By S&S Co. Advocates & Solicitors · Published 29 September 2026 · Informational content, not legal advice: see our disclaimer
What Makes an Advertisement 'Misleading'?
Under the Consumer Protection Act, an advertisement is misleading if it falsely describes goods or services, gives a false guarantee, conveys an express or implied representation that would constitute an unfair trade practice, or deliberately conceals material information. The test looks at the overall impression the advertisement creates on an ordinary consumer, not merely whether each individual statement is technically accurate.
The CCPA's Enforcement Powers
The Central Consumer Protection Authority (CCPA) can inquire into or investigate violations of consumer rights, unfair trade practices and misleading advertisements, either on its own initiative or on a complaint, and can order discontinuation of the advertisement, impose penalties on the manufacturer, the advertiser and the endorser, and in serious or repeated cases prohibit the endorser from making any endorsement for a specified period.
Substantiation Is the Core Requirement
A recurring theme in CCPA enforcement is the requirement that any specific, measurable claim made in an advertisement be backed by adequate substantiation before the advertisement is published: not assembled defensively after a complaint is received. A claim about a measurable outcome, health benefit or comparative performance should be supported by evidence the advertiser can readily produce if asked.
Liability Is Assessed Separately for Each Party
The manufacturer, the advertising agency and any endorser are each assessed separately for their own role and degree of due diligence, rather than being treated as automatically jointly liable. An endorser who genuinely sought and reviewed supporting evidence before endorsing a product is in a materially different position from one who did not make any such inquiry.
Reducing Risk as a Business
Before an advertisement is published, businesses should maintain a documented substantiation file for every specific, measurable claim made, review advertising copy for implied claims (not just explicit statements) that could mislead an ordinary consumer, and ensure any endorsement arrangement includes a genuine review step rather than a template disclaimer alone.
Frequently Asked Questions
What penalties can the CCPA impose for a misleading advertisement?
The CCPA can order discontinuation of the advertisement and impose monetary penalties on the manufacturer, advertiser and endorser, and in serious or repeat cases can bar an endorser from further endorsements for a specified period.
Is an endorser automatically liable for a misleading claim?
No: the CCPA assesses an endorser's own due diligence separately, including whether they sought and reviewed substantiation before endorsing the product.
Does a disclaimer protect against liability for a misleading claim?
A generic personal-opinion disclaimer, without any underlying inquiry into the claim's accuracy, has not been treated as sufficient due diligence in CCPA enforcement.
Who can file a complaint about a misleading advertisement?
A complaint can be filed by an affected consumer, a consumer association, or the CCPA can act on its own initiative.
References & Further Reading
This article references the following statutes and general principles. It is educational content, not advice on any specific complaint.
- Consumer Protection Act, 2019, Sections 2(28), 21 and 89: misleading advertisements and CCPA powers.
- See our Consumer Protection practice area and related Legal News coverage for further reading.