Next due
20 OCTGSTR-3B · Summary return · Sep 2026in 4 days 21 OCTTax Audit Report · Form 3CA/3CB · AY 2026-27 · extended from 30 Sepin 5 days 30 OCTAOC-4 · Financial statements · FY 2025-26in 14 days 7 NOVTDS / TCS deposit · Deducted in Oct 2026in 22 days 11 NOVGSTR-1 · Outward supplies · Oct 2026in 26 days 15 NOVPF & ESI · Contributions · Oct 2026in 30 days 21 NOVITR filing · Audit cases · AY 2026-27 · extended from 31 Octin 36 days 29 NOVMGT-7 / 7A · Annual return · FY 2025-26in 44 days
All due dates

Guideline 12 of the Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022: the duties of manufacturers, service providers, advertisers and advertising agencies

Each of the four parties must ensure that descriptions, claims and comparisons about objectively ascertainable facts can be substantiated and produced if the CCPA asks. Claims...

Published
Updated
Reading time
8 min
Views
8
Questions
7 answered
  • Expert Reviewed
  • Medium Complexity
  • In-Depth Guide
Topic
Consumer Protection
Published
October 3, 2026
Last updated
Oct 3, 2026
Reading time
8 min
0:00
Last updated: October 2026Verified against: Government sources

Guideline 12 is the duty clause. Every manufacturer, service provider, advertiser or advertising agency to whom the guidelines apply must make sure that factual claims can be substantiated, that research is identified by source and date, that references to others are authorised, that nothing misleads by implication or omission and that the advertisement does not exploit consumers' trust or lack of knowledge. It also lays down rules on "up to" cover-period claims and on prize competitions.

The guidelines were issued by the Central Consumer Protection Authority (CCPA) on 9 June 2022 under section 18 of the Consumer Protection Act, 2019. This article takes them as amended up to 3 October 2026 (no amendment listed by the CCPA). Later amendments should be checked on the CCPA website. Consequences follow under the Act, in section 21 and sections 88 and 89; this article quotes no penalty.

Manufacturers, agencies and marketing teams who must keep a substantiation file can ask for compliance advisory support on what to hold and when to produce it.

Who is bound

Guideline 12 applies to "every manufacturer, service provider, advertiser or advertising agency to whom these guidelines apply". The definitions and application are in the article on guidelines 1 to 3. Because the duty is placed on all four, a brand cannot leave the duty to the agency, and an agency cannot assume the brand has checked the claim.

The duties in clauses (a) to (e)

ClauseDuty
(a)All descriptions, claims and comparisons about objectively ascertainable facts are capable of substantiation, and the substantiation is produced if the Central Authority requires
(b)Where claims are expressly based on or supported by independent research or assessment, the advertisement indicates the source and date
(c)No reference to a person, firm or institution in a manner that gives an unjustified advantage to the product or brings that person, firm or institution to ridicule or disrepute, unless the advertiser obtains permission
(d)No statement or visual that directly, by implication, by omission, by ambiguity or by exaggeration is likely to mislead consumers about the product, the advertiser or any other product or advertiser
(e)The advertisement is framed so as not to abuse consumers' trust or exploit their lack of experience or knowledge

Clause (a): substantiation

The clause covers "objectively ascertainable facts", meaning statements that can be checked, such as battery life, ingredient content or delivery time. Opinions and obvious boasts are different. The advertiser must be able to produce the substantiation "if required by the Central Authority". In practice, this means a file of test reports, data and records ready before the advertisement runs.

Clause (b): source and date

If the advertisement says it is "based on" or "supported by" research, it must indicate who did it and when. An advertisement saying "clinically proven" without naming the source and date of the research does not meet this clause where the claim is expressly based on research.

Clause (c): references to others

A comparison that names a competitor in a way that ridicules it, or a mention of an institution to borrow its standing, needs the permission of that person, firm or institution. An invented example: a tutorial app advertises that it is "used by students of a famous school" without that school's permission, giving the app an unjustified advantage. Clause (c) is not met.

Clause (d): the many ways to mislead

The text lists five routes to misleading: direct statement, implication, omission, ambiguity and exaggeration. A partly true headline with a missing condition, or a visual that suggests a feature the product lacks, falls within it. The clause also protects other advertisers' products: a misleading comparison about a competitor is within it.

Clause (e): trust and inexperience, with two illustrations

Clause (e) says the advertisement is framed so as not to abuse trust or exploit lack of experience or knowledge, and gives two illustrations.

  1. Cover periods and prices (clause (e)(i)). An advertisement may not make claims that use open-ended expressions for the period of cover of a product, such as "up to" a number of years, or "Prices from as low as" a figure. It must instead clearly indicate a fixed period of cover for the product or a fixed price at which the product is being offered. Where different parts have different periods of cover, it must clearly indicate the minimum and maximum of the periods that apply to the relevant parts or components.
  2. Lotteries, prize competitions and gifts (clause (e)(ii)). If the advertisement invites the public to take part in lotteries or prize competitions permitted under any law, or holds out the prospect of gifts, it must clearly set out all pertinent material terms and conditions so that consumers can obtain "a true and fair view of their prospects" in such activities.

