Misleading Advertisement Complaint Against MSME Defence Options
It can seem innocuous at the time of approval but can cause you legal issues down the road.
Maybe you run a small manufacturing unit in Noida and mentioned your product is "100% Natural" in an ad. Or you provide some service through software and stated the outcome of that service in an advertisement. Or maybe you ran an advertisement against a competitor based in Delhi. A consumer comes forward and alleges your statement to be false. People start sharing screenshots. A notice is served. Now you start worrying about the fine, loss of goodwill and taking down the advertisement.
If you receive a complaint for misleading advertisement as an MSME you shouldn't take it lightly. There can be action taken under the Consumer Protection Act, 2019 in case of a misleading advertisement. You could be ordered to stop or modify the advertisement and be fined. In some cases it may even attract criminal liability.
Being an MSME doesn't exempt you from the provisions of this act.
However just because you have received a complaint doesn't mean that your advertisement is misleading. What did you write? What was depicted in your advertisement? Did you add any disclaimers? What documentation do you have to prove your claim? Who is your targeted consumer and how would they take your message? These are all questions that need to be answered.
Often times I see businesses making the situation worse by deleting content or sending an angry response or admitting that their advertisement was "incorrect". Always respond with caution.
MSME Lawyers can help you with your misleading advertisement complaint. Advocate BK Singh will look into your advertisement, complaint and any documentary proof you may have and advise you on how to proceed further.
We aren't going to make excuses for a false advertisement but we can help you understand what you put out there, if it could be considered misleading and how to deal with the situation.
Why This Issue Matters for MSMEs Across India in 2026
Online marketing allows small business to reach people all over the country. You could be running a business out of Ghaziabad and promote your products to someone living in Bangalore. Mumbai. Jaipur or even Chennai. In no time via Google. Instagram. Any marketplace. Youtube or your own website.
As you reach more people there will be more chances to get hit by regulations.
Under Section 2(28) of the consumer protection act 2019 any advertisement which makes a false claim about a product or service. Gives a false assurance. Or causes a customer to think something is what it's not. Such as quantity quality etc can be deemed illegal. Also if something is intentionally concealed or misrepresented this section applies.
Any complaints made against such advertisement that effects a group of people can be sent to the district collector. Or commissioner of the concerned area office or central consumer protection authority.
An Msmes biggest concern is probably going to be commercial in nature. They may receive questions from a marketplace. Questions from distributors. Customers sending pictures on social media. Your staff and management will have to answer these queries.
This is where an MSME Lawyer will help you understand what was wrong with the advertisement.
Quick Facts
- According to section 2(28) of the Consumer Protection Act 2019 it can be held as Misleading Advertisement.
- If your business is MSME registered it doesn't mean you cannot be charged under any consumer protection or advertisement act.
- The guidelines released by CCPA in 2022 talks about Misleading Advertisement and endorsement made by them.
- They can order to alter the advertisement or discontinue the same if found misleading under Section 21 of Consumer Protection Act 2019.
- The manufacturer or endorser will be punishable with a fine up to 10 lakh rupees for each such offence and for every subsequent contravention it can be increased to 50 lakhs.
- In case of false or misleading advertisement made by manufacturer or service provider they have given a separate provision under section 89 for the punishment.
- Proof should be available prior to or while making any objective claim in advertisement. Not just to support yourself when a complaint is filed.
What Is a Misleading Advertisement Complaint Against an MSME?
Complaint can be raised under misleading ad if an ad gives material false/misleading or incomplete impression regarding a product/service.
This doesn't have to be a blatantly false sentence.
It could be the entire picture given, a promise, left out a condition that should have been disclosed, comparison made that was wrong, claimed performance with no proof to back it up, pricing and disclosures which were made insufficient to negate the primary message.
Example: An MSME can claim:
If they are not able to provide the service at those timings throughout their area of operation and this fact is mentioned in smaller print then you might end up having an issue regarding misleading impressions.
One can state that there product is Indias No. 1. They may not have any material to back up that statement. There could also be a mention of no charges but when you proceed further you see that there is a processing fee applicable.
