How to file complaints against misleading price advertisements?

Misleading price advertisements are a form of false advertising where businesses claim products or services are being sold at a discounted price, while the price is either inflated, inaccurate, or not reflective of the actual market value. Such deceptive practices mislead consumers into making purchases they otherwise wouldn't have. The Consumer Protection Act, 2019 provides a robust framework for consumers to challenge misleading advertisements, including those related to pricing errors or unsubstantiated discount claims. Consumers are entitled to seek compensation and corrective action if they fall victim to these unfair practices.

Steps to File Complaints Against Misleading Price Advertisements:

1. Identify the Misleading Advertisement
   • Determine the Nature of Deception: Verify whether the advertisement:
     • Displays inflated prices as a comparison for discounts.
     • Advertises a product or service at a price that is either not available or based on false claims.
     • Doesn't match the advertised price at checkout or during purchase.
   • Evidence: Collect all the evidence related to the misleading advertisement, including:
     • Screenshots or copies of the advertisement (e.g., print, online, TV).
     • Price difference (advertised vs. actual selling price).
     • Any communication with the seller or business confirming the pricing issue.
2. Approach the Seller or Advertiser Directly
   • Inform the Seller or Business: Contact the seller or business involved in the misleading advertisement. Provide them with the evidence and ask for:
     • Clarification regarding the pricing discrepancy.
     • Refund or adjustment if you were overcharged.
   • Request Resolution: Depending on the outcome, request either a refund, replacement, or compensation for the misleading pricing.
3. File a Complaint with the Consumer Forum
   • If the business fails to resolve the issue, the consumer can file a formal complaint in the consumer forum.
   • Jurisdiction: Depending on the value of the claim, file in the appropriate forum:
     • District Consumer Forum: For claims up to ₹1 crore.
     • State Consumer Commission: For claims from ₹1 crore to ₹10 crore.
     • National Consumer Commission: For claims over ₹10 crore.
   • Documents Required:
     • Complaint letter outlining the misleading advertisement and its impact.
     • Proof of advertisement (screenshots, TV commercial, etc.).
     • Proof of purchase (invoice, receipt).
     • Communication records with the seller, if applicable.
   • The consumer forum may:
     • Order a refund or compensation.
     • In some cases, the forum can also penalize the advertiser for unethical advertising practices.
4. File a Complaint with the Advertising Standards Council of India (ASCI)
   • ASCI is the self-regulatory body for advertising in India. Consumers can approach ASCI if they believe an advertisement is misleading or deceptive.
   • File a Complaint with ASCI: Visit the ASCI website and submit your complaint under the Consumer Complaints section. ASCI has the power to:
     • Ban or modify misleading ads.
     • Direct the advertiser to issue a public apology or correction.
5. File a Complaint with the National Consumer Helpline (NCH)
   • The National Consumer Helpline (NCH) is another resource for consumers to report deceptive practices.
   • Submit an Online Complaint: Consumers can register complaints on the NCH website or via the NCH mobile app. NCH will help forward the complaint to the appropriate authority and guide you through the resolution process.
6. Report to the Competition Commission of India (CCI)
   • If the misleading advertisement involves practices that restrict competition (e.g., false claims that mislead the market), consumers may report the issue to the Competition Commission of India (CCI). This is particularly relevant if the false pricing creates an unfair market advantage.

Compensation and Remedies for Misleading Price Advertisements:

1. Refund of Overcharged Amount
   • Consumers are entitled to a refund if they were overcharged due to a misleading advertisement. The seller may be required to return the excess amount paid or adjust the price difference.
2. Compensation for Financial Loss or Inconvenience
   • If the misleading price advertisement led to financial loss or significant inconvenience, consumers may seek compensation. This could include:
     • Compensation for mental distress caused by the deceptive pricing.
     • Reimbursement for any additional costs incurred due to the deceptive ad (e.g., buying a product at a higher price than advertised).
3. Punitive Damages or Penalties on the Advertiser
   • The consumer forum or ASCI may impose penalties or fines on businesses engaging in unethical advertising. This can serve as a deterrent for future deceptive practices.
   • Public Apology or Correction: Advertisers may be ordered to publish a corrective advertisement or issue a public apology to consumers.
4. Product Replacement or Service Compensation
   • In some cases, the consumer forum may also order a replacement of the product or service if it was misleadingly advertised. This is applicable if the consumer was led to believe they were purchasing something of a higher quality or value.

Example:

A consumer sees a furniture set advertised online with a 50% discount on a website. Upon attempting to purchase the set, they notice that the actual price at checkout is significantly higher than what was advertised.

Steps the Consumer Should Take:

• Contact the Seller: Reach out to the seller with a screenshot of the advertisement and request a price adjustment or refund.
• Escalate the Issue: If the seller does not respond, escalate the issue to higher management or the customer service department.
• File a Complaint with ASCI: If the advertisement continues to run and is misleading, file a complaint with ASCI.
• File a Complaint with Consumer Forum: If the issue remains unresolved, file a formal complaint in the District Consumer Forum for a refund or compensation.

Consumer Safety Tips:

• Verify Offers: Always check the final price before making a purchase, especially when discounts or special offers are involved.
• Document Ads: Keep copies or screenshots of advertisements that you find misleading. This will help you substantiate your complaint.
• Report Early: If you notice a misleading ad, report it as soon as possible to the relevant authorities to ensure it is addressed quickly.
• Know Your Rights: Familiarize yourself with your consumer rights under the Consumer Protection Act, 2019, including protection from false advertising and misleading pricing.