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13 companies under scrutiny for surrogate advertising

The Central Consumer Protection Authority (CCPA) has issued notices to 13 companies, including alcohol, tobacco, and paan masala manufacturers, for allegedly engaging in surrogate advertising, a practice used to circumvent bans on direct promotion of certain products.

Surrogate advertising involves promoting banned products by advertising other items under the same brand name. Union Consumer Affairs Minister Pralhad Joshi reportedly confirmed on Tuesday that the CCPA is drafting comprehensive guidelines to regulate this issue.

The companies have responded to the notices, denying any involvement in surrogate advertising. However, preliminary findings indicate potential interlinked business activities, which are currently under scrutiny. Officials stated that guidelines to address the issue are expected to be notified next month.

Crackdown on pesky calls

In a separate initiative, the consumer affairs department plans to release guidelines in January to combat unsolicited commercial communications, including spam calls. The draft guidelines, prepared in consultation with stakeholders, aim to complement existing regulations enforced by the Telecom Regulatory Authority of India (TRAI).

Consumer Affairs Secretary Nidhi Khare, speaking at a National Consumer Day event, stated, “We will harmonise the guidelines with the telecom department’s upcoming rules and issue them next month.”

TRAI Chairman Anil Kumar Lahoti highlighted that while the telecom regulator is introducing stricter norms, the consumer affairs ministry is focusing on defining business entities’ roles and responsibilities.

Marking National Consumer Day, Joshi unveiled several initiatives to bolster consumer protection, including AI-enabled helplines and tools to identify deceptive marketing practices.

E-commerce safety pledge

Thirteen e-commerce platforms, including Reliance Retail, Tata Sons, and Zomato, signed safety pledges to enhance consumer protection. The firms committed to detecting and preventing the sale of unsafe or non-conforming products, cooperating with statutory authorities, and raising awareness about product safety.

These measures, officials say, aim to empower consumers and ensure compliance with safety standards across industries.

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