So as you can see there are different circumstances that lead to different issues.
The CCPA has released its 2022 guidelines which mention various clauses that advertisements must adhere to. Some topics include bait ads, free claims, surrogate ads, advertisements meant for children and disclosures and responsibility of the advertiser. It has also been stated by government that disclosures should not be made to negate a material fact or a primary message.
What Defence Options Can an MSME Consider?
A proper defence begins with evidence, not denial.
The precise approach varies case to case, but several issues commonly require examination.
Was the Claim Factually Correct?
They should be cross referenced to documents that existed at the time of advertising.
A Manufacturer could state a piece of equipment has certain specifications. There may be lab results, certifications, build records or vendor information that can come into play.
No amount of marketing speak will make up for lack of substantiation.
MSME Lawyers can build an argument if proper documentation can be found to support what was claimed.
Was the Advertisement Read Out of Context?
They can take one sentence from the ad.
So make sure you have the full web page. Video, voice over, captions, package, fine print, pictures etc.
While context can play a role. A disclaimer will not fix a misleading title. The guidelines from 2022 limit the use of a disclaimer to bury important information or try to correct a misleading statement.
Does the Complainant Have the Correct Legal Route?
This could be an individual vs consumer as a whole when it comes to a regulatory matter.
There may also be a situation where someone purchases something for a business. The act defines what is considered a “consumer” and has some exclusions. There is also an exception to the rule if the good/service was purchased solely to make a living for yourself.
So it would have to be analyzed on a case by case basis. You cannot simply assume someone is not a consumer because they are buying from a business.
If someone argues that they do not fall under the category of a consumer and should not use the consumer commission then that still opens up the statute to be used against false advertisement.
Was Corrective Action Taken Promptly?
You will still be liable for any claims you have previously advertised by deleting or editing your ad to correct or explain the dispute.
However this can play a role in business if you do take steps to correct or clarify your ad.
Our team of MSME Lawyers can help determine if you need to change your ad right away or if you can stand by your claim and make sure to document everything.
What Documents Should an MSME Preserve?
Do not delete your campaign when you receive a complaint. Most times it's better to preserve then contest.
Preserve:
- The ad as it was originally advertised;
- Screenshot with date and on what website;
- Video, script, audio and any creatives;
- Product information and spec sheets;
- Lab reports if applicable;
- Any certifications the product may have been relying on;
- Claim made from supplier;
- Pricing information and offers;
- T&C's;
- Bill or transaction history relating to the customer;
- Correspondence with any media houses or influencer's used;
- Internal documents that approved the campaign;
- Research that supports any comparative/superiority claims;
- Notice/complaint and any previous response; and
- If there was an amendment or retractation keep this also.
Always make sure to preserve the web page as it appeared at the time of the advertisement.
Often you will find the client has saved the updated web page and cannot find the original ad that has been complained about.
Having Advocate BK Singh look through the documentation can assist in distinguishing which documents are beneficial to your cause and which aren't.
When Should an MSME Consult a Lawyer?
It can be beneficial to seek legal advice if you have received a letter from the CCPA, a Consumer Commission, regulator, Legal Notice or Claim that asks for a significant amount of money.
If the campaign you are advertising to children, claims about health, finance, food, medication, environmental claims or another category that can fall under strict scrutiny.
As soon as the dispute is made public you should not wait.
MSME Lawyers can look at preserving your advertisement, ongoing liability and changes you can make without admitting anything if your advertisement is currently running.
If you have other litigation that may pertain to these types of cases check out our MSME Lawyers website for information about related legal services.
How Can MSME Lawyers Help?
Lawyers who deal in MSME Law will be able to study the complaint and go through the whole advertisement instead of taking what the complainer says as true.
It could include interpretation of the advertisement in question, proof in documentary form, laws related to consumer, which forum would be appropriate, how to respond and if the business should correct the advertisement at hand.
If this is part of a larger commercial dispute then the business may have to segregate the issue of advertisement with that of contract/payment/supply etc. Our firm offers resolution of disputes which you can read about here MSME Dispute Resolution.
