Advertising Laws in India: 2024’s Game-Changing Developments
The year 2024 has been monumental for advertising laws in India, introducing groundbreaking guidelines to combat misleading advertisements. As the Indian advertising market inches toward becoming a $19.2 billion industry by 2028, regulators are tightening the grip to protect consumer interests in this dynamic landscape.
Evolution of Advertising Laws in India
2019-2022: Consumer Protection Act (CPA) and E-Commerce Rules
The transformation began with the Consumer Protection Act, 2019 (CPA), which replaced the 1986 law. This act introduced a comprehensive definition of advertisements, encompassing all media forms, including digital platforms. For the first time, ‘misleading advertisements’ were defined to include those that:
- Falsely describe products or services;
- Mislead about the nature, quality, or quantity of a product;
- Constitute unfair trade practices; or
- Deliberately conceal critical information.
The CPA also established the Central Consumer Protection Authority (CCPA) to regulate misleading advertisements. The Consumer Protection (E-Commerce) Rules, 2020, further strengthened these efforts by mandating that e-commerce entities ensure advertising aligns with actual product characteristics and usage conditions. Sellers must take back goods and refund consumers if advertisements misrepresent the product’s features.
Misleading Advertisement Guidelines, 2022
In 2022, the Misleading Advertisement Guidelines laid the groundwork for honest advertising. Key requirements included:
- Substantiating claims with evidence;
- Prohibiting exaggerated scientific or practical claims;
- Ensuring compliance with sector-specific laws.
These guidelines targeted all stakeholders, including celebrities and influencers, emphasizing accountability across all advertising mediums.
2023-2024: New Trends, New Regulations
Dark Patterns and the Digital Age
Digital advertising’s rise brought dark patterns—deceptive practices that manipulate user behavior—into focus. In December 2023, the CCPA introduced the Dark Pattern Guidelines to counter practices like:
- False urgency (“Only one left!”);
- Automatic addition of services at checkout;
- Confirm sharing nudges.
These guidelines ensure advertisers, platforms, and sellers maintain transparency.
Tackling Greenwashing
In November 2024, the Greenwashing Guidelines addressed misleading environmental claims. Advertisers must:
- Provide verifiable evidence for environmental claims;
- Disclose material information through ads or QR codes;
- Avoid vague terms like “eco-friendly” without substantiation.
The Greenwashing Guidelines are a critical step in ensuring that consumers are not misled by superficial environmental claims.
Coaching Sector Reforms
The burgeoning coaching industry witnessed its own set of regulations. The Coaching Guidelines, issued in November 2024, target false claims about:
- Course quality and faculty credentials;
- Success rates and guaranteed outcomes;
- Admissions or promotions.
These guidelines mandate transparency, requiring consent from candidates before using their testimonials or photos in advertisements.
Sector-Specific Interventions
Regulatory bodies also focused on specific sectors:
- Insurance: IRDAI’s 2024 regulations require insurers to internally approve advertisements and follow strict norms.
- Finance: SEBI’s guidelines regulate ‘finfluencers,’ ensuring they provide only investor education, not financial advice.
- Betting and Gambling: Advisories from the Ministry of Information and Broadcasting (MIB) and CCPA discourage advertisements for illegal betting platforms.
Celebrity and Influencer Accountability
The CCPA has also cracked down on celebrity endorsements, urging influencers and endorsers to avoid promoting illegal activities. By 2024, violative advertisements in the betting sector ranked among the highest, necessitating stringent guidelines. This aligns with broader efforts to ensure accountability in endorsements.
Best Practices for Advertisers
To navigate this rapidly evolving landscape, advertisers must:
- Stay updated on advertising laws;
- Revamp practices to align with guidelines;
- Substantiate claims with evidence;
- Ensure digital platform designs comply with regulations;
- Maintain records of advertising claims and their supporting materials.
Additionally, advertisers should conduct regular audits of their promotional materials, ensuring compliance with both overarching and sector-specific guidelines. Building consumer trust is not only a legal obligation but also a competitive advantage in the saturated advertising market.
The Role of Technology and Self-Regulation
Technological advancements in ad-tech demand self-regulation by industry players. Platforms must integrate mechanisms to filter misleading content proactively. Collaboration between regulators and advertisers can foster an ecosystem that prioritizes consumer welfare while encouraging innovation.
The advertising ecosystem in India is undergoing a transformative phase. The comprehensive frameworks introduced in 2024 signify the regulators’ commitment to fostering accountability and safeguarding consumer rights. With digital marketing claiming a 55% share of advertising spends by 2025, adhering to these guidelines is not only a compliance necessity but also a strategic move to build lasting consumer relationships.
