Power of Central Authority to issue directions and penalties against false or misleading advertisements
Commencement. 24th July, 2020.-- S. 2 clauses (4), (13), (14), (16), (40), s. 10 to 27 (both inclusive), sub-clause (iv) of clause (a) of sub-section (1) of section 58, s. 88, 89, 92 and 93, 94, 96, 97 and 99, clause (f) to (m) of sub-section 2 and clauses (zg), (zh) and (zi) of sub-section 2 of s. 101, 104, vide notification No. S.O. 2421(E), dated 23rd July 2020, see Gazette of India, Extraordinary, Part II, sec. 3(ii).
Section 21 of the Consumer Protection Act, 2019 deals with power of Central Authority to issue directions and penalties against false or misleading advertisements. Where the Central Authority is satisfied after investigation that any advertisement is false or misleading and is prejudicial to the interest of any consumer or is in contravention of consumer rights, it may, by order, issue directions to the concerned trader or manufacturer or endorser or advertise The Act was enacted on 09 Aug 2019.
(1) Where the Central Authority is satisfied after investigation that any advertisement is false or misleading and is prejudicial to the interest of any consumer or is in contravention of consumer rights, it may, by order, issue directions to the concerned trader or manufacturer or endorser or advertiser or publisher, as the case may be, to discontinue such advertisement or to modify the same in such manner and within such time as may be specified in that order.
(2) Notwithstanding the order passed under sub-section (1), if the Central Authority is of the opinion that it is necessary to impose a penalty in respect of such false or misleading advertisement, by a manufacturer or an endorser, it may, by order, impose on manufacturer or endorser a penalty which may extend to ten lakh rupees:
Provided that the Central Authority may, for every subsequent contravention by a manufacturer or endorser, impose a penalty, which may extend to fifty lakh rupees.
(3) Notwithstanding any order under sub-sections (1) and (2), where the Central Authority deems it necessary, it may, by order, prohibit the endorser of a false or misleading advertisement from making endorsement of any product or service for a period which may extend to one year:
Provided that the Central Authority may, for every subsequent contravention, prohibit such endorser from making endorsement in respect of any product or service for a period which may extend to three years.
(4) Where the Central Authority is satisfied after investigation that any person is found to publish, or is a party to the publication of, a misleading advertisement, it may impose on such person a penalty which may extend to ten lakh rupees.
(5) No endorser shall be liable to a penalty under sub-sections (2) and (3) if he has exercised due diligence to verify the veracity of the claims made in the advertisement regarding the product or service being endorsed by him.
(6) No person shall be liable to such penalty if he proves that he had published or arranged for the publication of such advertisement in the ordinary course of his business:
Provided that no such defence shall be available to such person if he had previous knowledge of the order passed by the Central Authority for withdrawal or modification of such advertisement.
(7) While determining the penalty under this section, regard shall be had to the following, namely: --
(a) the population and the area impacted or affected by such offence;
(b) the frequency and duration of such offence;
(c) the vulnerability of the class of persons likely to be adversely affected by such offence; and
(d) the gross revenue from the sales effected by virtue of such offence.
(8) The Central Authority shall give the person an opportunity of being heard before an order under this section is passed.
Section 21, The Consumer Protection Act, 2019 (Act 35 of 2019).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… the 7 th respondent to enact the appropriate legislation for providing the consumer centric remedies through legislation, and - iv)Grant such further reliefs as this Honourable Court may be pleased to grant on the facts and circumstances of the case. - 2. The main challenge in the writ petition is that Section 21 of the Consumer Protection Act, 1986 is unconstitutional. 3. It is appropriate to refer Section 21 in this context, which reads as follows; " 21. Jurisdiction of the National Commission .- Subject to the other provisions of this Act, the National Commission shall have jurisdiction,- (a)to …
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… Met with the said situation, the Bank has already approached the National Consumer Disputes Redressal Commission, New Delhi invoking the course and procedure as provided under Section 21 of the Consumer Protection Act and the case was listed for admission on 11.12.2013. In the meanwhile, coercive proceedings were caused to be pursued by the respondents, which made the petitioner to approach this Court by filing this writ petition. 2. When the matter came up for consideration before this Court on …
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… (C). NO. 662 OF 2004 --------------------------------------- Dated this the 15 th day of June, 2007. J U D G M E N T The grievance of the petitioner is with regard to Exhibit P6 order passed by the first respondent. Under Section 21 of the Consumer Protection Act, 1986, the remedy open to the petitioner is to pursue the matter before the National Commission. Therefore, without prejudice to such liberty, this writ petition is dismissed making it clear that in the event of such remedy being pursued before the National Commission within one month …
Made under this section, and citing it
2 instruments name this provision in its title or its text without being made under it.
- The Tripura Consumer Protection (Appointment, Salary, Allowances and Conditions of Services of President and Members of the State Commission and District Forum) Rules 2018Rule 2019
- The Tamil Nadu Consumer Protection (Appointment, Salary, Allowances and conditions of service of president and members of the State Commission and District Forum) Rules,2018Rule 2018
Questions about Section 21
What does Section 21 of the Consumer Protection Act deal with?
Section 21 of the Consumer Protection Act is headed "Power of Central Authority to issue directions and penalties against false or misleading advertisements". Where the Central Authority is satisfied after investigation that any advertisement is false or misleading and is prejudicial to the interest of any consumer or is in contravention of consumer rights, it may, by order, issue directions to the concerned trader or manufacturer or endorser or advertise
How do I find court cases under Section 21 of the Consumer Protection Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Consumer Protection Act 21, section 21 Consumer Protection Act, section 21 of the Consumer Protection Act. People searching for it also type consumer protection act 2019 section 21. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
What should I read with Section 21 of the Consumer Protection Act, and has it changed?
3 other provisions in this corpus refer back to it. 2 instruments name it without being made under it, most recently The Tripura Consumer Protection (Appointment, Salary, Allowances and Conditions of Services of President and Members of the State Commission and District Forum) Rules 2018 (2019), then The Tamil Nadu Consumer Protection (Appointment, Salary, Allowances and conditions of service of president and members of the State Commission and District Forum) Rules,2018 (2018).
When was Section 21 of the Consumer Protection Act enacted?
Section 21 of the Consumer Protection Act, cited as Consumer Protection Act 21, was enacted on 09 Aug 2019 as Act 35 of 2019. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions3979 words
- 38. Procedure on admission of complaint1381 words
- 101. Power of Central Government to make rules916 words
- 39. Findings of District Commission553 words
- 102. Power of State Government to make rules517 words
- 47. Jurisdiction of State Commission493 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.