Quick Answer
Advertising law in India operates across two layers: statutory regulation under the Consumer Protection Act, 2019, enforced by the Central Consumer Protection Authority (CCPA), and self-regulation under ASCI guidelines updated in 2025. Brands, agencies, celebrity endorsers, and influencers all carry defined legal exposure. Non-compliance carries penalties up to ₹50 lakh for repeat offenders.
India’s advertising regulatory framework is layered, sector-specific, and actively enforced. Marketing heads and brand managers who treat compliance as an afterthought face CCPA investigations, ASCI complaints, injunctions, and for celebrity endorsers personal financial liability. Influencer marketing adds a further compliance dimension governed by ASCI’s 2021 guidelines (updated 2025), IT Rules 2021, and the Digital Personal Data Protection Act, 2023.
This guide covers the full legal framework for advertising law in India statutory foundations, ASCI’s 2025 updates, misleading advertising consequences, influencer compliance requirements, and the rules governing comparative advertising. It is structured for marketing heads, advertising agencies, brand managers, and influencers who need commercially precise answers, not abstract legal commentary.
Legal Framework for Advertising in India
Consumer Protection Act, 2019: The Statutory Foundation
The Consumer Protection Act, 2019 provides the primary statutory framework for regulating advertising content in India. Section 2(28) defines a “misleading advertisement” as any advertisement that falsely describes a product or service, gives a false guarantee, or is likely to mislead consumers about the nature, characteristics, or quality of the product.
The Central Consumer Protection Authority (CCPA), established under Section 18 of the Act, holds broad investigative and enforcement powers. Section 21 empowers the CCPA to impose penalties of up to ₹10 lakh for a first misleading advertising offence. For repeated violations, the penalty escalates to ₹50 lakh. The CCPA can also prohibit the endorser from appearing in any advertising for up to three years.
Importantly, the Act extends liability beyond the advertiser. Celebrity endorsers and brand ambassadors carry direct statutory exposure, a critical point we address below.
ASCI (Advertising Standards Council of India): Self-Regulatory Body
The Advertising Standards Council of India (ASCI) operates India’s self-regulatory framework for advertising. Unlike the CCPA, ASCI is not a statutory body, but its codes are increasingly treated as the compliance benchmark by courts, regulators, and industry bodies.
ASCI’s Consumer Complaints Council (CCC) reviews complaints against advertisements across all media. Brands found in violation are required to modify or withdraw the advertisement. Persistent non-compliance is referred to the Ministry of Consumer Affairs or sector regulators.
ASCI complaints are faster than CCPA proceedings and carry significant reputational consequences. For most brands, an upheld ASCI complaint is a compliance event that requires immediate attention.
ASCI 2025 Updated Guidelines: Key Changes
ASCI released updated guidelines in 2025 that expand compliance obligations in several commercially significant areas:
- Virtual influencer disclosure: AI-generated or virtual influencers must be explicitly identified as non-human. Failure to disclose virtual influencer status is treated as a misleading representation.
- Same-language disclosure: Disclosures must appear in the same language as the primary advertising content. An English-language disclaimer on a Hindi-language advertisement does not satisfy the requirement.
- Above-the-fold placement: Disclosures must be visible without scrolling. Burying “#ad” disclosures below product content or in hashtag clusters no longer complies.
- Dark patterns: ASCI’s 2025 framework explicitly addresses manipulative UI practices, countdown timers, hidden opt-outs, and artificial urgency claims as advertising violations.
- Health claims: Stricter substantiation requirements apply to health and wellness product advertising. Unverified efficacy claims now carry a higher evidentiary threshold.
- Crypto disclaimers: Cryptocurrency and virtual digital asset advertising must carry specified risk disclaimers in a form and size defined by the guidelines.
Altacit Global advises reviewing all active campaign materials against each of these 2025 updates before publishing.
Sector-Specific Advertising Regulations
Multiple sector regulators impose advertising rules that operate alongside and sometimes override the ASCI code:
Sector | Regulator | Key Restrictions |
Food and beverages | FSSAI | Health claims require scientific substantiation; nutrient comparisons governed by FSSAI regulations |
Pharmaceuticals | CDSCO / MCI | Prescription drug advertising to general public is prohibited; OTC drug claims require approval |
Financial products | SEBI | Investment product advertisements require risk disclosures; SEBI’s 2023 influencer rules restrict unregistered persons from promoting securities |
Telecom | TRAI | Tariff advertising governed by TRAI guidelines; comparative pricing claims subject to verification requirements |
Alcohol and tobacco | MoHFW / state regulations | Direct advertising prohibited; surrogate advertising restrictions apply |
Sector-specific rules must be layered onto the general ASCI and CCPA framework. A food brand that complies with ASCI guidelines but fails to meet FSSAI substantiation requirements remains exposed.
