How Can MSMEs Defend Against Misleading Advertisement Complaints?
Totally Harmless at the time of publishing, but Land you in legal trouble months later.
You run an MSME in Gurugram and advertised your product to be “POTS FREE”. You offer a service through an application and advertised the results you achieve through your service. You have done a comparative advertisement against your competition who is located in Kolkata. Now someone files a complaint saying that your claim is false. Messaging screenshots are circulated. You receive a legal notice. Now you panic about the penalty, loss of reputation and withdrawing the ad.
You as an MSME receive a notice for a Misleading Advertisement. You should not ignore this notice. There are provisions under Consumer Protection Act, 2019 which deals with misleading advertisement. The company could be asked to withdraw or modify their advertisement. And not to forget the hefty fine. The offence is also punishable with imprisonment in certain cases.
Just because you are a small businessman doesn’t mean the law doesn’t apply to you.
But that doesn’t mean every complaint your advertisement is misleading. What were you trying to say in your advertisement? What was the text that you put? Did you provide any disclaimers? What evidence do you have to back up your claim? Who is your audience and how would your audience interpret your message. These questions matter and you need to answer those questions.
I have seen many people make the situation a lot worse by deleting posts and sending aggressive replies and even agreeing that their Advertisement was “wrong”.
Don’t Panic. Respond Calmly.
Misleading Advertisement Complaint help from MSME Lawyers. Advocate BK Singh will analyze your advertisement, the complaint received and any proof you have to support your claim and guide you on the way forward.
We will not make up excuses for your wrong advertisement. But we will help you understand what you published, if your ad was misleading and how to handle the situation.
Why This Issue Matters for MSMEs Across India in 2026
Digital Marketing lets your small business reach audiences from every corner of the country. You could be based in Ghaziabad and selling your products to a customer in Bangalore. Mumbai. Jaipur or Chennai. All. Of. India. Within seconds. Through. Google. Instagram. Any E-commerce marketplace. YouTube or your very own website.
The more audience you reach. The more likelihood you invite to get impacted by regulations.
According to Section 2(28) of the consumer protection act 2019. If any Advertisement directly or indirectly makes a false claim about the nature of a product or service provided. Creates a false promise. Induces the consumer to believe that something is something it's not. Whether it is quantity. quality. or anything else. That Advertisement can be considered illegal. This also includes if anything is concealed or misrepresented.
Any complaint against such Advertisement that has affected or is affecting more than one person can be placed in front of the district collector. Or the commissioner of that area's state office. Or undertaken by the central consumer protection authority.
The biggest concerns an Msmes have. Will likely be questions of a commercial nature. Questions from your marketplace. Perhaps questions from Distributors. Or customers upload pics on Social Media. You will need your management and staff to answer those questions.
And that is where your MSME Lawyer will help you figure out what went wrong with your advertisement.
Just remember to consult your lawyer at the start. don't panic.
Quick Facts
- Even though it’s written under section 2(28) of Consumer Protection Act 2019 can be considered as Misleading Advertisement.
- Just because your business is MSME registered doesn’t exempt you from being liable under any consumer protection laws or false advertising act.
- One should read the detailed guidelines released by CCPA in 2022 regarding Misleading Advertisement and endorsements made by them.
- They have the power to order the alteration of advertisement or discontinuance of the advertisement if found misleading under Section 21 of Consumer Protection Act 2019.
- The manufacturer or endorser shall be liable to be punished with a fine which may extend to 10 lakh rupees for each such offence and 50 lakhs rupees for every subsequent contravention.
- False or misleading advertisement made by manufacturer or service provider CCPA has laid out a separate provision under section 89 for punishment.
- There should be proof available with you prior to or at the time of making any objective claim in your advertisement. Not merely to defend yourself when a complaint is received.
What Is a Misleading Advertisement Complaint Against an MSME?
Misleading ad-
You can file a complaint under misleading ad if an advertisement creates a false/misleading or incomplete material impression about the product/service. It does not need to be an overtly false sentence.
It can be -
The whole picture presented to you. Promise made. Something left out that should not have been left out.Comparison that shouldn’t have been made.Performance claimed but no evidence provided to support it.Prices & disclosures that don’t stand out enough to counter the main message.
