Misleading Advertisement Law in India: CCPA Rules and Penalties

Misleading advertisement law in India is mainly the Consumer Protection Act, 2019: section 2(28) defines a misleading ad, section 21 lets the Central Consumer Protection Authority (CCPA) order it withdrawn and penalise the manufacturer or endorser up to ₹10 lakh (₹50 lakh for repeats), and section 89 makes it a criminal offence for the manufacturer or service provider, with up to 2 years’ imprisonment and a ₹10 lakh fine. The CCPA’s Guidelines of 9 June 2022 add specific rules on bait ads, surrogate ads, “free” claims, ads aimed at children and disclaimers.

What misleading advertisement law in India treats as misleading

Under section 2(28), an ad is misleading if it falsely describes a product or service, gives a false guarantee or is likely to mislead about its nature, substance, quantity or quality, conveys a representation that would be an unfair trade practice, or deliberately conceals important information. Two points catch marketers out:

• Implied claims count. A model in a white coat beside a toothpaste implies medical endorsement even if nobody says “doctor”.
• Concealment counts. An EMI offer that hides a processing fee can mislead even when every printed word is true.

Misleading advertisement law in India does not punish puffery. “The taste you will love” is not a testable fact. But “No. 1 in India”, “kills 99.9% germs”, “clinically proven” or “2x faster charging” are claims, and the evidence must match the exact words before the ad goes out.

Example: Veloce Mobility, a Pune electric scooter start-up, advertised “150 km on a single charge”, based on a test at a steady 25 km/h on a flat track. Riders in city traffic got far less. The claim was true in a lab but hid important conditions. The fix was “up to 150 km (test conditions stated; real-world range varies)” with equal prominence.

The CCPA Guidelines, 2022: specific rules

The Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022 apply to every ad in every medium, and to manufacturers, service providers, advertisers, agencies and endorsers. Highlights:

• Bait ads: do not advertise a low price without enough stock to meet reasonable demand; state limits on availability.
• Surrogate ads: no indirect ads for products whose advertising is prohibited, including through the restricted brand’s name, logo or colours.
• “Free” claims: not free if the buyer pays hidden packaging, handling or delivery costs, or the cost sits in the main price.
• Children: do not exploit inexperience, encourage unsafe practices or exaggerate features.
• Disclaimers: must not hide material information or contradict the main claim, must be in the same language as the claim and legible.

Endorser liability and the brand’s responsibility

Misleading advertisement law in India reaches endorsers too: celebrities and influencers can be penalised under section 21 and barred from endorsing for up to one year, or three years for repeats. Under section 21(5), an endorser who exercised due diligence to verify the claims is not liable to those penalties. Liability does not shift away from the brand: the manufacturer stays liable under section 21, and section 89 targets the manufacturer or service provider. In practice, a brand should give every endorser a claims and evidence pack before the shoot.

For influencer labels such as #Ad and the government’s “Endorsement Know-hows!” (20 January 2023), see our separate guide to ASCI influencer guidelines and disclosure.

Sector rules on top of the CPA

• Food: section 24 of the Food Safety and Standards Act, 2006 bars misleading food ads; section 53 provides a penalty up to ₹10 lakh. The FSS (Advertising and Claims) Regulations, 2018 control “natural”, “fresh”, nutrition and health claims.
• Drugs and remedies: the Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954 bars ads claiming to treat 54 Scheduled diseases and conditions (s.3) and misleading drug ads (s.4).
• Green claims: the CCPA’s greenwashing guidelines (15 October 2024) require accurate qualifiers and verifiable evidence for words like “eco-friendly”.
• Coaching: the coaching guidelines (13 November 2024) ban guaranteed selection claims and require a successful candidate’s written consent obtained after selection before using their name or photo.
• Health ads generally: in Indian Medical Association v. Union of India (2024), the Supreme Court made strong observations on misleading health ads and directed advertisers to file self-declarations before releasing ads. Check the current portal process with your media agency.

Frequently asked questions

What is the misleading advertisement law in India?

The Consumer Protection Act, 2019 is the main law: s.2(28) defines a misleading ad, s.21 lets the CCPA order withdrawal and impose penalties up to ₹10 lakh (₹50 lakh for repeats), and s.89 makes it a criminal offence. The CCPA’s 2022 Guidelines and sector laws on food, drugs, coaching and green claims add detail.

Can an influencer be fined for a misleading ad in India?

Yes. The CCPA can fine an endorser up to ₹10 lakh, or ₹50 lakh for repeat contraventions, and bar them from endorsing for up to one or three years. An endorser who did due diligence on the claims is protected by s.21(5).

Is “No. 1” or “best” allowed in an Indian ad?

Only if you can prove it with current, independent data that matches how consumers will read the claim, and you show the source. Obvious puffery that no one reads as fact is usually fine.

Where can a consumer complain about a misleading ad?

To the CCPA, to ASCI for free, or as a consumer complaint on e-Jagriti within two years (s.69). The National Consumer Helpline is 1915.

Quick quiz

To apply misleading advertisement law in India to real campaigns, see the Marketing and Advertising Law certificate course.

Sources

• Consumer Protection Act, 2019: ss.2(1), 2(18), 2(28), 2(47), 21, 69, 89
• CCPA Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022 (9 June 2022)
• CCPA Guidelines on greenwashing (15 October 2024) and on misleading advertisement in the coaching sector (13 November 2024)
• Food Safety and Standards Act, 2006: ss.24, 53; FSS (Advertising and Claims) Regulations, 2018
• Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954: ss.3, 4
• Indian Medical Association v. Union of India (Supreme Court, 2024)

This page is for education and general information, not legal advice for a specific case. Law as on 31 October 2026.