Misleading Ads, Fake Sale Prices and Influencer Endorsements in India: How to Complain

Misleading Ads, Fake Sale Prices and Influencer Endorsements in India: How to Complain

Short answer: a false or misleading advertisement is a legal wrong under the Consumer Protection Act, 2019, and you have two kinds of remedy: complain to the regulator, and, if you bought because of the ad, claim from the seller. The Central Consumer Protection Authority (CCPA) can order an advertisement to be discontinued or modified, fine a manufacturer or endorser up to ₹10 lakh (up to ₹50 lakh for each subsequent contravention) and bar an endorser for up to a year (up to three years for each subsequent contravention) under section 21, though an endorser who exercised due diligence is protected. You can complain on the GAMA portal, to the National Consumer Helpline on 1915, or to the CCPA in writing, and a consumer commission can order a refund, compensation and a corrective advertisement under section 39(1).

General consumer information, not legal advice. The Act, the CCPA’s 2022 guidelines and the Department of Consumer Affairs’ January 2023 endorsement guide were checked against their published text on 13 October 2026.

What makes an advertisement “misleading”

Section 2(28) of the Act defines a misleading advertisement as one that (i) falsely describes the product or service; (ii) gives a false guarantee, or is likely to mislead consumers about the nature, substance, quantity or quality of the product or service; (iii) conveys an express or implied representation that would be an unfair trade practice if made by the seller; or (iv) deliberately conceals important information. “Advertisement” in section 2(1) is wide: any audio or visual publicity, representation, endorsement or pronouncement by print, electronic media, internet or website, including a label, wrapper or invoice. An influencer’s reel is therefore an advertisement if it is an endorsement, and an “endorsement” under section 2(18) includes any message, demonstration or depiction of a person’s name or likeness that makes consumers believe it reflects that person’s opinion, finding or experience.

Who can be punished and how

ProvisionWhoConsequence
s.21(1)Trader, manufacturer, endorser, advertiser or publisherCCPA order to discontinue the advertisement or modify it in the way and time specified
s.21(2)Manufacturer or endorserPenalty up to ₹10 lakh; for every subsequent contravention, up to ₹50 lakh
s.21(3)EndorserProhibition from endorsing any product or service for up to 1 year; for every subsequent contravention, up to 3 years
s.21(4)Anyone who publishes or is party to publishing a misleading advertisementPenalty up to ₹10 lakh
s.21(5)EndorserNot liable under s.21(2) and (3) if he exercised due diligence to verify the claims
s.89Manufacturer or service provider that causes a false or misleading advertisement prejudicial to consumersCourt punishment: up to 2 years’ imprisonment and a fine up to ₹10 lakh; for each subsequent offence, up to 5 years and up to ₹50 lakh
s.39(1)(l) and (n)Opposite party in a consumer complaintCommission can order a corrective advertisement at the offender’s cost, and an order to cease and desist from misleading advertisements

In deciding the penalty, section 21(7) directs the CCPA to weigh the population and area affected, the frequency and duration of the offence, the vulnerability of the people affected, and the gross revenue from sales made through the offence.

The 2022 guidelines and the influencer guide

The CCPA notified its Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022 on 9 June 2022. They apply to every advertisement in any form or medium and cover manufacturers, service providers, traders, advertising agencies and endorsers. In summary they require that an advertisement be an honest and truthful representation, that claims are capable of substantiation, and that exaggeration or omission does not mislead. They set conditions for bait advertisements (the advertiser must be able to supply the item at the advertised price and keep adequate supply for foreseeable demand, or say that supply is limited), for “free” claims (you may be asked to pay only the unavoidable cost of responding and of collecting or paying for delivery, and the extent of the commitment must be disclosed), and for disclaimers (they may clarify but must not contradict the main claim, hide material information or correct a misleading claim). They prohibit surrogate advertising, meaning promoting goods or services whose advertising is banned or restricted by law under the cover of another product. For endorsements, they require due diligence before endorsing, an endorsement that reflects the endorser’s genuine and reasonably current opinion based on adequate information or experience, and disclosure of any material connection with the advertiser.

The Department of Consumer Affairs’ guide Endorsements Know-hows!, released on 20 January 2023, explains what disclosure means for celebrities and influencers. It says material connections include money, free products (even unsolicited), discounts, gifts, trips, hotel stays and family, personal or employment relationships; that terms such as “advertisement”, “ad”, “sponsored” or “paid promotion” may be used; that the disclosure must be clear, prominent and not buried among hashtags or links; that in a video it should appear in the video and in the text, and in a live stream continuously throughout; and that influencers should not endorse what they have not personally used or checked. It is a guide to the guidelines, so a breach matters in practice through section 21.

