ASCI
The Advertisement Standards Council of India (hereinafter, “ASCI”) was established in the year 1985 under Section 25 of the Companies Act, 1956. It has been defined as a “voluntary, self-regulatory council” which has been registered as a non-profit company. The view with which the ASCI was formed that all the advertising activities in India must be legal, truthful, decent, honest, with a sense of social responsibility and in line with fair competitive conditions.
The ultimate mission of the ASCI is to promote truthfulness, honesty, public decency, societal standards and to oppose hazardous products. The objectives of the ASCI include to “monitor, manage and promote” standards with respect to advertising practices in the country, with a view to ensure the following:
1. That advertising claims are presented with truthfulness and honesty, and that no misleading and false claims are made.
2. That the advertisements are not made and presented in a manner which is offensive to the general public in India, and that the standards of public agency are followed.
3. That no advertisement is made in respect of products or services regarded as hazardous or unacceptable to individuals or to the society.
4. That no unfair means are used by anyone player in the market, and that advertisements are made in a competitive manner.
The ASCI also has been established in order to codify, modify and adopt a code for fair advertisement, and that such code is modified from time-to-time.
Another objective includes to provide for a Consumer Complaints Council to entertain claims against advertisements in violation of the set standards and practices.
About The Case
The TATA Motors ASCI Violation Case is an important case in the Indian automobile industry that highlights the need for truthful and substantiated advertising practices. As one of the largest automobile manufacturers in India, TATA Motors has a significant presence in the country and plays a crucial role in the industry.
The case began when TATA Motors released an advertisement for its Tata Hexa car, which claimed that the car had "superior" off-road capabilities. However, the claims were found to be misleading and not supported by any scientific evidence. This led to a complaint being filed with the ASCI, which then conducted an investigation into the matter.
The ASCI found that TATA Motors had violated its code and directed the company to withdraw the advertisement and modify it appropriately to ensure that it did not make any misleading claims. The ruling was significant because it underscored the importance of adhering to the ASCI code and ensuring that advertisements were based on scientific evidence.
Background of the Case
In 2018, the company launched an advertisement for its SUV, Tata Hexa, claiming that the car had "superior" off-road capabilities. The advertisement showed the car being driven through challenging terrain, including rocky roads, riverbeds, and steep inclines, which suggested that the car was capable of handling any off-road terrain with ease.
Consumers who saw the advertisement lodged complaints with the ASCI, stating that the claims made in the advertisement were misleading and not substantiated by scientific evidence. The ASCI conducted an investigation into the matter and found that the claims made in the advertisement were not supported by any scientific evidence and were, therefore, misleading.
ASCI’S Investigation
The ASCI investigated the TATA Motors ASCI Violation Case after receiving complaints from consumers about the advertisement for the Tata Hexa SUV. The investigation focused on whether the claims made in the advertisement were substantiated by scientific evidence and whether they were likely to mislead consumers.
The ASCI's Consumer Complaints Council (CCC) reviewed the advertisement and found that the claims made in the advertisement were not supported by any scientific evidence and were, therefore, misleading. The CCC also noted that the advertisement had used visual effects to exaggerate the car's capabilities, which further contributed to the misleading claims.
The CCC concluded that the advertisement's claims of "superior" off-road capabilities were not substantiated and were therefore misleading. The CCC directed TATA Motors to withdraw the advertisement and to modify it appropriately to ensure that it did not make any misleading claims. The CCC also advised TATA Motors to ensure that its future advertisements were based on scientifically substantiated claims. TATA Motors complied with the ASCI’s directions and withdrew the advertisement. The company also modified its future advertisements to ensure that they were based on scientific evidence and did not make any misleading claims.
The ASCI’s investigation of the TATA Motors ASCI Violation Case highlights the importance of substantiating claims made in advertisements with scientific evidence and ensuring that advertisements are not likely to mislead consumers. The ASCI’s role in regulating advertising content in India is critical in protecting consumers from misleading advertisements and promoting fair competition among companies.
Significance of the case
The TATA Motors ASCI Violation Case is significant because it highlights the importance of substantiating claims made in advertisements with scientific evidence and ensuring that advertisements are not likely to mislead consumers. The case underscores the role of the ASCI in regulating advertising content in India and protecting consumers from misleading advertisements.
The ruling in this case serves as a warning to other companies that they must ensure that their advertisements comply with the ASCI code and that their claims are supported by scientific evidence. It also sends a message to consumers that they have the right to lodge complaints about advertisements that they believe are misleading or violate the ASCI code.
The case also highlights the importance of ethical advertising practices and fair competition among companies. Companies that make false or misleading claims in their advertisements gain an unfair advantage over their competitors, which undermines fair competition in the marketplace.
Overall, the TATA Motors ASCI Violation Case serves as an important reminder to companies to be truthful in their advertising and to ensure that their claims are substantiated by scientific evidence. It also underscores the important role of the ASCI in regulating advertising content in India and protecting consumers from misleading advertisements.