CCPA advisory on Prohibition of Advertising, Promotion, and Endorsement of Illegal Activities

In response to increasing instances of advertisements promoting illegal activities such as betting and gambling, the CCPA advisory (Central Consumer Protection Authority) has issued a comprehensive advisory.

Key highlights of the advisory:

Legal Framework:

• The advisory, in accordance with the Consumer Protection Act, 2019, emphasizes the prohibition of advertising, promotion, and endorsement of unlawful activities prohibited under various laws.
• Betting and gambling are strictly prohibited under the Public Gambling Act, 1867, and are illegal in most regions of the country.

Need for advisory:

• Despite legal restrictions, online platforms persist in advertising betting and gambling activities, directly and under the guise of gaming.
• Endorsements pose significant financial and socio-economic implications, particularly for the youth.

Guidelines for Prevention:

• The advisory highlights that, the Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022, categorically prohibit advertisements of products or services prohibited under any prevailing law.
• It reiterates that the guidelines apply to all advertisements, irrespective of the medium used.
• It warns celebrities and influencers that any engagement in the promotion or advertisement of online gambling and betting, given its unlawful status, renders one equally liable for participating in an illegal activity.

Scrutiny and Measures:

• CCPA cautions that any advertisement or endorsement of activities which are otherwise prohibited by law, including but not limited to betting or gambling, shall be subject to rigorous scrutiny.
• Stringent measures under the Consumer Protection Act, 2019, will be initiated against involved stakeholders, including manufacturers, advertisers, publishers, intermediaries, social media platforms, endorsers, etc.

Status of gambling in India:

• The Constitution of India, under its Seventh Schedule, List II (State List), empowers State Governments to enact laws related to gambling and betting activities.
• Prior to independence, there was no such distinction, and the Public Gambling Act of 1867 regulated gambling and betting activities across the country.
• The Public Gambling Act of 1867 prohibits games of chance and probability, except lotteries.
  • However, it excludes “games of skill” from its scope.
• In 2023, the Ministry of Information & Broadcasting issued an advisory regarding advertisements, including surrogate advertisements, for online betting platforms.

About Central Consumer Protection Authority (CCPA):

• The CPA is a regulatory body that promote, protect and enforce the rights of consumers.
• It was established in 2019 under the Consumer Protection Act, 2019.
• The CCPA’s powers include:
  • Investigate violations of consumer rights.
  • Initiate complaints or prosecutions.
  • Mandate the recall of unsafe goods and services.
  • Enforce discontinuation of unfair trade practices and misleading advertisements.
  • Impose penalties on manufacturers, endorsers, and publishers of misleading advertisements.

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