Misleading Advertising: Legal Consequences
CCPA Investigation
The CCPA can initiate investigations suo motu without a consumer complaint based on media reports, market surveillance, or referrals from other regulators. Once an investigation is opened, the advertiser must submit evidence substantiating every claim made in the advertisement.
The CCPA applies a “reasonable consumer” standard: would an average consumer be misled by the advertisement? Claims that are technically accurate but presented in a way that creates a false overall impression can still be classified as misleading under Section 2(28) of the Consumer Protection Act, 2019.
Cases and Examples
The CCPA has investigated misleading claims across sectors including e-commerce, real estate, food products, and health supplements. FMCG brands making comparative efficacy claims, real estate developers advertising completion timelines, and health supplement brands citing unverified clinical data have all faced enforcement actions.
ASCI’s data shows that digital advertising social media posts, influencer content, and search advertising now accounts for the majority of complaints processed each year, reflecting the shift in advertising spend toward digital channels.
Personal Liability for Celebrity Endorsers
Section 21 of the Consumer Protection Act, 2019 creates direct personal liability for celebrity endorsers. An endorser who promotes a misleading advertisement faces penalties up to ₹10 lakh for a first offence and up to ₹50 lakh for subsequent violations.
The endorser’s liability arises when they endorse a product without exercising due diligence to verify the claims being made. This is a significant commercial exposure that most endorsement agreements have not historically addressed. Altacit Global structures endorsement agreements to include contractual due diligence obligations, claim verification requirements, and indemnity provisions that protect endorsers from liability arising from advertiser misrepresentation. Brands operating in the media and entertainment sector should also review our Legal Framework for Media and Entertainment Companies in India for the broader regulatory context in which advertising obligations sit.
Influencer Marketing Law in India: 2025 Compliance Requirements
ASCI Influencer Guidelines 2021 (Updated 2025)
ASCI’s influencer guidelines require all influencers promoting products or services for consideration whether monetary or in kind to disclose the commercial relationship clearly and prominently. The 2025 updates tighten these requirements in three specific ways:
- Disclosures must use ASCI-specified labels: “#Ad”, “#Sponsored”, or “#Collaboration.” Generic tags like “#gifted” or “#partner” no longer satisfies the disclosure requirement.
- Disclosures must appear above the fold visible before the viewer expands the caption or scrolls past the primary image.
- For live streaming content, disclosures must appear at the beginning and at regular intervals throughout the broadcast.
Influencers who are registered with SEBI as Research Analysts or Investment Advisers may promote financial products within the scope of their registration. Unregistered influencers commonly referred to as “finfluencers” are prohibited from promoting securities, mutual funds, or investment products under SEBI’s 2023 circular.
IT Rules 2021: Platform Obligations for Influencer Content
The Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 impose compliance obligations on social media platforms and, by extension, shape influencer content standards. Platforms are required to provide mechanisms for flagging misleading content, and they bear traceability obligations for content that becomes the subject of a regulatory inquiry.
For influencers, the practical consequence is that platforms will respond to ASCI and CCPA referrals by restricting or removing non-compliant content. A brand whose influencer campaign is flagged under IT Rules 2021 faces both platform action and potential regulatory scrutiny simultaneously.
DPDP Act: Data from Influencer Campaigns
The Digital Personal Data Protection Act, 2023 applies to influencer campaigns that collect personal data from consumers lead generation forms, contest entries, email sign-ups promoted through influencer posts, and retargeting pixel data linked to influencer traffic.
Under the DPDP Act, brands must obtain valid consent before collecting personal data through influencer campaign touchpoints. The consent mechanism must be clear, specific, and in the language the consumer understands. Data collected through influencer campaigns cannot be used for purposes beyond what was disclosed at the point of collection.
Altacit Global recommends reviewing the data flows in influencer campaigns particularly those using trackable links, contest mechanics, or retargeting against DPDP Act consent requirements before the campaign launches. For a detailed breakdown of how the DPDP Act applies to digital platforms and data collection practices, see our DPDP Compliance Guide for Digital Businesses. This is an area where non-compliance risk is frequently underestimated.
Comparative Advertising: Is It Legal in India?
