Online ads to be regulated by new consumer law

THE LAW SEEKS TO HOLD ENDORSERS, SERVICE PROVIDERS LIABLE FOR MISLEADING CLAIMS

NEW DELHI: Indian advertising is headed for an overhaul, with a law designed to protect consumers from misleading ads in the age of online buying—fortuitous amid the pandemic—coming in to force on Monday.

The Consumer Protection Act 2019, which updates a 1986 legislation, could revolutionise the way the industry is monitored—thus far by the self-regulatory Advertising Standards Council of India.

Now, a Central Consumer Protection

Authority, headed by a government-appointed chief commissioner, will be set up to regulate violations of consumer rights, unfair trading practices and false advertisements. The law seeks to hold manufacturers, service providers and celebrity endorsers accountable for ads, stipulating heavy fines and even jail terms for misleading claims.

Under the new law, apart from traditional mediums such as television, radio, print and outdoor arenas, the law also takes digital platforms into its regulatory sweep. They will include e-commotwani merce websites that have had a free run so far, experts said. “At a time when most consumer transactions are happening on e-commerce and digital platforms, that the online medium has come under the law’s scope is a big thing,” said Anisha Motwani, managing partner at marketing firm Stormthenorm Ventures.

was part of the committee that wrote the white paper with suggestions for the 1986 law. The new law, she said, holds to account not just advertising but also faulty product makers and service providers. “E-commerce platforms can no longer get away with the argument that they are only delivering products. There’s an increased liability on them as well as manufacturers where penal consequences fall on them.” The new law provides for ‘e-filing’ of complaints and a video conferencing option to participate in complaint redressal.