India’s Ad Law Wrap 2024

The advertising landscape in India is no stranger to bold claims and ambitious creativity, but 2024 marked a turning point—a year when accountability caught up with imagination. Faced with mounting concerns over misleading advertisements, regulators have stepped in to draw a firm line between persuasion and deception.

Whether it’s combating greenwashing, addressing unverified medicinal claims, or holding influencers accountable for the products they endorse, India’s new advertising regulations are reshaping the way businesses communicate with consumers.

This article dives into the key advertising law updates of 2024, and why compliance is no longer optional but essential for brands aiming to build trust and credibility.

Greenwashing Guidelines

The Central Consumer Protection Authority (CCPA) issued Guidelines for Prevention and Regulation of Greenwashing or Misleading Environmental Claims, 2024 to address deceptive environmental claims in advertising. With environmentally conscious consumers becoming a significant market force, these guidelines ensure that businesses provide truthful and substantiated information about their products' environmental benefits.

Greenwashing has been defined as any deceptive or misleading practice that includes concealing, omitting, or hiding relevant information by exaggerating or falsely claiming environmental benefits. Compared to the draft Guidelines of February, the final Guidelines specifically exclude company mission statements from the definition of ‘Greenwashing.’

The Guidelines provide that claims like “100% natural” or “biodegradable” require credible third-party certification or reliable scientific evidence. Comparative claims must disclose what is being compared and rely on verifiable data. Aspirational or futuristic claims are allowed only with actionable plans for achieving the stated objectives. Data cherry-picking to highlight only favorable results is strictly prohibited. All material information must be disclosed using QR codes or URLs linking to detailed substantiation. The environmental claim must specify whether it refers to the goods (as a whole or part thereof), manufacturing process, packaging, manner of use or disposal, or the process or rendering the service.

Misleading claims can result in penalties under the Consumer Protection Act, 2019, including fines of up to ₹49 lakh (approx. $59,000) and mandatory corrective advertisements.

The Patanjali Case [1], the Ensuing Self Declarations, and a Lesson in Advertising Ethics

Patanjali Ayurved, founded by the yoga guru Baba Ramdev, emerged as a dominant player in India’s Ayurvedic and wellness markets, often blending traditional remedies with modern marketing. The brand gained immense popularity for its “natural” and “Swadeshi” products, but it wasn’t long before controversy followed.

Patanjali advertisements began making bold claims about their products’ ability to treat and cure a variety of ailments, including critical illnesses like diabetes, COVID-19, and even cancer. Such assertions were often not supported by scientific validation. These ads came under the purview of the Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954, which prohibits the advertisement of remedies for certain diseases without scientific backing.

The Indian Medical Association accused Patanjali of misleading the public and endangering lives by promoting unverified treatments as cures. Advertising Standards Council of India (ASCI) flagged several Patanjali ads for violating advertising codes. After repeated violations, the matter escalated to the Supreme Court (SC) in 2023.

In November 2023, the Court issued a stern warning to Patanjali, urging them to refrain from using phrases like “permanent relief” in their ads. However, ignoring prior cautions, Patanjali persisted with questionable claims. This led to a contempt notice from the Court in February 2024, halting all medicinal advertisements from the company indefinitely. When the company’s leadership tendered an unconditional apology, the Court dismissed it as inadequate, signaling that a mere “sorry” wasn’t enough to fix systemic issues. In May, the Court extended accountability to online platforms hosting banned ads, warning them of their complicit role in spreading misinformation. Finally, after a series of corrective measures, including public apologies and enhanced compliance protocols, Patanjali regained favor, but not without a final caution to avoid future infractions.

The fallout from the Patanjali case sparked immediate and sweeping changes across India’s advertising landscape.

Mandatory Self Declarations

Initially, the Court directed that all advertisers across all sectors submit self-declaration certificates for every ad, to validate their claims. After industry uproar, the scope of the self-declaration requirement narrowed, prioritizing the food and healthcare industries. Now, advertisers in these sectors upload their declarations to designated platforms yearly: MIB’s Broadcast Seva website for TV and Radio ads, and the Press Council of India website for print and online ads.

Celebrity Liability

Public figures, from Bollywood stars to social media influencers, can no longer plead ignorance. If they endorse misleading products, they are equally liable—a powerful deterrent against blind brand promotions.

