Section 21 – THE CONSUMER PROTECTION ACT, 2019

—(1) Where the Central Authority is satisfied after investigation that any advertisement
is false or misleading and is prejudicial to the interest of any consumer or is in contravention of consumer
16
rights, it may, by order, issue directions to the concerned trader or manufacturer or endorser or advertiser
or publisher, as the case may be, to discontinue such advertisement or to modify the same in such manner
and within such time as may be specified in that order.
(2) Notwithstanding the order passed under sub-section (1), if the Central Authority is of the opinion
that it is necessary to impose a penalty in respect of such false or misleading advertisement, by a
manufacturer or an endorser, it may, by order, impose on manufacturer or endorser a penalty which may
extend to ten lakh rupees:
Provided that the Central Authority may, for every subsequent contravention by a manufacturer or
endorser, impose a penalty, which may extend to fifty lakh rupees.
(3) Notwithstanding any order under sub-sections (1) and (2), where the Central Authority deems it
necessary, it may, by order, prohibit the endorser of a false or misleading advertisement from making
endorsement of any product or service for a period which may extend to one year:
Provided that the Central Authority may, for every subsequent contravention, prohibit such endorser
from making endorsement in respect of any product or service for a period which may extend to three
years.
(4) Where the Central Authority is satisfied after investigation that any person is found to publish, or
is a party to the publication of, a misleading advertisement, it may impose on such person a penalty which
may extend to ten lakh rupees.
(5) No endorser shall be liable to a penalty under sub-sections (2) and (3) if he has exercised due
diligence to verify the veracity of the claims made in the advertisement regarding the product or service
being endorsed by him.
(6) No person shall be liable to such penalty if he proves that he had published or arranged for the
publication of such advertisement in the ordinary course of his business:
Provided that no such defence shall be available to such person if he had previous knowledge of the
order passed by the Central Authority for withdrawal or modification of such advertisement.
(7) While determining the penalty under this section, regard shall be had to the following, namely: —
(a) the population and the area impacted or affected by such offence;
(b) the frequency and duration of such offence;
(c) the vulnerability of the class of persons likely to be adversely affected by such offence; and
(d) the gross revenue from the sales effected by virtue of such offence.
(8) The Central Authority shall give the person an opportunity of being heard before an order under
this section is passed.