What Are The Advertising Standards For E-Commerce?

Cyber and Technology Law

E-commerce has revolutionized the way consumers shop, providing convenience and a vast selection of products online. However, the growth of online marketplaces has also led to challenges related to advertising ethics, accuracy, and consumer protection. To maintain trust and fairness, regulatory bodies have established specific advertising standards for e-commerce platforms and sellers. These standards aim to ensure that all marketing communications are truthful, clear, and not misleading, thereby protecting consumers from deceptive practices and promoting fair competition.

Key Advertising Standards for E-Commerce:

Truthful and Accurate Product Descriptions

E-commerce sellers must provide precise, verifiable product information, including specifications, features, pricing, and availability. Misrepresentation or exaggeration is strictly prohibited.

Clear Disclosure of Offers and Discounts

Promotions, discounts, and special offers should be clearly stated with applicable terms and conditions. Hidden charges or misleading pricing tactics are not allowed.

Compliance with ASCI Guidelines

Advertising on e-commerce platforms must adhere to the Advertising Standards Council of India (ASCI) codes, including influencer marketing norms and prohibitions on deceptive advertisements.

Avoidance of Misleading Claims

All claims related to product efficacy, benefits, or comparisons with competitors must be substantiated with credible evidence to prevent consumer deception.

Transparency in Seller Identity and Ratings

Platforms should ensure that sellers provide authentic information and that user ratings and reviews are genuine to aid consumers in making informed choices.

Fair Return and Refund Policies

Clear communication of return, refund, and cancellation policies is mandatory to protect consumer rights. Ambiguous or unfair terms are disallowed.

Protection of Consumer Data and Privacy

E-commerce platforms must follow data protection laws and clearly inform consumers about how their data is collected, used, and secured during advertising and transactions.

Monitoring and Redressal Mechanisms

Platforms should have mechanisms to monitor advertisements for compliance and swiftly address consumer complaints regarding misleading or false ads.

Impact on Consumers and Businesses:

Builds consumer confidence in online shopping.
Encourages ethical business practices among sellers.
Reduces fraudulent activities and false advertising complaints.
Promotes a competitive marketplace based on fairness and transparency.

Example:

An online marketplace lists a laptop with a 50% off discount banner. However, the original price shown is artificially inflated, misleading consumers about the actual savings.