, any goods or services.
- (g) Gives to the public any warranty or guarantee of the performance, efficacy or length of life of a product etc.
- (h) makes to the public a representation in a form that purports to be
- (A) a warranty or guarantee of a product or of any goods or services.
- (B) a promise to replace, maintain or repair an article or any part thereof or to repeat or continue a service until it has achieved a specified result.
Frequently asked questions on misleading advertisement and unfair trade practice in india?