Advertisements, Asymmetric Information and Unfair Trade Practices in India

Advertising is one of largest sources of revenues in the world economy. It generates employment both directly and indirectly and influences a large section of the people. In India, advertisements reach about 75 percent of the population through television, and almost the entire population through radio. Certain television programmes enjoy a viewership of more than 100 million. The competitive and buyer's market needs a truthful and ethical advertising, whereas the advertising industry has been frequently criticised for putting out misleading or exaggerated claims in respect of product, goods and services advertised. Further the market forms the unfair trade practices by providing the asymmetric information by deceptive advertisements. Therefore the institutional measures are emerged inevitable in India to protect the consumer from the exploitation. The consumer protection act was introduced in 1986 to protect the consumer rights and its Section 6 describes the rights of the consumer and Section 2(r) defines the unfair trade practices. The Advertising Standard Council of India (ASCI), a voluntary self-regulating organisation was established in 1985 to provide the guidance to the advertisement standards. ASCI committed to the cause of Self-Regulation in Advertising, ensuring the protection of the interests of consumers.