Swastik Ayurved Pharma Limited is one of the largest producers of Herbal and Ayurvedic products in India. To expand its market share, Swastik regularly advertised the claimed benefits of its products. These advertisement

CS Executive · Economic, Commercial and Intellectual Property Laws · PYQS · June 2025
Swastik Ayurved Pharma Limited is one of the largest producers of Herbal and Ayurvedic products in India. To expand its market share, Swastik regularly advertised the claimed benefits of its products. These advertisements promoted the products as having medicinal properties and the ability to cure ailments without side effects. However, the advertisements lacked any scientific evidence to support such claims. Relying upon these advertisements, Rajeev, a consumer, purchased the products. The products, however, turned out to be ineffective and did not match the claims made in the advertisements. Rajeev, the complainant, lodged a complaint with the Secretary, Ministry of Health, Government of India, alleging that the advertisements released by the company were misleading, false, and deceptive, intended to misguide the general public, and in violation of the Consumer Protection Act, 2019, which mandates that advertisements must be truthful and not misleading. Further, the Advertising Standards Council of India (ASCI) also found the advertisements to be misleading and in violation of its regulations. It was contended that the company and its directors should be held liable for such misleading and deceptive advertisements. The case was ultimately referred to the Supreme Court under Article 136 of the Constitution of India by way of a special leave to appeal. From the above case study, answer the following questions as per the provisions of the Consumer Protection Act, 2019: Whether the false, misleading and deceptive advertisement may be treated as unfair trade practice? Explain in detail.

Answer & Explanation:

According to Section 2(47) of the Consumer Protection Act, 2019, Unfair Trade Practice means a trade practice which, for the purpose of promoting the sale, use or supply of any goods or for the provisions of any service, adopts any unfair method or unfair or deceptive practice including any of the following practices, which are related to the false, misleading and deceptive advertisements under the Consumer Protection Act, 2019: Making any statement, whether orally or in writing or by visible representation including by means of electronic record, which- Falsely represents that the goods are of a particular standard, quality, quantity, grade, composition, style or model; Falsely represents that the services are of a particular standard, quality or grade; Represents that the goods or services have sponsorship, approval, performance, characteristics, accessories, uses or benefits which such goods or services do not have; Makes a false or misleading representation concerning the need for, or the usefulness of, any goods or services; Permitting the publication of nay advertisement whether in any newspaper or otherwise, including by way of electronic record, for the sale or supply at a bargain price of goods or services etc. Accordingly, if any advertisement which attracts the consumer, will be deemed misleading and violative of the Consumer Protection Act, 2019, which mandates that all advertisements must be truthful and not misleading or deceptive to the public. Further, such false, misleading and deceptive advertisements also violates the advertising standard Council of India regulations.

Topics: Consumer Protection Act, 2019

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