Fake “sale” prices and countdown offers

  • Materially misleading the public about the price at which goods are ordinarily sold is an unfair trade practice (section 2(47)(i)(i)). So is advertising a “bargain price” for goods that are not intended to be offered at that price, or for a period or in quantities that are not reasonable (section 2(47)(ii)).
  • Fake timers and “only 2 left” messages are false urgency, one of the thirteen dark patterns in the CCPA’s 2023 guidelines; see the dark patterns guide.
  • From 1 January 2027, the Consumer Protection (E-Commerce) (Amendment) Rules, 2026 (notified 9 September 2026) require an announced price cut to show the prior price, defined as the lowest price in the preceding 30 days. This comes from law-firm and news summaries of the amendment, not the Gazette text, so confirm the wording before quoting it.
  • A “sale” claim is checkable: screenshot the listing now, and compare it with the price you saw or paid for the same product earlier, using your own screenshots or order history.

How to complain

  1. Capture the advertisement. Screen-record or screenshot it with the date visible, save the link, the account name and the product page. Influencer posts and stories can vanish; see how to preserve evidence before it disappears and whether a screenshot is valid evidence.
  2. GAMA (gama.gov.in) is the Department of Consumer Affairs’ portal for Grievances Against Misleading Advertisements. Register, choose the misleading-advertisement option, and attach the evidence. Check what the portal currently offers before relying on it.
  3. The National Consumer Helpline: 1915 or 1800 11 4000 (8 AM to 8 PM daily except national holidays), WhatsApp 8800001915, consumerhelpline.gov.in.
  4. The CCPA directly. Section 17 allows a written or electronic complaint about false or misleading advertisements prejudicial to consumers as a class to the District Collector, the Commissioner of the regional office or the CCPA.
  5. ASCI, the advertising industry’s self-regulatory body, also takes complaints. It is voluntary self-regulation; the penalties in the table above come from the CCPA and the courts, not from ASCI.
  6. If you bought because of the ad and lost money, write to the seller, then send a legal notice and file on e-Jagriti within two years (time limit).

What you can actually claim

The regulator’s penalties are not paid to you. Your own claim is as a buyer, and it depends on what you can show: that you relied on the advertisement and that the product or service did not match it. A consumer commission can then order the return of the price with interest (section 39(1)(c)), compensation for loss or injury caused by the opposite party’s negligence, with punitive damages possible (section 39(1)(d)), costs (section 39(1)(m)), a corrective advertisement and an order to stop (section 39(1)(l) and (n)). For a product that simply does not work, the remedies in the defective product guide apply as well. For a fee or price that differs from what was shown, see being charged more than MRP, and for subscription traps, how to stop an auto-debit. A related issue in education advertising is covered in coaching and edtech refunds.

Frequently asked questions

Is it illegal for an influencer to promote a product without disclosing that it is paid?

The CCPA’s 2022 guidelines require disclosure of any material connection between an endorser and the advertiser, and the Department of Consumer Affairs’ January 2023 guide spells out the wording and placement. If the resulting endorsement is misleading, the CCPA can penalise the endorser under section 21 and bar them from endorsing for up to a year, longer for repeat contraventions.

Can an influencer or celebrity be fined for a misleading ad?

Yes. Section 21(2) allows a penalty of up to ₹10 lakh on an endorser (up to ₹50 lakh for each subsequent contravention) and section 21(3) allows a ban on endorsing for up to one year (up to three for each subsequent one). Section 21(5) protects an endorser who exercised due diligence to verify the claims.

Can I get a refund because I bought after seeing a celebrity ad?

You can claim a refund if the product or service did not match what was advertised and you can show you relied on it; start with the seller and then use the consumer commission route. A commission can order the return of the price with interest, compensation and costs under section 39(1).

Is a fake “discount” or a fake “original price” illegal?

Materially misleading the public about the price at which goods are ordinarily sold is an unfair trade practice under section 2(47)(i)(i), and advertising a bargain price on goods not intended to be offered at it is another under section 2(47)(ii). The 2026 E-Commerce amendment, due from 1 January 2027, adds a prior-price display rule for announced price cuts.

Who should I complain to: GAMA, ASCI or the CCPA?

GAMA and the National Consumer Helpline are the quickest consumer-facing routes, and a written complaint to the CCPA under section 17 reaches the authority that can fine and issue directions. ASCI is a voluntary self-regulatory body without statutory fining power. You can use more than one, and keep the same evidence pack for each.

What is surrogate advertising?

It means advertising a product whose advertising is banned or restricted by law under the guise of promoting a different product. The CCPA’s 2022 guidelines prohibit it, though they allow a brand name used for restricted goods to be used for other goods where the guidelines are otherwise not violated.

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