A misleading advertisement caused me loss. Can I claim compensation?

What the Law Says

Indian law treats misleading advertisements as an 'unfair trade practice' and provides clear remedies for affected consumers.

Under the Consumer Protection Act, 2019, a misleading advertisement is defined as an 'unfair trade practice' — which includes making false or misleading representations about goods or services. This gives consumers the right to file a complaint before the District, State, or National Consumer Disputes Redressal Commission, depending on the value of the claim.

The Act empowers consumer commissions to order compensation, refunds, discontinuation of the ad, and even impose penalties up to ₹10 lakh and/or imprisonment up to two years for repeated violations.

Additionally, the Advertising Standards Council of India (ASCI) Code — though self-regulatory — is recognized under Section 2(28) of the CPA, 2019, and courts often rely on its guidelines to assess whether an ad is misleading.

Statutory Text

“unfair trade practice” means a trade practice which, for the purpose of promoting the sale, use or supply of any goods or for the provision of any service, adopts any unfair method or unfair or deceptive practice including— (i) false representation… (v) making false or misleading claims…

— Consumer Protection Act, 2019, s. 2(28) — Definition of 'unfair trade practice'

Statutory Text

The Central Authority may impose a penalty of up to ten lakh rupees and imprisonment for a term which may extend to two years for false or misleading advertisements.

— Consumer Protection Act, 2019, s. 89 — Penalty for false or misleading advertisements

What Courts Have Said

Indian courts have consistently held advertisers and manufacturers liable for losses arising from deceptive claims.

What to Do

Sources