Introduction
Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. In today's fast-paced, high-tech age businesses use advertising to make prospects aware of their products & services to earn profits through increasing their sales and sales turnover. To reach target markets and build brand equity in this cluttered market advertisers sometimes overstep social and legal norms. Ethical norms deal with character, norms, morals and ideals. They give an idea of what is fair or unfair or what is right and wrong.
Meaning of legal aspects of advertising
Advertising has many unethical activities such as social, economic and moral. It misleads the people by believing them what is not true. Today advertising company’s face several legal restrictions. The government has taken the proper action to pass laws to regulate advertising and protect consumer interest.
Advertising is regulated or monitored by several government bodies such as the advertising standards councils of India (ASCI) and the advertising agencies associations of India (AAAI). In 1914 the federal trade commission act come into existence to control deceptive advertising. It acts provides guidelines for ethical and unlawful advertising.
- Morality - Morality in simple word is the rules and set standards that defines what is wrong or what is right. It makes the difference between a good or bad ones. Many people criticized advertising that it is often in bad taste. It affects culture and social traditions. Government bodies monitor the advertising that it should not harm the customer morality or taste.
- Untruthful Advertising – It is true that consumers get attracted to the products and services which are of good quality but available at a cheaper price. It saves customers money and provides them extra or the same feature as compared to substitute products. These ads are truth from the customer side as they believe that the product is real but untruthful from the advertiser side because they are misleading the customers.
- Harmful effects – Advertising has a harmful effect on society, nudity, bad habits, stereotypes culture, surrogate advertising etc. effect on social or cultural traditions. The government prohibits such types of advertising.
- Restricts entry of new units – Companies require huge funds to advertise their products also existing companies have their brand value. New companies lack funds to advertise their products so it creates trouble for them to take their place in the market. The government takes care that the existing company does not exploit new companies.
Legal Aspects of Advertising Regulation law in India
Unfortunately, despite several laws meant to protect consumers against such unfair trade practices, false and misleading advertisements continue to exploit the consumer. A number of institutions are involved in regulating advertising.
These are: Regulation by the Government and Self-regulation by the industry.
- Regulation by government
- Cable Television Networks Act, 1995: This law lays down the procedure for registration of a cable television network and also regulates the programmers' and advertisements transmitted on cable network in India. The registering authority is the Head Post Master of a Head Post Office of the area within whose territorial jurisdiction the office of the cable operator is situated.
- Drugs and Cosmetics Act, 1940: The Act prescribes a fine of up to Rs. 500 for any person using any report or extract of report of a test or analysis made by the Central Drugs Laboratory or a government analyst for advertising of a drug or cosmetic.
- The Children's Act, 1960, prohibits the disclosure of names and address and other particulars of any child involved in any proceedings.
- The Indecent Representation of Women Act, 1986 forbids the depiction of women in an indecent or derogatory manner in the mass media. No person shall publish, arrange or take part in the publication which contains indecent representation of women in any form.
- The Emblems and Names Act, 1950, prohibits the use by any private party of certain names, emblems, etc.
- Motor Vehicles Act, 1988: This law affects outdoor advertisements, like bill boards, posters, neon signs, etc. The Act, grants powers to remove such advertisements which may distract drivers and have the potential of causing road accidents.
- The Drugs and Magic Remedies Act, 1954: It Prohibits advertisements for products and services claiming to cure certain medical conditions. As per the law, no advertisement should promise magical cure for any ailments or disease and the rules specify the diseases and ailments that cannot be advertised promising cure or remedies.
- The Monopolies and Restrictive Trade Practice act, 1969: In the year 1984, the government brought, through an amendment, "unfair trade practices" under the MRTP Commission. The MRTP Act has been very effective in hauling a number of advertisers to stop advertisements which are prejudicial to consumer interest through its 'cease and desist orders'.
- The Consumer Protection Act, 1986: It applies to advertisements for all products in the market place. A consumer may file a complaint related to false and misleading advertisements, which are included under the definition of unfair trade practice
- Self-regulation by the advertising industry - With the increasing criticism of advertising, advertisers have devised self-regulation to ensure true and accurate messages. Moreover, with the advent of new communication and information technologies, the national policy makers have also become less willing and less able to intervene. Since print and audio-visual media exercise the essential freedom of speech and they are financed by advertising revenues, media has always resisted curbs thereby constraining the capacity of national governments to influence media. Agencies involved in self-regulation –
- Press Council of India
- Prasar Bharti
- Individual media and media groups
- Advertising trade associations
- Advertising Standards Council of India (ASCI)
- Advertising Association of India (AAAI)
Advertisements should be truthful and fair to consumers and competitors within the bounds of generally accepted standards of public decency and propriety. Not used indiscriminately for the promotion of products, hazardous or harmful to society or to individuals particularly minors, to a degree unacceptable to society at large.
When is advertising deceptive or ethical?
The Constitution of India guarantees freedom of speech. Special restraint is needed in commercial speech including advertising. An advertisement is called deceptive when it misleads people, alters the reality and affects buying behavior. Deception exists when an advertisement is introduced into the perceptual process of the audience in such a way that the output of that perceptual process differs from the reality of the situation
These may include the following:
- Violates Consumers' Right to Information: Use of untrue paid testimonials to convince buyers, quoting misleading prices, disparaging a rival product in a misleading manner is some examples of misleading. Advertisers of anti- aging creams, weight loss programs, anti-dandruff shampoos
- Violates Consumers' Right to Safety: When an advertisement for cooking oil says that using the said oil frees the user from heart problems, then such an advertisement is misrepresenting the facts.
- Violates Consumers' Right to Choose: The recent print ad for Videocon mentions a 1-ton split-AC available for Rs. 15,990/, a very attractive offer. But there is a small asterisk which mentions three things in small font. They are:
- Conditions apply
- Prices valid in Delhi and NCR under exchange only
- Actual products may differ from those displayed in the offer.
- Advertisements directed at children: The advertisers rely on the children pester power on their parents. The ethical issues involved are advertisers try to exploit young children by advertising products that are not conducive to their health.
- Puffery: The advertisers use them to boast of the merits of their products (best, finest, number one, etc.). Even law permits trade puffing or exaggeration. But subjective statements of opinion about a product's quality are so untrue that it becomes an outright spoof and which is not true.
- Use of sex appeals: Sex appeal is used explicitly to sell all kinds of things to gain consumer attention. It is used where it is not even appropriate to the product being advertised. The corporate sector should be encouraged to eliminate the violation of women's rights online & all forms of gender-based violence.
- Bait advertising: It means taking advantage of consumer psychology and depriving consumers of a choice. For example, once the consumer enters the store, he or she is pressured to purchase another more expensive item.
- Advertising of harmful products: Advertising is not restricted to products that are good for people. According to law in India advertisements for cigarettes, pan-masala, products that are harmful to the public continues to find a place despite the ban imposed by the government.
