Protection from Unfair Trade Practices and False Advertising
Written in plain language to promote general understanding. This is educational information, not legal advice. Based on Indian central (Union) law — Constitution of India, central Acts of Parliament, and Supreme Court decisions.
Indian Central Law
What is this right?
Indian law prohibits a wide range of unfair and deceptive practices by sellers and advertisers.
- Unfair trade practices under CPA 2019 (s. 2(47)):
- False representation of product quality, quantity, or standard.
- Misleading price comparisons (false MRPs, fake discounts).
- Deceptive offers and bait-and-switch advertising.
- Offering gifts or prizes with a condition that purchasers must buy another product.
- Hoarding or destroying goods to raise prices.
- Charging excess over MRP on packaged goods.
- Misleading advertisements: The CPA 2019 (s. 21) makes the endorser (celebrity or influencer) of a misleading advertisement also liable for penalties — ₹10 lakh fine (first offence); ₹50 lakh (second offence); prohibition from endorsing for up to 3 years.
- ASCI: Self-regulatory body for advertising — complaints can be filed at ascionline.in; ASCI can ask advertisers to modify or withdraw misleading ads.
- Competition Commission of India (CCI): Anti-competitive agreements and abuse of dominant position (e.g., platforms forcing exclusive deals on sellers) are investigated by CCI.
When does it apply?
- A seller misrepresented a product's quality, quantity, or specifications.
- You were lured by a fake discount or bait-and-switch offer.
- You were charged more than the printed MRP on a packaged product.
- An advertisement made false health or performance claims.
What should you do?
- Complain to the Consumer Commission under CPA 2019 — unfair trade practices are explicitly actionable; the Commission can order compensation and direct the trader to stop the practice.
- File a complaint with ASCI online (ascionline.in) for false advertising — ASCI typically responds within 10 days and advertisers are required to address upheld complaints.
- File a complaint with the National Consumer Helpline (1800-11-4000) — a quick way to report MRP violations.
- For systematic overcharging or price-fixing, file a complaint with the CCI (cci.gov.in).
What should you NOT do?
- Do not take unfair trade practices as "normal" — even small overcharges (MRP violations) are actionable; the Consumer Commission can award compensation disproportionate to the price difference to deter future violations.
- Do not confuse the Consumer Commission with the CCI — the Commission handles individual disputes; CCI handles market-level competition issues.
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