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CCPA Takes Action: 13 Firms Warned for Surrogate Advertising and Harassment Calls in India

Short Description

The Central Consumer Protection Authority (CCPA) cracks down on surrogate advertising practices among major firms, focusing on regulating unscrupulous marketing and protecting consumers from unsolicited calls.

Read Time

2 minutes 45 seconds

Main Article

Recent actions by the Central Consumer Protection Authority (CCPA) in India have triggered significant attention in the consumer rights arena. The CCPA has issued notices to 13 companies, including prominent players in the alcohol, tobacco, and paan masala industries, for allegedly engaging in surrogate advertising. This practice involves promoting other products under the guise of the same brand name to circumvent advertising bans on specific goods. Union Consumer Affairs Minister Pralhad Joshi indicated that these companies have denied engaging in such practices, claiming compliance with existing norms. However, the CCPA is expected to release comprehensive guidelines next month to combat this deceptive practice and enhance consumer protection.

Surrogate advertising not only undermines market integrity but also poses significant risks to consumer health and safety. As the CCPA delves deeper into these allegations, indications of interlinks between these businesses are prompting a meticulous review process. This renewed focus on compliance reflects broader trends in consumer protection, where regulations are increasingly being tightened to safeguard public interests. Such measures are essential in an era where misleading advertising can easily go unnoticed by the average consumer.

In addition to addressing surrogate advertising, the consumer affairs department is preparing guidelines to combat unsolicited commercial communications, commonly known as pesky calls. Despite existing regulations by the Telecom Regulatory Authority of India (TRAI), many individuals continue to receive spam calls from unregistered entities, leading to an overwhelming sense of frustration among consumers. Consumer Affairs Secretary Nidhi Khare revealed that draft guidelines are in the works and will harmonize with upcoming telecom regulations. These dual initiatives by the CCPA signify a proactive approach to defending consumer rights and reinforcing ethical business practices.

Moreover, the CCPA recently launched several initiatives aimed at strengthening consumer protection, including artificial intelligence tools to identify and curb deceptive marketing practices. During the National Consumer Day event, a safety pledge was signed by thirteen major e-commerce platforms, including Reliance Retail and Zomato, committing to detect and prevent the sale of unsafe products. This pledge emphasizes the importance of consumer empowerment and product safety awareness among sellers.

Short Summary

The CCPA’s recent crackdown on surrogate advertising and plans to regulate unsolicited calls mark a pivotal move in strengthening consumer rights. With new guidelines on deceptive marketing and e-commerce safety pledges, consumers can expect enhanced protections in the marketplace.

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