India’s Consumer Watchdog: Protecting Consumers from Misleading Ads and Manipulative Practices

The landscape of advertising in India is undergoing a significant transformation, with the Central Consumer Protection Authority (CCPA) actively taking on the mantle of safeguarding consumer rights. This article delves into the CCPA’s recent efforts to crack down on misleading advertisements, greenwashing, and manipulative marketing practices, popularly known as “dark patterns.”

Cracking Down on Misleading Coaching Institute Ads and Greenwashing:

In a move to ensure transparency and ethical conduct, the CCPA recently released draft guidelines specifically targeting misleading advertisements by coaching institutes. These guidelines aim to curb unsubstantiated claims of guaranteed success rates, fabricated testimonials, and exaggerated faculty credentials often employed by such institutes. Additionally, the CCPA is taking a firm stance against “greenwashing,” where companies make unsubstantiated environmental claims to project a clean and eco-friendly image. This practice often involves the use of vague terms like “natural” or “eco-friendly” without any concrete evidence to support such claims.

Setting the Precedent: Unacademy Fined for Misleading Ads

The CCPA’s commitment to protecting consumers is not merely rhetoric. Just weeks before releasing the draft guidelines, the authority imposed a penalty of Rs 1 lakh on edtech giant Unacademy for misleading advertisements related to their civil service examination coaching program. This case serves as a strong precedent, demonstrating the CCPA’s willingness to hold even leading companies accountable for deceptive advertising practices.

Beyond Coaching Institutes: A Broader Spectrum of Action

The CCPA’s reach extends far beyond coaching institutes and edtech platforms. The authority has been actively involved in addressing various advertising malpractices across diverse industries throughout the past year.

• Combating Surrogate Advertising of Pan Masala Products: In October 2023, the CCPA issued notices to three prominent Bollywood actors, Shah Rukh Khan, Akshay Kumar, and Ajay Devgn, for allegedly promoting “Vimal Elaichi,” a product claimed to be a surrogate advertisement for banned tobacco products like zarda, gutka, and khaini. This action highlights the CCPA’s commitment to upholding the Cigarettes and Other Tobacco Products Act, 2003, which strictly prohibits the use of celebrities in tobacco advertising, even through indirect or covert means.

• Taking On “Dark Patterns” in the Digital Age: Recognizing the growing prevalence of manipulative practices employed by online platforms, the CCPA issued comprehensive guidelines in December 2023 specifically targeting “dark patterns.” These guidelines aim to regulate deceptive design elements and tactics employed by online platforms to manipulate consumer choices. Examples of such “dark patterns” include creating a false sense of urgency by claiming limited stock availability, adding unwanted subscriptions or services to carts without consent, and employing “confirm shaming” tactics to guilt consumers into completing purchases.

• Ensuring Product Quality and Consumer Rights: The Case of Cloudtail India: In August 2023, the CCPA took action against Cloudtail India, a subsidiary of Amazon India, for selling pressure cookers that lacked mandatory whistles, thereby violating the country’s quality standards. This case demonstrates the CCPA’s role in upholding consumer rights not just against misleading advertising but also against the sale of sub-standard products. Cloudtail India was ordered to recall over a thousand pressure cookers, refund customers, and pay a penalty for breaching quality standards and consumer rights.

The Road Ahead: Building a More Ethical Advertising Landscape

The CCPA’s consistent efforts are paving the way for a more ethical and responsible advertising landscape in India. By holding companies accountable for misleading claims, deceptive practices, and the violation of consumer rights, the CCPA is fostering a sense of trust and transparency between businesses and consumers. As the advertising industry continues to evolve, the CCPA’s proactive approach in addressing emerging challenges like “dark patterns” ensures that consumers are protected from manipulative tactics and empowered to make informed decisions.