An invented example: a fan manufacturer advertises cover "up to five years". Under clause (e)(i) the advertisement should say, for instance, that the motor has one period and the body another, with the minimum and the maximum stated. "Up to" alone does not do this.

The proviso: humour and obvious exaggeration

The proviso says "such obvious untruths or exaggerations as are intended to amuse or catch the eye of consumers are permissible subject to the condition they are clearly seen as humorous or hyperbolic and not likely to be understood as making literal or misleading claims for the advertised product". A cartoon in which a detergent defeats a monster does not breach clause (d). A claim that a car engine "never stops" in a serious tone is different, because a reader may take it literally.

A substantiation checklist

  1. List every factual claim in the advertisement.
  2. For each, identify the document that proves it (test report, certificate, data set).
  3. For research-based claims, note the source and date, and print them in the advertisement.
  4. Obtain written permission before naming or showing any person, firm or institution.
  5. Replace "up to" and "from as low as" with fixed figures, or state the minimum and maximum.
  6. For contests and gifts, put the main terms in the advertisement.
  7. Keep the file ready for a request from the Authority.

Where guideline 12 sits

Guideline 12 builds on the validity conditions in the article on guideline 4. The next guidelines, on endorsement due diligence and material connection, are explained in the article on guidelines 13 to 15. The disclaimer rules that often interact with clause (e) are in the article on guidelines 8 to 11.

Need help building a substantiation file?

If you advertise product claims, a ready file saves days when the Authority asks. Our compliance advisory team can review your claims, identify what proof is needed and set a routine for keeping it.

Key takeaways

  • All four parties (manufacturer, service provider, advertiser, agency) carry the duties.
  • Claims about objectively ascertainable facts must be capable of substantiation and produced when the Authority requires.
  • Research-based claims must show the source and date.
  • References to others need permission where they confer unjustified advantage or bring ridicule or disrepute.
  • "Up to" cover periods and "from as low as" prices are not acceptable; use fixed periods or prices, or minimum and maximum for parts.
  • Obvious humour and exaggeration are allowed if clearly seen as such.

Read next

Disclaimer: Based on the rules, regulations and guidelines named above as published in the Gazette of India or on the CCPA website, with the amending notifications the article names (consulted on 3 October 2026). Later amendments, the Consumer Protection Act, 2019 provisions referred to, State rules and CCPA advisories should be checked. This article is general information, not legal advice; check the official text before acting.

Quick recapKey facts & short answers

Key Facts About Guideline 12

  • Applies in: All states across India, under the relevant central law.
  • Mode: Mostly online via the official government portal.
  • Typical timeline: Ranges from a few days to a few weeks depending on the case.
  • Non-compliance: May attract penalties, interest or late fees.
  • Expert help: TaxClue completes the entire process end to end for you.

Who must substantiate advertising claims?

Every manufacturer, service provider, advertiser or advertising agency to whom the guidelines apply (guideline 12(a)).

When must the substantiation be produced?

If required by the Central Authority.

Good compliance is boring by design; the drama starts only when something has been skipped.

— TaxClue Compliance Desk

Guideline 12: a key compliance topic in Indian tax and corporate law that businesses and individuals must understand to remain compliant.

Related Services & Guides

Was this article helpful?
About the author
13,350 articles
Vikas Sharma Verified expert Tax & Compliance Expert

Experienced in company registration, GST, trademark, and compliance. Helping Indian businesses stay compliant.

Last reviewed: Live

Disclaimer: This article is for general informational purposes only and does not constitute professional tax, legal or financial advice. Laws, rates and due dates change and can vary by individual case — always verify with the relevant government source (e.g. mca.gov.in, incometax.gov.in) or consult a qualified professional before acting. TaxClue accepts no liability for decisions taken based on this content.

People also ask

Questions, answered

Short, direct answers to the 7 questions readers ask most on this topic.

Every manufacturer, service provider, advertiser or advertising agency to whom the guidelines apply (guideline 12(a)).

If required by the Central Authority.

Where claims are expressly based on or supported by independent research or assessment, the advertisement must indicate the source and date (clause (b)).

No. Clause (e)(i) asks for a fixed period, or the minimum and maximum periods for different parts.

Clause (e)(i) says it should indicate a fixed price instead.

Yes. Clause (e)(ii) requires all pertinent material terms and conditions so that consumers get a true and fair view of their prospects.

Obvious untruths or exaggerations meant to amuse are permissible if clearly humorous or hyperbolic and not likely to be understood literally.