To avoid misleading advertisements to consumers, the government is bringing a new Consumer Protection Act 2019. This new law will come into effect from July 20th. The new law provides for action on misleading advertisements. The Central Government has released the notification of Consumer Protection Act 2019. This law will replace the Consumer Protection Act. Companies may be fined for displaying fake advertisements such as making blonde, increasing height or getting rid of obesity.
How much will the fine be for misleading and fake advertisements?
Companies are being fined up to 1 lakh rupees and imprisonment for 6 months for showing advertisements with false promises to make the body attractive. If a person is harmed by the company’s product, then the company will be fined for up to 5 lakh rupees with an imprisonment for 7 years. At the same time, if the consumer dies, then the company is being fined up to 10 lakh rupees and imprisonment for 7 years.
What are the provisions now?
The provisions of fine in the law right now are insufficient to prevent companies from making such misleading claims. Currently, advertisements like this can lead you to be jailed for up to 6 months. Alternatively, jail and fine may also be charged. On the other hand, if found guilty for the second time or more, there can be a jail term of up to 1 year or fine, or both. There is no provision for bargaining on the penalty amount, once found guilty.