Comparative advertising is legally permissible in India, but the boundaries are precisely drawn by the Supreme Court’s decision in Reckitt Benckiser v. Hindustan Unilever. The Court held that an advertiser may:
- Claim that their product is superior to a competitor’s
- Make truthful, substantiated comparisons of product attributes
- Refer to a competitor’s product category in general terms
What is not permissible:
- Denigrating a competitor’s product by making false or unsubstantiated negative claims
- Bringing a competitor’s product into contempt or ridicule
- Making comparisons that mislead consumers about the competitor’s product performance
The distinction between legitimate superiority claims and unlawful denigration turns on factual substantiation and the overall impression conveyed. A claim that “our product removes stains 30% faster, as tested by [named laboratory]” is defensible. A claim that implies a competitor’s product is dangerous or defective without evidence crosses into denigration.
ASCI’s guidelines align with the Reckitt Benckiser framework. Comparative advertising complaints are among the most frequently contested at the CCC, and brands considering comparative campaigns should obtain legal review before publishing.
Structure Your Advertising Compliance Before Your Campaign Launches
Advertising compliance in India is not a post-publication concern; it is a pre-campaign requirement. An ASCI complaint upheld after a campaign launch, a CCPA investigation triggered by a product claim, or an influencer disclosure failure identified during a platform audit all carry costs that structured pre-launch review prevents.
Altacit Global advises brands, advertising agencies, and influencers on the full spectrum of advertising law compliance in India: Consumer Protection Act, 2019 obligations, ASCI guideline compliance, sector-specific regulatory requirements, endorsement agreement structuring, influencer campaign compliance, and DPDP Act data consent requirements.
We also draft and review Endorsement Agreements and copyright and IP compliance frameworks that address celebrity endorser liability, influencer disclosure obligations, and comparative advertising substantiation requirements. Our team works with marketing and legal teams to integrate compliance into campaign development not as a checkpoint after creative is finalized, but as a commercial protection layer from the outset.
To discuss your campaign’s compliance requirements or to commission a legal review of your advertising materials, contact our team at info@altacit.com.
Frequently Asked Questions: Advertising Law India
Q1: Can a celebrity be held personally liable for a misleading ad in India?
Yes. Section 21 of the Consumer Protection Act, 2019 imposes direct personal liability on endorsers. A celebrity who promotes a misleading advertisement without exercising due diligence to verify the claims faces penalties up to ₹10 lakh for a first offence and up to ₹50 lakh for repeated violations. The CCPA can also bar the endorser from advertising for up to three years. Due diligence obligations should be expressly documented in the endorsement agreement.
Q2: Is it mandatory to disclose paid partnerships in social media posts in India?
Yes. ASCI’s influencer guidelines updated in 2025 require all influencers to disclose paid partnerships, gifted products, and commercial collaborations clearly and prominently. Disclosure must use ASCI-specified labels (“#Ad”, “#Sponsored”, “#Collaboration”), appear above the fold, and be in the same language as the primary content. Non-disclosure exposes both the influencer and the brand to ASCI complaints and CCPA inquiry.
Q3: Can I use a competitor's product name in my advertising in India?
A competitor’s product name can be used for factual, substantiated comparative claims as permitted under the Reckitt Benckiser v. Hindustan Unilever Supreme Court framework. However, using a competitor’s name in a way that denigrates the product, makes false claims, or misleads consumers constitutes unlawful comparative advertising. Each comparative campaign requires legal review of the substantiation evidence before publication.
Q4: Does the ASCI code apply to advertising on YouTube and Instagram?
Yes. The ASCI code applies to advertising across all media, including YouTube, Instagram, X (formerly Twitter), LinkedIn, and other digital platforms. ASCI’s influencer guidelines specifically address content published on social media platforms, including live streaming content. ASCI collaborates with these platforms to enforce its codes, and platform mechanisms increasingly enable ASCI and CCPA referrals to result in content restriction or removal.
Q5: What is the Corporate Laws Amendment Bill 2026's impact on real estate companies?
The Corporate Laws Amendment Bill 2026 introduces three changes directly relevant to real estate and construction companies. First, it formally recognises Restricted Stock Units (RSUs) and Stock Appreciation Rights (SARs) as valid compensation instruments, giving developers and PropTech companies more options for employee and advisor retention. Second, it strengthens the National Financial Reporting Authority (NFRA), raising financial reporting standards for larger real estate firms. Third, it revises the Corporate Social Responsibility (CSR) net profit threshold from INR 5 crore to INR 10 crore, reducing the CSR obligation for mid-scale developers while retaining it for larger companies.