Uniform Codes for Marketing Practices (Pharmaceuticals and Medical Devices)

In the pharmaceutical and medical device sectors, new codes of conduct have raised the bar for ethical marketing practices. The focus is on ensuring that promotional materials are scientifically accurate and free from misleading claims.

Words like “safe” or “new” can no longer be used indiscriminately. The term “new,” for example, is restricted to products launched within the last 12 months. Claims must be supported by robust evidence, ensuring that promotional materials reflect scientifically validated information. All promotional materials must clearly disclose potential risks, adverse effects, and contraindications. Comparisons with competitors’ products are allowed only with prior written consent from the competitor. The use of healthcare professionals’ names or endorsements in advertising is strictly prohibited, ensuring that promotions do not exploit professional reputations.

A product must not be marketed until it has received the necessary approvals from regulatory authorities. Companies must submit annual self-declarations signed by their executive heads, confirming adherence to the code. Detailed records of free samples distributed to healthcare professionals must be maintained to ensure transparency and compliance with tax laws.

With these regulations, India joins countries like Japan, Singapore, and members of the European Union in adopting stringent marketing standards. These changes enhance the credibility of India’s pharmaceutical industry in international markets, particularly as the country remains one of the largest exporters of generic medicines.

Crackdown on Finfluencers

With the rise of finfluencers, the Securities and Exchange Board of India (SEBI) has implemented measures to prevent unregulated advice.

Unregistered entities, including finfluencers are prohibited from providing financial advice, recommendations, or make claims about returns related to securities. SEBI-regulated entities and their agents are barred from associating with unregistered individuals or entities offering financial advice or making claims about investment performance. Platforms facilitating financial content must implement preventive and curative mechanisms to avoid misuse for unauthorized advice or recommendations. Associations with individuals or entities engaged exclusively in investor education, who do not offer financial advice or claims of returns are exempted from these Guidelines.

Moreover, under the Insurance Regulatory and Development Authority of India (IRDAI) Regulations, influencers cannot misrepresent products as being directly offered by them, and must explicitly state the insurer's role.

Conclusion

From the crackdown on greenwashing to the landmark Patanjali case, the year was defined by a regulatory push to elevate advertising ethics across industries. The introduction of stricter guidelines for influencers, pharmaceutical marketing, and environmental claims showcases the government’s intent to protect consumers and foster trust in the marketplace.

For businesses, these developments are a reminder that cutting corners can lead to significant reputational and financial consequences. The message is clear: ethical advertising isn’t just about compliance—it’s a competitive advantage in a market where consumers are more informed and discerning than ever.

Bonus: Authors’ Favorite Indian Ads from 2024

From Sharad Vadehra

My favorite ad of 2024 has to be Swiggy Instamart’s ‘Mango Mania’ published on the front page of the Sunday Times. As an Indian, I’ve always believed there’s no fruit that unites us quite like the mango. Whether it’s Alphonso from Ratnagiri or the tangy Totapuri, mangoes aren’t just fruit—they’re an emotion. And in the peak of mango season, this ad went beyond the paper and captured more than just the reader’s eyes. The tagline, “Read this ad with your nose,” was so clever it made me pause, almost convincing me that I could smell the sweetness of the mangoes right then and there. This campaign reminded us that advertising, when done right, can speak to our hearts, our senses, and yes, even our noses.

From Kanu Priya

My favorite ad of 2024 is Jindal Steel's campaign, titled ‘The Steel of India’. It beautifully celebrates the strength and resilience of steel as a symbol of India's progress, featuring stunning visuals of diverse landscapes and individuals. The powerful soundtrack, crafted from the sounds of steel, adds a unique touch to this tribute to India's steely spirit.

From Aakriti Vadehra

The competition among 10-minute grocery delivery platforms like Zomato’s Blinkit, Zepto, and Swiggy’s Instamart goes beyond speed, price, and catalogue variety—it's also about creating the most memorable ad campaigns. My favorite this year was Swiggy Instamart’s yet another hilarious and clever ad (watch here).

For our international readers, here’s a quick explanation: A customer, needing rice (called "chawal" in Hindi), accidentally types "Chawla" instead. Swiggy’s ever-dedicated delivery agents mistakenly interpret this as Juhi Chawla, a beloved Bollywood actress. They promptly prepare her for delivery until the customer corrects the typo. The agents graciously escort her back to her set with apologies before fulfilling the corrected order and delivering the rice—all within 10 minutes.

References

[1] Writ Petition Civil No. 645/2022-IMA & Anr. Vs. UOI & Ors.