ASCI and Misleading Ads

How the Advertising Standards Council of India self-regulates ads, what happens to misleading claims, and how the Consumer Protection Act adds legal penalties.

Who stops misleading ads?

ASCI

The Advertising Standards Council of India was set up in 1985 by the ad industry.
It’s a self-regulatory body.
It handles complaints and asks advertisers to modify or withdraw misleading ads.

Common issues

Exaggerated health claims.
Misleading discounts.
Hidden conditions in offers.
Influencer ads without disclosure.

Results

ASCI processes thousands of complaints a year, with many ads modified or withdrawn. Education and healthcare ads often top complaint lists.

Legal backing

The Consumer Protection Act, 2019 created the Central Consumer Protection Authority (CCPA), which can fine advertisers and endorsers.
Penalties can reach 10 lakh rupees, and up to 50 lakh for repeat offences, for misleading ads.

Dark patterns

In 2023, CCPA issued guidelines banning dark patterns like false urgency and hidden costs in online ads and apps.

Self-regulation’s limits

Self-regulation relies on voluntary compliance; legal penalties add teeth.

The coaching ad

A coaching institute claims "100 percent selection guaranteed". After complaints, ASCI and CCPA act, and the institute must withdraw the claim.

Thinking any claim in an ad is allowed

ASCI and the CCPA can act against misleading ads.

Key takeaways

ASCI self-regulates ads since 1985.
It handles thousands of complaints a year.
The CCPA can fine misleading advertisers and endorsers.
Dark patterns were banned in 2023 guidelines.