Govt plans watchdog to check misleading ads

NCPA to monitor and penalise companies that make misleading claims in their advertisements.

The government is setting up a National Consumer Protection Agency (NCPA) to monitor and penalise companies that make misleading claims in their advertisements.

The NCPA,under the consumer affairs ministry,would be empowered to take severe action,including recall of the product and slapping cases against the firms. At present,the Advertising Standard Council of India (ASCI),a self-regulatory voluntary organisation of the advertising industry,deals with such complaints.

ASCI does not have any executive powers to enforce its decisions. NCPA will be given executive as well as suo motu powers to take action against the erring companies, a senior ministry official said. It will deal with misleading claims made by various companies in their print,television and radio advertisements, he added.

Story continues below this ad

The NCPA would have the power to investigate a claim made by a company,either based on a consumer complaint or on its own. If found guilty,the NCPA could ask the company to immediately withdraw its advertisement. The firm would be asked to produce proof to substantiate its claim,failing which the NCPA could order recall of the product from the market.

The move to set up the NCPA was triggered by the increasing number of consumer complaints against misleading and exaggerated claims in advertisements.

Many consumers are fooled by the tall claims made by companies. They have to go to court to seek redressal,which may take a long time. The NCPA will be able to investigate and file cases against such companies in the national consumer forum for speedy redressal, said another official.