Pharma Sector – Drug Pricing, NPPA, FDC, Generics, etc.

Patanjali Misleading Advertisement Case

Prelims Only | Governance | Mains Paper 2: Governance, Transparency & Accountability, Citizens Charters
Note4Students

From UPSC perspective, the following things are important :

Prelims level: Obiter Dicta Lexicon, Misleading Advertisements

Mains level: NA

Why in the news?

  • The Supreme Court ruling refusing to accept Patanjali’s MD’s unconditional apologies underscores the gravity of intentionally misleading advertisements and their repercussions.
  • Despite apologies, Patanjali’s breach of its commitment not to disseminate false claims about curing various illnesses led to this decision.

The Concept of Obiter Dicta Lexicon:

  • In the context of the criticism directed towards the Hon’ble Supreme Court Bench’s statement in the Patanjali case, the concept of “obiter dicta lexicon” may find relevance.
  • “Obiter dicta” is a Latin term that translates to “things said by the way” and refers to statements made by a judge in passing, which are not essential to the decision of the case at hand.
  • It refers to the use of language or expressions that are not directly relevant to the legal reasoning or decision-making process in a court judgment or opinion.

SC Bench Statement on Patanjali’s Apology:

  • The statement “we will rip you apart” is being criticized for being overly aggressive and potentially inappropriate for a judicial setting.
  • Therefore, in this case, the use of language that deviated from the core legal issues at hand and instead conveyed a sense of aggression or hostility could be viewed as part of the “obiter dicta lexicon.”

Understanding Misleading Advertisements:

  • The Consumer Protection Act, 2019 prohibits unfair trade practices, including misleading advertisements, and provides mechanisms for consumers to seek redressal for grievances related to misleading advertising.

Following are the types of Misleading Ads:

  1. False Claims: Advertisements with untrue statements about a product’s features or benefits.
  2. Exaggerated Claims: Ads that overstate a product’s benefits beyond reason.
  3. Omission of Material Information: Ads that hide important details consumers need to know.
  4. Comparative Advertising: Ads unfairly attacking competitors’ products.
  5. Endorsements and Testimonials: Ads using fake endorsements or testimonials.
  6. Health and Safety Claims: Ads with unproven health or safety benefits.
  7. Bait-and-Switch Tactics: Ads luring with false promises and switching to different offers.

Key Legislation dealing with Misleading Ads:

  1. Bureau of Indian Standards (Certification) Regulations, 1988
  2. Food Safety and Standards Act of 2006
  3. The Drugs and Magic Remedies (Objectionable Advertisements) Act of 1955 (DOMA)
  4. The Drug and Cosmetics Act of 1940
  5. The Cigarettes and Other Tobacco Products Act of 2003

 

Regulatory Authorities dealing with the Issue:

  1. Advertising Standards Council of India (ASCI): Ensures fairness and compliance with the ASCI Code in Indian commercials.
  2. Central Consumer Protection Authority (CCPA): Regulates consumer rights violations, unfair trade practices, and misleading marketing detrimental to public interests. It has issued the Guidelines for the Prevention and Endorsement of Misleading Advertisements, 2022.

About the Drugs and Magic Remedies (Objectionable Advertisements) Act of 1955 (DOMA):

  • The Magic Remedies Act encompasses the definition of “drug”.
  • It extends to include articles like talismans, mantras, and charms purportedly possessing miraculous healing powers.

Here are the key provisions of the Act:

  1. Prohibition of Certain Advertisements: The Act prohibits advertisements that claim to prevent or cure certain diseases or ailments listed in Schedule J of the Act through drugs or remedies. These diseases include conditions like cancer, tuberculosis, diabetes, and epilepsy.
  2. Prohibition of Misleading Advertisements: The Act prohibits advertisements that are false or misleading in any material particular regarding the nature, substance, quality, or potency of any drug or remedy.
  3. Cognizance of Offences: No court shall take cognizance of any offence under the Act except on a complaint made by the government or by a person authorized by the government.
  4. Exemptions: The Act provides exemptions for advertisements of drugs or remedies containing certain substances or preparations listed in Schedule J if the advertisement conforms to the conditions specified in the Schedule.

Violations made by Patanjali Ayurveda

  1. Drugs and Magic Remedies (Objectionable Advertisements) Act of 1954 (DOMA): By disseminating deceptive advertisements, Patanjali breached Section 4 of the DOMA, which prohibits the publication of false drug ads.
  2. Consumer Protection Act of 2019 (CPA): Patanjali made false claims in their advertisements about curing different illnesses, contravening Section 2(28) of the CPA, which defines “misleading advertisement”.
  3. Violation of MoU between Ministry of AYUSH and ASCI: Patanjali’s actions breached the memorandum signed between the Ministry of AYUSH and the Advertising Standards Council of India (ASCI), indicating non-compliance with agreed-upon standards for advertising practices.

PYQ:

[2012] With reference to consumers’ rights/privileges under the provisions of law in India, which of the following statements is/are correct?

1.    Consumers are empowered to take samples for food testing.

2.    When a consumer files a complaint in any consumer forum, no fee is required to be paid.

3.    In case of death of a consumer, his/her legal heir can file a complaint in the consumer forum on his/her behalf.

Select the correct answer using the codes given below:

(a) 1 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

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