In the evolving digital landscape of 21st-century commerce, consumers are constantly bombarded with advertisements, many of which are endorsed by influencers who seem to seamlessly integrate promotional content into their everyday life. But what happens when those endorsements mislead? India’s Consumer Protection Act, 2019 (CPA 2019) comes into sharp focus here, offering stringent safeguards against false or deceptive advertising. This article explores the parameters of misleading advertisements, the expanded liabilities that influencers now face under CPA 2019, and what both businesses and content creators must know to stay compliant.
1. Defining Misleading Advertisements under CPA 2019
Under Section 2(30) of CPA 2019, an advertisement is deemed “misleading” if it:
• Makes a false representation about a product or service,
• Conceals material information that is essential for a consumer to make an informed decision,
• Or fails to caution about potential risks inherent in using the product.
This expansive definition goes well beyond simple exaggeration; the law targets omissions, deceptive imagery, use of fine print to misleading ends, and any other technique that may erode transparency. For example, if an advertisement fails to disclose that a product carries possible side effects, or if it exaggerates benefits that are scientifically unverified, it falls under the ambit of misleading promotion.
2. Channels and Modes of Misleading Advertising
CPA 2019 explicitly captures all forms of media—television, radio, print, online platforms, packaging, labels, and social media. The rise of digital marketing and influencer culture has made virtual and social media platforms one of the most potent conduits for advertisements. Influencers, whether knowingly or inadvertently, can become vessels for deceptive or incomplete information.
An influencer posting on Instagram, say, may promote a health supplement by citing miraculous benefits, while conveniently omitting disclaimers about typical results, side-effects, or the fact that those results may be atypical. Under CPA 2019, such promotion can be regarded as a misleading advertisement.
3. Newly Expanded Liability: Who Is Responsible?
Unlike earlier, more limited frameworks, CPA 2019 casts a broader net. Section 2(32) defines an “electronic service provider,” and the Act’s definition of “endorsers” now clearly includes influencers, celebrities, bloggers, and any social media user promoting goods or services.
The law creates liability not only for the manufacturer or seller, but also for:
• Endorsers or influencers,
• Advertisers and ad agencies,
• Electronic platforms facilitating the advertisement.
Essentially, anyone who delivers—or makes possible—a deceptive promotional message may be held accountable.
4. Due Diligence and Liability of Influencers
One revolutionary aspect of CPA 2019 is that influencers must exercise due diligence before sharing promotional content. They must ensure that:
• The claims they propagate are truthful and substantiated,
• Any disclaimers required by law or warranted by the product’s nature are clearly stated—e.g., “Results may vary” or “Consult a physician before use,” if relevant,
• They have appropriate evidence (clinical studies, test reports, certifications) if they make efficacy claims,
• They disclose their material connection to the brand (i.e., paid promotion).
Failure to do so can result in them being treated in the same category as the advertiser, subject to penalties.
5. Penalties and Enforcement Mechanisms
CPA 2019 establishes the Central Consumer Protection Authority (CCPA), endowed with power to launch investigations, issue orders, and levy penalties for misleading advertisements. Section 21 empowers CCPA to issue cease-and-desist directions, mandating discontinuation or correction of misleading ads.
• Entities responsible for misleading advertisements can face fines up to ₹10 lakh.
• For repeating offenses, fines may go up to ₹50 lakh.
• Officers in charge at corporate levels may also face personal liability.
Influencers are no exception—they too face investigation and penalty if found liable. Moreover, they may be blacklisted from future partnerships or forced to retract false claims publicly.
6. Illustrative Scenarios
Consider an influencer promoting a weight-loss drink, claiming “Lose 10 kg in 7 days!” without evidence, disclaimers, or mention of the unusual nature of results. If the claim is unsupported and misrepresents plausible outcomes, it is likely misleading. The influencer, the manufacturer, and the platform may all be held responsible under CPA 2019.
In another scenario, an influencer endorses a skin-whitening cream, suggesting “Safe for all skin types,” when the product may cause irritation in darker complexions. Here, omission of risk-related information and making a blanket statement becomes a misleading promotion, attracting liability.
7. Proactive Compliance Checklist
For influencers (and brands) aiming to avoid contravening CPA 2019, this checklist offers practical guidance:
1. Maintain Evidence: Always validate claims with credible data—studies, test reports, certifications. Retain documentation.
2. Disclose Partnerships: Clearly tag posts as paid promotions or collaborations—e.g., #Ad, #Sponsored.
3. Include Disclaimers: If outcomes vary or risks exist, include visible disclaimers (legible font, clear placement).
4. Avoid Absolute Claims: Steer clear of statements like “miracle cure,” or “works for everyone,” unless proven.
5. Review Content Carefully: Before posting, cross-check claims for accuracy and completeness.
6. Obtain Legal Guidance: Whenever in doubt about compliance, seek counsel or agency review.
8. Broader Implications and Responsible Influencing
The CPA 2019 framework places renewed emphasis on ethical influencing. Transparency is no longer just good practice—it’s a legal requirement. Brands, agencies, and influencers must collaborate to protect consumers and preserve trust. Responsible influencing not only shields against legal exposure but also builds long-term credibility and loyalty.
9. Challenges Ahead
While CPA 2019 marks robust progress, practical enforcement poses challenges. The sheer volume of content on social media makes monitoring difficult. Influencers frequently operate across jurisdictions and platforms. Training, awareness campaigns, and technological tools (like automated ad-monitoring software) will be critical to operationalize the law’s protections.
Conclusion
As consumer consciousness rises alongside digital marketing’s reach, the Consumer Protection Act, 2019 has timely and comprehensive provisions to curb misleading advertising. Crucially, the law recognizes influencers as de facto advertisers or endorsers whose endorsements can materially sway consumer choices. They bear real responsibility and possible penalties if found complicit in deceptive promotions.
In essence, promotional authenticity and consumer safeguarding are two sides of the same coin. Influencers—and their collaborating brands—must tread carefully, wielding their persuasive power with accountability, full transparency, and respect for consumer rights. That is not just compliance with the law, but a foundational principle of ethical digital marketing in modern India.Ultimately, adhering to these standards not only protects consumers but also strengthens the credibility and sustainability of the influencer industry itself.