False And Misleading Advertisements By Priyal Chaturvedi & Jai Pal Chaudhary

LAW MANTRATHINK BEYOND OTHERS (National Monthly Journal, I.S.S.N 2321-6417)

False and misleading advertisements: Effect on women purchasing behaviour *Priyal Chaturvedi & Jai Pal Chaudhary

Abstract Advertising is an important and legitimate means for a seller to awaken interest in his products. Advertising industry in India is on the expansion spree for the last few years and has become a serious and big business growing at an increasing rate. However, the growth of this industry is affected by the prevalent malpractices carried out by advertisers in order to lure the consumers and sustaining an edge over the competitors. Though advertising in today's media has a positive contribution to make, one needs to recognize that advertising has immense manipulative power and capacity to harm the consumer and the public interest. Unscrupulous and excessive advertising not only leads to increased distribution costs, resulting in increased selling price, but also tends to tempt the buyer to buy what he does not necessarily need. Today the produce, sellers have started targeting women as the major consumers. Most of the products today are women – oriented. . On observation whether the product is women oriented, domestic oriented or children oriented, every item targets women as it is she who chooses either of the products. Thus ¾ of the products are consumed by women. Through this research, the authors would try to focus on the misleading advertisements and the impact of such advertisements on the women’s purchasing behaviour also focusing on the statutory provisions for the regulation of misleading advertisements in the Monopolies and Restrictive Trade Practices Act, 1969 (MRTP Act), and the Consumer Protection Act, 1986 .

INTRODUCTION In the present difficult economic environment, obtaining and maintaining the market share in the consumer, the industry is more competitive than ever. It is not surprising that this environment gave rise to claims that a competitor has crossed the line of honest to unfair competition through the use of misleading advertising and promotion. Misleading advertising regulation is intended to ensure that advertisements do not distort the facts concerning the product and mislead the purchaser through the subtle implications, omissions and false statement about the quality, quantity, characteristics, or other characteristics of the product or service. The fundamental question that arises is that what makes a misleading advertising? In India, the legal provisions for the regulation of misleading advertising are contained in the Monopolies and Restrictive Trade Practices Act, 1969 (Act MRTP) and the protection of the consumer,1986 (CPA) Act.

Measures regulatory to deceive announcement CP Act and

MRTP Act are similar to a certain extent. Under legislation, a deceptive or misleading, advertising amounts to the unfair trade practices (UTP). On the other hand, the regulatory measures in the two major consumer protection laws are applicable to goods and services, and public and private compnies. The legal provisions for the regulation of advertising of medicines and remedies magical misleading contained in die Drugs and Magic remedies (objectionable advertisements) act 1954. In India, section MA of MRTP Act, provides a comprehensive definition of UTP. An identical definition appears in Section 2(r) of the CPA. Thus the concept of unfair trade practice under the two -legislations is the same. The mechanism of regulation of the UTP under both the Acts is something different, a UTP with regard to advertising, refers to any method of unfair competition or deceptive practices adopted to promote the sale, use or supply of goods or the provision of any service. Below mentioned three advertising practices are particularly specified as unfair trade practices: • Make statements about false and misleading ads.

• Offer pseudo discounts or the bargain price. • Realization of psuedo sales promotion An ad is simply a public notice to transmit information and invite sponsorship or some other responses. However where there is freedom of expresson and communication, it depends largely on advertisers to ensure that environmentally sound practices of ethics in their profession. Advertiseent has two fundamental objective, inform and persuade, and- although these goals are distinguishable-ambos arepresent simultaneously.

Indian Women as consumers : a paradigm shift

The process of consumption has long been associated with sex and gender, thus it is no surprise that consumer researchers often examine the effects of these variables on consumer behaviour. Men and women are different consumers.1 Paco Underhill who researched retail shopping over 20 years mentioned in his book in his book “why we buy: The science of shopping”, Men are less predictable than women. He said for example, men move faster between the shelves of retail shop and as a rule they don’t like to ask personnel for help. He pointed out some of research statistics where in 65 % of men who try something on also buy it; only 25% of women do the same. 86% of women look at product’s price tag dewing the purchasing process, whereas only 72% of men do that. Men are more easily influenced by salient displays and children’s requests (men can’t say “no” to children). From this, it is clear that men are emotional in purchase while women are rational in it.

Numerous studies have been made to assess the attitude and behaviour of the women, about misleading advertising, since women are the long-standing customers and a large contribution in the disposable income of the society Therefore, the business people and the dealer used the application of the technology for increased advertising their products. Researchers claim that use of tactical manipulation in ads for gaining the attention of the consumers can be thwarting to the audience.

