False or deceptive advertising

advertising carries several responsibilities as it is one of the most vital tools in marketing communications and involves not only informing but also caters to persuasion. It informs the public so that they can be aware of products/services and make informed choices among different products or brands. Advertising also benefits businesses in assisting them to sell their brands.

But while dispensing its role advertising has also been in the vertex of controversies. Deceptive advertising, also known as false advertising, refers to using of confusing, misleading, or blatantly untrue statements when promoting a product. It is accused of encouraging materialism and consumption, of stereotyping, of causing us to purchase items for which we have no need, of taking advantage of children, of manipulating our behavior, using sex to sell, and generally contributing to the downfall of our social system. Advertising does not function in a vacuum but in a market environment where several factors like consumer needs, business interests and government regulations are at work. Moreover the high visibility and pervasiveness generates criticism and controversy. Much of this controversy comes from the fact that advertising is used more as a persuasive communication tool thereby creating serious impact on the tastes, values and lifestyles of society at large.

The advertising trends have been greatly impacted by rising awareness on consumer rights and protection. The influence of advertisements on consumer choice is undeniable. And it's this fact that makes it imperative that advertisements should be fair and truthful. Misleading and false advertisements are not just unethical; they also affect competition and consumer choice. A false and misleading advertisement in fact violates several basic rights of consumers: the right to information, the right to choice, the right to be protected against unsafe goods and services as well as unfair trade practices. Since advertisements are basically meant to promote a product or a service, one does see some exaggeration in the way they extol the virtues of the product. But when it goes beyond that and deliberately utters a falsehood or tries to misrepresent facts thereby misleading the consumer, then it becomes objectionable.

There are legislations affecting advertising in India like the Consumer Protection Act; The Monopolies and Restrictive Trade Practices (MRTP) Act; Drugs and Cosmetics Act etc. Even the self regulatory bodies like Advertising Standards Council of India (ASCI) and Advertising Agencies Association of India (AAAI) etc guides the advertisers in their commitment to honest advertising and fair competition in the market place.

The Federal Trade Commission (FTC) defines Deceptive Advertising as "a representation, omission or practice that is likely to mislead the consumer and practices that have been found misleading or deceptive in specific cases include false oral or written representations, misleading price claims, sales of hazardous or systematically defective products or services without adequate disclosures, failure to disclose information regarding pyramid sales, use of bait and switch techniques, failure to perform promised services, and failure to meet warranty obligations".

For example when an edible oil advertisement gives you the impression that you are free of heart problems so long as you are using that particular oil, then it is misrepresenting facts.

When an advertisement of a water purifier that filters only bacteria (and not viruses) claims that it gives 100 per cent safe water, then it is a false statement. When a mobile operator promises STD calls for 40 paise per minute, but omits to say that this rate is applicable only when calls are made to another mobile of the same company, then it constitutes misrepresentation. Similarly, when an advertiser or a manufacturer makes a claim about a product, he should be able to prove it. Or else, it becomes a false statement. Similarly, if an advertisement for a detergent says that it can remove grease in just one wash- it should be able to do just that and the manufacturer should be able to prove this. Or else, it is an incorrect statement or a false advertisement.

In deceptive advertising Puffery�and disparagement plays a crucial role as it refers to exaggerating of facts a brand claims. Puffery is defined as 'advertising or other sales representations, which praise the item to be sold with the subjective opinions, superlatives or exaggerations, vaguely and generally, stating no specific facts' and disparagement occurs 'when a advertiser intentionally and misleadingly presents an identifiable competitor in negative light so as to establish the superiority of its brand'.

Even the increasing role of advertising in the consumer goods market with multiple players has resulted in the phenomenon of comparative advertising, wherein a seller attempts to derive pecuniary benefit by drawing a comparison between his product or service and that of a competitor. Comparative advertising may be restricted to simple puffery, which involves the seller making superlative statements of opinion about the utility of his own product. In case such puffery crosses the limits of tolerance by depicting an identifiable competing product in a negative manner, the same amounts to denigration of the other product. With the courts having prohibited both active and implied denigration, it is important to arrive at a broadly uniform standard to regulate comparative advertising activities keeping in mind the interests of the associated parties. The increasing significance of consumer protection in recent years has meant that the consumer is as much a stakeholder in any scheme of regulation as the seller or competitor.

Hence, Deceptive advertising can be at best for a short tenure however it does create damage to the company once the deceit is revealed to the public.