MISLEADING ADVERTISEMENT AS AN UNFAIR TRADE PRACTICES: EXAMINING CONSUMER DECEPTION AND MARKET DISTORTION UNDER INDIAN LAW IN COMPETITION LAW

AUTHOR – RESHMA S, STUDENT AT GOVERNMENT LAW COLLEGE DHARMAPURI

BEST CITATION – RESHMA S, MISLEADING ADVERTISEMENT AS AN UNFAIR TRADE PRACTICES: EXAMINING CONSUMER DECEPTION AND MARKET DISTORTION UNDER INDIAN LAW IN COMPETITION LAW, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 6 (6) OF 2026, PG. 169-180, APIS – 3920 – 0001 & ISSN – 2583-2344. DOI – https://doi.org/10.65393/IJLRV6I619

ABSTRACT:

The Competition Act, 2002 does not expressly regulate misleading advertising, despite the significant influence of advertising on competitive market outcomes. In practice, misleading advertisements are primarily addressed under consumer protection law, leaving their broader impact on market structure and competitive fairness largely unexamined. This article argues that misleading advertising, though not specifically recognised under the Competition Act, operates as an unfair trade practice when it distorts consumer choice, alters demand patterns, and grants artificial competitive advantages to enterprises engaging in deceptive conduct. Such practices may disadvantage honest competitors, raise barriers to entry, and contribute to an appreciable adverse effect on competition. By analysing the objectives and flexible enforcement framework of the Competition Act, 2002—particularly the effect-based approach under Sections 3 and 4 read with Section 19(3) the study highlights the regulatory gap in addressing misleading advertising from a competition law perspective. The article suggests that purposive interpretation or regulatory clarification is necessary to bring misleading advertising within the ambit of competition law, ensuring that deceptive commercial practices are addressed not only as consumer harms but also as distortions of competitive market processes in India.

Keywords: Misleading Advertising; Unfair Trade Practices; Competition Act, 2002; Market Distortion; Consumer Deception.