Ex- An MSME can advertise saying " Delivery will be done in 2 hours ". If they cannot deliver the service at the said time all across their serving region ( which is kept in fine prints) you may have a problem of misleading impressions. You can say that their product is Indias No.1. They may not actually have any proof to support that statement. Maybe they advertise that it’s free but when you read ahead there is a processing fee.
Hence as you see there are multiple scenarios which result in different problems.
CCPA recently launched its 2022 guidelines. Where it talks about different clauses that needs to be followed while making advertisements. It covers topics such as bait ads, claiming something to be free, surrogate ads, ads for children and disclosures and responsibilities of the advertiser. It is also mentioned by the government that disclosures must not be made which can overpower a material fact or main message.
What Defence Options Can an MSME Consider?
Denial is not a defense. A defense starts with proof.
Each case is different, but here are some topics that should be looked into.
Did the Claim Have Merit?
These claims should be cross checked with any documents that were available at the time of the advertisement.
A manufacturer may claim that a device meets certain criteria. There could be lab reports, certifications, build sheets or supplier information that can be used.
Sales language will not override a lack of proof.
If you have the proper documentation to back up what you said, MSME Lawyers can help you build your argument.
Was the Advertisement Read Out of Context?
They can pull one sentence from your ad.
Earnest headlines can still get you into trouble.
So there needs to be context. Have the entire web page. Video, voice over, captions, package, fine print, pics etc.
Disclaimer won't save you if your title is misleading. Per the 2022_guidelines a disclaimer can not be used to bury info or try to correct a misleading statement.
Does the Complainant Have the Correct Legal Route?
One instance can be a person vs corporation as a whole dealing with a regulatory issue.
Another instance can be if someone was buying something for their business. The statute explains what qualifies as a “consumer” and has some exceptions. One exception to that statute if the good/service was used to provide the sole income for yourself.
So you would have to look at each situation individually. You cannot assume that because someone is buying something from a company that he is not a consumer.
If someone were to say "Well I am not considered a consumer so I cannot use the consumer commission." Then that still leaves the statute open to allow false advertisement claims.
Was Corrective Action Taken Promptly?
You can still be held responsible for claims that you've advertised if you delete or edit your ad to clarify or rectify the dispute. This WILL play a role in your business if you DO correct or clarify your ad content.
MSME Law Team can help you figure out if you need to modify your ad immediately or if you can defend your claim. Just remember to keep records of everything.
What Documents Should an MSME Preserve?
Don’t delete your campaign when you get a complaint – In most cases it’s better to save then defend.
Here’s What to SAVE:
- The ad exactly how it was advertised;
- Screenshot of ad including date and website it was on;
- Video, script and audio of ad along with any creatives used;
- Product information/spec sheets;
- Lab reports if available;
- Certifications the product may be leaning on to make a claim;
- What claim was the supplier providing the product to you was able to make;
- Any pricing information/offers;
- T&Cs;
- Bill/transaction history you have with the customer.
- Correspondence with any media houses/influencers used;
- Internal paperwork that approved the ad going live;
- Research that you used to support any comparative/superiority claims;
- Notice/complaint you received and any response you may have already given; and
- If you made an amendment/retractation be sure to keep this too.
It is imperative that you save the web page as it was when you advertised. Overtime we have found that the client will often have saved the amended web page and not be able to locate where their original ad is – the one being complained about.
Have Advocate BK Singh review the information. He can help you sort out what documentation will help your case and what will hurt.
When Should an MSME Consult a Lawyer?
You may want to consult with an attorney if you have received a CCPA letter, Consumer Commission, regulator, Legal Notice or Claim demanding a large sum of money.
Your promoting children, health claims, financial claims, food, medicine or environmental claims or another issue that would fall under strict consumer protection..
The moment you know about the dispute, act. Don’t wait for them to contact you. MSME Lawyers can review protecting your advertisement, any ongoing liability and what changes you can make moving forward without admitting any wrongdoing if your ad is still running.
If you have existing litigation that could involve these types of cases see our MSME Litigation page. MSME Litigation & Court Cases.
How Can MSME Lawyers Help?
Lawyers practicing MSME Law will help you review the complaint and read the entire advertisement rather than believe the complainer at face value. It will cover interpretation of said advertisement, Documentary evidence,Applicable consumer law,Which forum to approach,Taking a response and whether to amend the advertisement in question.
If your matter is part of a larger commercial dispute then the business might have to bifurcate the matter of advertisement from that of contract/payment/supply etc. Please visit MSME Dispute Resolution to read about our dispute resolution services.
