ABSTRACT
This paper investigates the regulatory landscape surrounding misleading advertisements and celebrity endorsements in India, with emphasis on Section 21 of the Consumer Protection Act, 2019 (CP Act, 2019). It examines the growing role of influencers in digital marketing, the contributions of self-regulatory bodies such as the Advertising Standards Council of India (ASCI), and the enforcement challenges that persist, particularly on social media platforms. The discussion engages with the ongoing tension between self-regulation and statutory control, while analysing landmark case laws that expose existing legal shortcomings. The study further puts forth recommendations for reform, advocating stronger consumer protection measures. Drawing from statutory frameworks, regulatory guidelines, and judicial rulings, it argues for a balanced regime that ensures accountability while preserving creative freedom in advertising. The paper ultimately highlights the necessity of harsher penalties, robust digital monitoring systems, and more precise guidelines for endorsers to address current regulatory gaps.
INTRODUCTION
In the age of digital media and influencer-driven content, advertising has expanded beyond traditional print and television to dynamic social media campaigns that rely heavily on celebrity endorsements for enhanced visibility. While this transformation has increased consumer engagement, it has also heightened the risks of misleading claims that can deceive the public, resulting in financial losses, health hazards, and diminished trust in the marketplace. With its vast consumer base and rapid digital growth, India faces pressing challenges in addressing these concerns.
The Consumer Protection Act, 2019, marks a significant milestone in the evolution of consumer rights in India, replacing the Consumer Protection Act, 1986, to respond to modern realities such as e-commerce and online advertising. Under Section 21 of the 2019 Act, the Central Consumer Protection Authority (CCPA) is vested with the power to investigate and sanction misleading advertisements. The provision extends liability to manufacturers, advertisers, and endorsers, prescribing penalties of up to INR 10 lakh for a first offense and up to INR 50 lakh for repeat violations, in addition to potential bans on endorsements for a period of up to three years.
Celebrity endorsements introduce an added layer of complexity, as influencers and public figures exert significant persuasive influence over consumers. According to an ASCI report, more than 80% of misleading advertisements in 2023–24 originated on digital platforms, often involving influencers who failed to disclose paid collaborations. Weak enforcement mechanisms on social media further aggravate the issue, allowing misleading content to spread rapidly before regulators can intervene. This scenario has fuelled an ongoing debate on whether industry self-regulation, through bodies like ASCI, is sufficient or whether stronger statutory measures are necessary.
This paper seeks to examine these dynamics in detail: the statutory framework under the Consumer Protection Act, 2019, the growing influence of digital endorsers and advertising codes, gaps in enforcement on social media platforms, the tension between self-regulation and legal regulation, relevant judicial precedents, and the need for targeted reforms. By integrating statutory interpretation, judicial analysis, and policy-oriented insights, it aims to enrich the discourse on strengthening consumer protection within India’s advertising landscape.