BK Singh advocate can help you in case of any such notice received in Delhi NCR and other parts of India. We can help you collate information and draft a reply. There is no lawyer who can assure that your complaint will be rejected. It will depend on your advertisement, evidence, law followed and circumstances.
If you wish to take out an appointment with a lawyer click here Hire an MSME Lawyer.
Frequently Asked Questions
1. Will I get penalised if my MSME puts up a misleading advertisement?
If your business is a manufacturer, trader or service provider then you can be penalised for putting out misleading advertisements. Registration as an MSME will not shield you from laws that govern consumers. There are different directions that the CCPA can pass and penalities that can be levied as per section 21.
You can speak to MSME Lawyers to understand if the advertisement falls within the definition as per the Act.
2. What does an advertisement amount to when it is considered misleading?
Section 2(28) of the Act lays down certain criteria that would deem an advertisement misleading. These are some of the examples:
It should be considered as a whole.
3. Is there a defence that I can take if my MSME advertisement is found to be misleading?
In certain instances the presence of a disclaimer can act as a defence.
However as per the guidelines set out by CCPA a disclaimer should not try to hide important information or negate the main statement being made in the advertisement.
You can speak to Advocate BK Singh to know if your disclaimer acts as a defence.
4. Should I take my advertisement down if it has been found to be misleading?
Firstly take a screenshot of the entire advertisement. After this you can choose to remove or alter your advertisement depending on what you have been accused of. By destroying your advertisement you will not be able to prove what your advertisement said.
Speak to MSME Lawyers to find out if your advertisement needs to be removed.
5. Can CCPA make me stop running my advertisement?
The CCPA after conducting an investigation can ask you to stop running your advertisement if they find it to be misleading as per Section 21.
There is a chance of hearing provided for when passing an order under Section 21.
6. What is the maximum penalty I can receive for a misleading advertisement?
The CCPA can impose a fine on you that can extend up to 10 Lakhs. If you commit the offence again you can be fined an amount that can extend to 50 Lakhs. The Act mentions certain penalties that can be imposed on publishers and endorsers as well.
Depending on what your role was you can be penalised.
7. Can I be sent to jail for a misleading advertisement?
As the Consumer Protection Act has a section which states an offence.
If you as a manufacturer or service provider cause any false or misleading advertisement that goes against the interest of the consumer you can be punished as per Section 89.
Just because you have been accused does not mean you are guilty.
8. Are there any documents that can help me in case of a misleading advertisement?
If the advertisement makes claims that you have evidence to back up then those documents can come in handy.
These could include testing reports, certificates, prices etc. Along with the advertisement itself.
Speak to Advocate BK Singh to see if the documents you have can act as a defence.
9. Can someone else complain about my MSME advertisement?
Depending on who has complained about your advertisement and what they have used to complain you can be held liable. It could be your competitors who have something to do with your business.
There are different things you can be accused of if its a competitor that has filed a complaint against you. Speak to MSME Lawyers to understand what type of offence you can be accused of.
10. How fast should I reply to a misleading advertisement complaint?
Make sure you know how long you have to respond. Once you know this make sure you have all your documentation ready. Do not admit to anything as you may want to change your answer at a later stage. Speak to Advocate BK Singh to know more about your case.
Final Thoughts
It can go beyond just an angry customer when you get a misleading advertisement complaint from an MSME. There are provisions under the Consumer Protection Act 2019 that will allow CCPA to direct you to change or stop running the advertisement along with statutory penalty.
You have to know the facts behind your defense.
What was advertised? Was it factual? Can you prove it? Did you leave out any important facts? What does the whole advertisement say? What forum is this being taken up at?
Once you know these answers you can start writing that email to defend yourself or make a stand for your business.
MSME Lawyers Advocate BK Singh can help MSME's with any Advertising Complaints in Delhi, New Delhi, Noida, Greater Noida, Ghaziabad, Gurugram, Faridabad and rest of India.
To know more about MSME Lawyers and what they can offer to your MSME please visit MSME Lawyers.
