Can consumer complaints be filed against misleading online ads?

In the digital age, online advertisements play a crucial role in consumer purchasing decisions. However, when ads are misleading, exaggerated, or make false claims about products or services, it can lead to consumer frustration, financial loss, and a breach of consumer rights. The Consumer Protection Act, 2019 allows consumers to file complaints against misleading online advertisements and seek remedies like refunds, compensation, and even corrections to the misleading ad. Consumers can also approach organizations like the Advertising Standards Council of India (ASCI) to resolve such issues. Here’s how consumers can protect themselves against deceptive advertising.

What Constitutes a Misleading Online Advertisement?

A misleading advertisement is one that:

• Makes false claims: For example, claiming a product can do something it cannot, such as cures all ailments when it is not scientifically proven.
• Exaggerates the benefits: Ads that exaggerate the effectiveness of a product or service to induce false consumer beliefs (e.g., lose 10kg in 5 days).
• Omissions: If important information is withheld, such as hidden costs, side effects, or limitations of a product (e.g., free trial but the hidden subscription fee isn’t disclosed upfront).
• Deceptive comparisons: Ads that compare products to a competitor’s product in a misleading or unfair manner (e.g., falsely claiming that a competitor’s product is inferior).
• False endorsements: Ads that falsely claim celebrity endorsements or testimonials that are not genuine.

Procedure for Filing a Complaint Against Misleading Online Ads

Step 1: Contact the Advertiser or Seller

Initially, try to resolve the issue by contacting the advertiser or business directly. If the ad led you to make a purchase or decision based on false claims, inform the advertiser and request a refund, compensation, or correction of the misleading ad.

Keep a record of communications with the business, including emails or letters where you requested a resolution.

Step 2: Document the Misleading Ad

Gather all evidence related to the misleading advertisement:

• Screenshots or recordings of the ad, including the date and time it was viewed.
• Transaction receipts or proof of purchase to show that you were influenced by the ad.
• Expert opinions or reports (if applicable) to prove the ad’s claims were false or misleading.
• Ensure that the evidence clearly links the misleading advertisement to the purchase decision.

Step 3: File a Complaint with the Consumer Forum

If the advertiser or business does not resolve the issue, you can file a complaint with the consumer forum.

The forum could be:

• District Consumer Forum (for claims up to ₹1 crore).
• State Consumer Commission (for claims between ₹1 crore and ₹10 crore).
• National Consumer Commission (for claims exceeding ₹10 crore).

The complaint should be filed online or in person at the appropriate forum. Attach all the relevant documents and evidence to support your claim.

Step 4: Pay the Complaint Fee

A nominal filing fee will be required when submitting your complaint, which varies based on the value of the claim. The fee is typically around ₹100 to ₹200.

After submitting the complaint, the consumer forum will send a notice to the advertiser or the business asking for a response.

Step 5: Attend the Hearing

A hearing will be scheduled by the consumer forum, where you will present your case and the business will provide their defense.

Present all evidence including screenshots, purchase receipts, and any communications. The advertiser may attempt to justify the ad, but the forum will assess whether the ad constitutes false advertising or unfair trade practices.

Step 6: Await the Decision

Once both sides have presented their cases, the consumer forum will issue a judgment. The potential outcomes include:

• Refund: If the consumer can prove that they made a purchase based on a misleading ad.
• Compensation: For any loss or inconvenience caused by the misleading ad.
• Corrective action: The forum can order the business to correct or withdraw the misleading advertisement.
• Penalties: If the business is found guilty of misleading advertising, the forum may impose a fine or penalty.

Step 7: Enforce the Decision

If the business does not comply with the decision of the forum, consumers can take further legal action to enforce the judgment.

Consumers can also file a contempt petition if the company does not comply with the consumer forum's order.

Alternative Option: Approach the Advertising Standards Council of India (ASCI)

The Advertising Standards Council of India (ASCI) is an independent self-regulatory organization that oversees the advertising industry in India. If you come across a misleading ad, you can file a complaint with ASCI, and they will:

• Investigate the advertisement.
• Issue guidelines for the advertiser to correct or withdraw the misleading ad.
• Make the findings public and notify the relevant authorities if necessary.

You can file complaints through ASCI’s online complaint portal.

Documents and Evidence Required for Filing a Complaint

To file a complaint, ensure you submit the following documents:

• Screenshots or video recording of the misleading advertisement.
• Proof of purchase: Receipts, invoices, or transaction details showing the product or service bought based on the ad.
• Correspondence records: Emails, letters, or messages exchanged with the advertiser or seller regarding the issue.
• Expert opinions or statements (if applicable), such as reviews or reports proving the ad's claims were false.

Example

A consumer sees an ad for a weight loss supplement on social media. The ad claims that users will lose 15 kg in one month without changing their diet or exercise routine. After purchasing the product, the consumer notices no change in weight and discovers the claims were not scientifically backed.

• Step 1: The consumer contacts the advertiser and requests a refund, but the company ignores the complaint.
• Step 2: The consumer screenshots the ad and gathers purchase proof and health reports showing no weight loss.
• Step 3: The consumer files a complaint with the District Consumer Forum under the Consumer Protection Act, 2019.
• Step 4: The consumer forum schedules a hearing. The consumer presents the evidence of the misleading ad and purchase.
• Step 5: The forum orders the company to refund the purchase price and pay compensation for the inconvenience caused by the false claims.

Conclusion

Consumers have strong legal protection under the Consumer Protection Act, 2019 to take action against misleading online ads. Whether through consumer forums or ASCI, consumers can seek refunds, compensation, and correction of deceptive advertisements. By following the complaint process and providing strong evidence, consumers can hold businesses accountable for false or exaggerated advertising claims.