Model Answer
0 min readIntroduction
Unethical marketing practices, ranging from misleading advertisements to unfair trade practices, erode consumer trust and distort market dynamics. These practices not only cause financial harm to individuals but also hinder fair competition. India has a developing legal framework aimed at curbing such practices, built around principles of consumer protection and fair trade. Recent instances of ‘surrogate advertising’ of banned products and ‘greenwashing’ highlight the ongoing challenges in effectively regulating the marketing landscape. This answer will briefly evaluate the relevant legal framework and enforcement mechanisms designed to address these issues.
Legal Framework to Curb Unethical Marketing Practices
The legal framework addressing unethical marketing in India is fragmented but comprehensive, drawing from various Acts and regulations. Key legislation includes:
- The Consumer Protection Act, 2019: This is the primary legislation protecting consumer rights. It addresses unfair trade practices, misleading advertisements, and defective products. It establishes the Central Consumer Protection Authority (CCPA) with powers to investigate, impose penalties, and recall unsafe goods.
- The Advertising Standards Council of India (ASCI) Code: While a self-regulatory body, ASCI’s code is widely referenced and influences advertising standards. It addresses issues like misleading advertising, offensive advertising, and advertising directed at children.
- The Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954: This Act regulates advertisements relating to drugs and magic remedies, prohibiting false claims and misleading representations.
- The Food Safety and Standards Act, 2006: This Act regulates food advertising, ensuring that claims made about food products are accurate and do not mislead consumers.
- The Competition Act, 2002: Addresses anti-competitive practices, including deceptive advertising that harms competition.
- The Legal Metrology Act, 2009 & Rules, 2011: Ensures accurate weights and measures in packaged commodities, preventing deceptive packaging practices.
Specific Unethical Practices and Corresponding Legal Provisions
| Unethical Practice | Relevant Legal Provision | Enforcement Agency |
|---|---|---|
| Misleading Advertisements | Consumer Protection Act, 2019 (Section 9); ASCI Code | CCPA, ASCI |
| False Claims about Products | Consumer Protection Act, 2019; Food Safety and Standards Act, 2006; Drugs and Magic Remedies Act, 1954 | CCPA, Food Safety Authorities, Drug Controllers |
| Unfair Trade Practices (e.g., hoarding, black marketing) | Consumer Protection Act, 2019 | CCPA, State Consumer Protection Departments |
| Deceptive Packaging | Legal Metrology Act, 2009 & Rules, 2011 | Legal Metrology Department |
| Anti-Competitive Advertising | Competition Act, 2002 | Competition Commission of India (CCI) |
Enforcement Mechanisms and Challenges
The enforcement of these laws is carried out by a combination of government agencies and self-regulatory bodies. The CCPA, established under the 2019 Act, has significantly strengthened enforcement capabilities. However, several challenges remain:
- Limited Resources: Consumer courts and regulatory bodies often face a shortage of resources, leading to delays in case resolution.
- Lack of Awareness: Many consumers are unaware of their rights and the available redressal mechanisms.
- Complexity of Laws: The fragmented nature of the legal framework can make it difficult to navigate and enforce.
- Digital Marketing Challenges: Regulating online advertising and e-commerce practices poses unique challenges due to the borderless nature of the internet.
- Enforcement of ASCI Code: ASCI’s code is not legally binding, limiting its enforcement power. While it can issue warnings and direct removal of ads, it lacks the authority to impose penalties.
Recent Developments & Strengthening Enforcement
The CCPA has been actively pursuing cases of misleading advertisements, particularly in sectors like healthcare and fast-moving consumer goods (FMCG). The government is also exploring stricter regulations for influencer marketing and digital advertising. The introduction of the Central Registry of Consumer Cases (CRCC) aims to improve transparency and accessibility of consumer dispute resolution data.
Conclusion
The legal framework to curb unethical marketing practices in India is evolving, with the Consumer Protection Act, 2019, representing a significant step forward. However, effective enforcement remains a challenge due to resource constraints, lack of awareness, and the complexities of the digital landscape. Strengthening consumer awareness, enhancing the capacity of regulatory bodies, and fostering greater collaboration between government agencies and self-regulatory organizations are crucial for creating a more ethical and transparent marketing environment. A more unified and streamlined approach to regulation, particularly in the digital sphere, is essential to protect consumer interests and promote fair competition.
Answer Length
This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.