1

. T. Ravikumar “ADVERTISING VALUES IN VISUAL MEDIA ADVERTISEMENTS AND WOMEN CONSUMERS BUYING BEHAVIOUR IN CHENNAI CITYIRACST”-International Journal of Research in Management & Technology (IJRMT), Vol. 1, No. 2, December 2011

Fraud in advertising is not a new question. Large-scale studies in human behaviour toward advertising were carried out Moreover, some research studies have been conducted for examining the behaviour of women towards social and ethical issues over the past several years and deception and other unethical perceptions of advertising inversely effects the responses towards the ads. More than 50% students think that ads are misleading, ridiculous, and insult people intellectual. In the Indian context , it is perceived that ads have a positive impact on women be it a beauty product ad , an ad for Fast moving consumer goods. We have moved to an era where the media is growing rapidly and in return people are responding and changing their life styles , attitude, behaviour, culture and religious values. Channels are full of ads like whitening soaps, hair shampoo, hair and facial lotions etc. but mostly products ads are misleading or deceptive. Now, each business targets the women keeping in mind women’s perception and that they use the deceptive practices in their ads. But advertising has a positive contribution, it must be recognized that advertising has a tremendous force time and its ability to turn into danger for consumers and the general interest, without scruples and excessive advertising leads not only an increase in the cost of distribution, what happens in a larger selling price, but also tend to try the buyers buy what he does not necessarily need. Vance Packard, one of the most vehement/ardent critics of advertising, has rightly pointed out the manipulative and misleading effects of advertising.

Large-scale efforts are being made, often with an impressive success, to channel the buyer's thought processes and purchasing decision by the use of insights gleaned from psychometry and social sciences, with the result that many of us are being influenced and manipulated far more than we realize, in the patterns of our everyday lives.2 Indian market has been witnessing changes in character and complexity of advertising. These changes involve a higher reach of mass media, particularly due to an increased penetration of satellite channels, availability of a greater assortment of products and services, a higher level of consumer spending on items other than basic necessities, and more discerning choice behaviour

2

'Packard, Vance (1957). The Hidden Persuaders, New York: Pocket Books

exhibited by consumer preference for better value for money spent on products and services. A gradual development of the economy has indeed influenced these changes 3

The Indian woman today has come a long way since the past years She is no longer is explained solely by her husband

or her domestic role she plays . Schools and companies

alike have opened their doors to her. She works, she parents, she leads, she chooses.

Most of the products today are women – oriented. . On observation whether the product is women oriented , domestic oriented or children oriented , every item targets women as it is she who chooses either of the products. Thus ¾ of the products are consumed by women. Therefore the probability of being caught in the shackles of misleading advertising of women is too high. The techniques of advertising used by the marketers and manufacturers to persuade women are exploitative and corrupt. They attempt to move them to act in certain ways without even their being fully aware that they are being swayed. The techniques involved here include showing certain products or forms of behaviour in superficially glamorous settings associated with superficially glamorous people; in extreme cases, it may even involve the use of subliminal messages.4

3

Yogi C. Impact of TV Advertisement on Purchasing Psychology of Adolescent. 2011 Jan [Cited on March 14 , 2014 ]Available from: http://www.studymode.com/essays/ Impact-Of-TV-Advertisement-On-Purchasing542531.html 4

Dr Asha Nagendra, Dr. Sudhir Agrawal, ADVERTISEMENT CLAIMS GROW TALLER! A STUDY OF ETHICS IN ADVERTISING BY FMCG COMPANIES IN INDIA 2010 International Conference on Economics, Business and Management IPEDR vol.2 (2011) © (2011) IAC S IT Press, Manila, Philippines

Encounter of women with the deceptive advertisements

Advertising is widely criticised not only for the role it plays in selling the product but also for the way it influences our society. In the era of cut throat competition, the advertisers resort to certain practices such as puffery, deception which leads to misleading advertising. The consumers are being led up the garden path by manufacturers of various products, making tall claims in advertising5. Some of the prominent deceptions created and later encountered by the females of the country are mentioned below:6



Dove Treatment shampoos Hindustan Unilever’s TV commercial on Dove Treatment shampoo that claimed to be more effective than ordinary antidandruff shampoos. According to ASCI, the claim that ordinary anti-dandruff shampoos make your hair dry and rough was

not

supported by any valid research or tests and had no authenticity. The claim was disparaging to all other antidandruff shampoos and so the advertisement was withdrawn7. 

Complan: The advertisement claimed that by consumption of the product that one can grow two times after taking Complan was said to be misleading and violative of Section 24 of FSS Act, 2006.



