Prevention of misleading advertisements – Analysis of guidelines issued by Central Consumer Protection Authority
By Manan Chhabra
The article in this issue of Corporate Amicus analyses the recently notified Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022. These Guidelines issued by the Central Consumer Protection Authority seek to ensure that consumers are not deceived by exaggerated promises, misinformation and false claims pertaining to any product or service and that the rights of consumers are adequately protected. The article discusses bait advertisements, surrogate advertisements and free claims advertisements, and host of other provisions like directions for usage of disclaimers, due diligence to be conducted by endorsers, conditions when advertisements portray obvious untruths and exaggerations, etc. According to the author, this will reform the way advertisements have been carried out and perceived by consumers...
Notifications and Circulars
- SEBI – UPI mechanism introduced for investors of REITs and InvITs
- Punishment in case of non-compliance of National Financial Reporting Authority Rules – Provision substituted
- SEBI – Reduction of timelines for the listing of units of privately placed InvITs
Ratio decidendi
- NCLT has discretion to not admit financial creditor’s CIRP application even if corporate debtor is in default – Supreme Court
- Lease rentals when qualify as ‘operational debt’ under IBC – Court notes payment of GST for provision of service – NCLAT Principal Bench
- Amended Scheme of Compromise cannot enforce invocation of arbitration under any existing agreement in the absence of an arbitration clause in such agreement and the scheme – Bombay High Court
News Nuggets
- Insolvency – Action before DRT not curtails rights under IBC
- ‘Commercial disputes’ – Scope clarified
- Arbitration – Proceedings under Section 9 of the Act are not meant for enforcement of conditions of contract
- Insolvency – Inter-creditor agreement between consortium members does not bar admission of application under Section 7 of the IBC
- Insurance company cannot be held guilty of deficiency of service solely for the delay in processing/repudiating claims
- Independent, Non-Executive Director shall not be liable for the acts of company if they are not involved in the daily business
- Packaging of insecticides – Specific provision under Insecticides Act will prevail over Legal Metrology Act and Rules