BK Singh Advocate can assist you if you have received any such notice in Delhi NCR and other regions of India. We can assist you with gathering information and preparing a reply. No lawyer can guarantee that your case will be thrown out because it all depends on the content of your advertisement, evidence, the law you have followed and circumstances surrounding it.
If you would like to schedule a consultation with the lawyer, click here to Hire an MSME Lawyer.
Frequently Asked Questions
1. Will I be penalised if my MSME creates a misleading advertisement?
Yes. If you are a manufacturer, trader or service provider then you can be penalised for publishing misleading advertisements. Registering as an MSME does not protect you from consumer law. CCPA can pass various directions and levy penalties under section 21.
Contact MSME Lawyers to see if your advertisement qualifies as misleading under the Act.
2. What constitutes an advertisement as misleading?
Section 2(28) of the Act explains that the following factors should be considered when determining if an advertisement is misleading. Some of these include –
Advertisements should be considered collectively.
Read – Section 2(28) CCPA.
3. Is there any defence I can use if my MSME created a misleading advertisement?
Yes. In some cases if you include a disclaimer you may have a defence.
Keep in mind that as per CCPA guidelines, a disclaimer cannot be used to obscure key information or override the main message of an advertisement.
Contact Advocate BK Singh to see if your disclaimer works as a defence.
4. Should I delete my advertisement if it’s misleading?
Firstly, take screenshots of your entire advertisement.
You can then decide to delete or correct your advertisement based on what you have been accused of. If you delete your advertisement you lose proof of what your advertisement stated.
Contact MSME Lawyers to see if you should delete your advertisement.
5. Can CCPA ask me to withdraw my advertisement?
Yes. The CCPA can order you to withdraw your advertisement if found misleading after their investigation under Section 21.
A person is also entitled to a hearing before an order is passed under Section 21.
Read Section 21
6. What is the maximum penalty that can be awarded against me if my advertisement is misleading?
The CCPA can fine you up to 10 Lakhs. And if you are found repeating the offence you can be fined up to 50 Lakhs. The act also states fines that can be awarded to publishers and endorsers of the advertisement.
You can be penalised depending on your role in the advertisement.
7. Can I face jail time for creating a misleading advertisement?
Yes. The Consumer Protection Act 2019
If you are a manufacturer or a service provider who publishes a false or misleading advertisement which is prejudicial to the interests of the consumer you can face punishment under section 89.
Accused do not automatically mean you are guilty of the offence.
Read Section 89 CCPA.
8. Are there any documents that will help me if my advertisement is misleading?
If your advertisement say your product has certain features and you have documents to prove those features. Then yes, those documents will help you.
For example, documents like testing reports, certificates, pricing etc. Your advertisement would also help.
Contact Advocate BK Singh to see if the documents you have work as a defence for you.
9. Can someone file a complaint about my MSME advertisement?
Yes someone can file a complaint about your advertisement. Whether you can be held liable depends on who filed the complaint and what did they use to file against you.
It might be someone from your competition who wants to cut you from the market.
Read This To Learn About The Types Of Complaints You Can Be Tried For
There are various aspects that your competitor can file complaints about. Contact MSME Lawyers to see what offence you can be charged with.
**10. How quickly do I need to respond to a misleading advertisement complaint?**
Timely. First figure out how long you have to respond to the notice. After you know this gather all your documentation. Don’t admit anything in your statement because you might want to change your statement later.
Contact Advocate BK Singh to know more about responding to your case.
Final Thoughts
It doesn’t have to be an irate customer complaining to your business. When you receive a misleading advertisement complaint from an MSME, The Consumer Protection Act 2019 has provisions that enable CCPA to order you to modify or discontinue running the advertisement and also pay statutory penalty.
You must know what your defense is built upon.
What was being advertised? Was it truth? Can you substantiate your claim? Did you exclude critical facts? What is the advertisement saying altogether? At which forum has this been filed?
Know your answers to these questions and you can begin drafting that email to set your side of story up or fight for your business.
MSME Lawyers Advocate BK Singh can assist MSME's with any Advertising Complaints in Delhi NCR Delhi, New Delhi, Noida, Greater Noida, Ghaziabad, Gurugram, Faridabad and all over India.
To learn more about MSME Lawyers and how they can help your MSME feel free to visit MSME Lawyers.