Horlicks: The claim in the commercial that after taking Horlicks, children become ‘taller, stronger, sharper’ was again said to be deceptive in nature as it violates Section 24 of FSS Act, 2006.

5

Kamery, Rob H, Sarah T, Cayce R. Ethical and socially responsible advertising: can it be achieved? Academy of Marketing Studies Journal. 2002 Jan; (6):1-2. Available from: http://www.freepatentsonline.com/article/Academy-Marketing-Studies-Journal/166751797.html 6

Priyanka Singh , Vijay Thawani , Alok Saxena , Deceptive Food Advertisements in India Indian Journal of Basic and Applied Medical Research; December 2013: Vol.-3, Issue-1, P.132-135 132 7 http://www.hul.co.in/brands-in-action/detail/Damage-free-hair-with-Dove/300396/



Emami - healthy and tasty soyabean oil: The label Contained a logo/picture in which it is written ‘7 stage European refining technology, ‘Suraksha Shakti’ which are violating Clause 2.3.1.5.of FSS (Packing and Labelling) regulations, 20118.



Saffola: Here in the ad the use of heart symbol and the claim ‘the heart of a healthy family’ Saffola encourages you and your family to take care of your heart by using less oil and low saturated fat diet, and ‘use of word losorb technology’ etc on the advertisement was declared to be misleading in nature.9



Kellogs special K: The claim that “research shows that people, who eat low fat breakfast like Kellogg’s Special K, tend to be slimmer than those who don’t was again said to be misleading and deceptive in nature.



Bournvita little champs: The producer claimed the presence of DHA in product and its benefits which are not proved. This is deceptive in nature yet again.

Findings suggest that the health value of a product in advertising and on the label were different. Food Safety and Standards Act (FSSA) states that any nutrition value by visual, written, as well as orally has to be backed by scientific data 10. The concept of gender marketing of foods is gaining momentum, especially when it comes to those targeted at health conditions. Special K cereal and Diet Coke are sold as ways to keep slim for women, while healthy cooking oils are directed at men to keep the heart attacks at bay. Marketing for probiotics is also directed towards women. The conclusion we can draw from these products is that all of these products were in some way or the other targeted towards the women be it Kellogs Special K or Horlics for the children and this shows that the marketers consider women gullible and so such frivolous claims.

8

http://www.fssai.gov.in/Portals/0/Pdf/Food%20Safety%20and%20standards%20%28Packaging%20and%20Lab elling%29%20regulation,%202011.pdf 9

. Rajendra Diwe. Health foods Complan, Horlicks, Saffola’s wrong claims exposed. 2012 Dec 6 , Available from: http://truthdive.com/2012/12/06/health-foods-complan-horlicks-saffolas-wrong-claims-exposed.html 10

Ratna Bhusan. Product claims made by advertisers growing taller. ET Bureau. 2010 Sept 15. Available from: http://articles.economictimes.indiatimes.com/2010-09-15/news/27594953_1_health-drink-food-andbeverageadvertising- advertising-standards-council

Conclusion Although a legal framework for the implementation indicating unfair, fraudulent and misleadi ngadvertising in India it it takes almost tirelessly practice. Consumers should their rights agai nstbusinessmen without scruples in this practice and which in turn claim the notice of prosecution cases, the role of a guardian of the public interest.

Presently there are numerous regulations monitoring the display of obscene and misleading advertisements in India. However still it is not uncommon to see various advertisements that are patently false and misleading promoting dubious products and making unsubstantiated claims. In reality, most of these ads are ignored by the consumers and go unnoticed by the statutory bodies. So, in order to enforce the regulations the need of the hour is whenever an advertisement breaches public confidence, the regulators should take immediate action against the violators. It is crucial that ASCI should be given a binding force for regulating all kind of advertising modes such as print, electronic etc. similar to the existing television advertisements which will prevent the newspapers and advertising agencies from violating the existing law. All those who are involved in commissioning and disseminating the advertisements should eliminate its socially harmful aspects and observe high ethical standards in regard to truthfulness, human dignity and social responsibility. Besides avoiding abuses, advertisers should also undertake to repair the harm sometimes done by advertising, as far as possible: for example, by publishing corrective notices, compensation for the victims, increasing the quantity of public service advertising, and the like. This question of ‘reparations' is a matter of legitimate involvement not only by industry self-regulatory bodies and public interest groups, but also by public authorities.

References

http://edition.cnn.com/2011/OPINION/08/08/swinson.airbrushing.ads/ http://www.ascionline.org/ http://www.statista.com/statistics/233493/digital-advertising-revenue-in-india-from-2011/