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Legal aspect of Advertising | Rules and Regulation Controlling Advertising |


Advertising has many unethical activities - social, economic, and moral. It misleads the people by believing them what is not true. Today advertising company's face several legal restrictions. The government has taken the proper action to pass laws to regulate advertising and protect consumer interest.

        Advertising is regulated or monitored by several govt bodies such as the Advertising Standards Council of India ( ASCI ) and the Advertising Agencies Association of India ( AAAI ). In 1914, the Federal Trade Commission Act ( FTC ) come into existence to control deceptive advertising. FTC Act provides guidelines for ethical and unlawful advertising.


Need to Regulate Advertising

1.) Morality or Taste.

2.) Untruthful Advertising.

3.) Harmful Effects.

4.) Restricts Entry of New Units.



1.) Morality or Taste

Morality in simple words is the rules and set standards that define what is wrong or what is right. It makes the difference between a good or bad ones. Many people criticized advertising that it is often in bad taste. It affects culture and social traditions. Government bodies monitor the advertising that it should not harm the customers morality or taste.


2.) Untruthful Advertising

It is true that consumers get attracted to the products and services which are of good quality but available at a cheaper price. It saves customers money and provides them extra or the same feature as compared to substitute products. These ads are truth from the customer side as they believe that the product is real but untruthful from the advertiser side because they are misleading the customers.


3.) Harmful Effects

Advertising has a harmful effect on society. Nudity, bad habits, stereotype culture, surrogate advertising, etc. affect on society badly. Many people have criticized the advertising that affects social or cultural traditions. The government prohibits such types of advertising.


4.) Restricts Entry of New Units

Companies require huge funds to advertise their products, also existing companies have their brand value. New companies lack funds to advertise their products, so it creates trouble for them to take their place in the market. The government takes care that the existing company does not exploit new companies.


Rules and Regulation Controlling Advertising

Indian Penal Code ( IPC )

Drugs and Cosmetics Act

Prize Competition Act

Indian Copyright Act

Trademarks Act

Consumer Protection Act


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