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Supreme Court: Employer is not permitted to alter the advertised qualifications in the middle of the selection process

Case Title: Anil Kishore pandit versus The state of Bihar and others

Case No: Civil Appeal No.1566 of 2024

Decided on: February 02,2024

Quorum: Hon’ble Ms.Justice Hima Kohli and Hon’ble Mr. Justice Ahsanuddin Amanullah

Facts of the case:

The District Employment Officer, West Champaran, Bettiah, issued a memo on October 13, 2011, requesting applications from qualified individuals for the position of amins according to a contract. For the Economic Backward Class 3 category, the age cut off date for the District level vacancy was set at 40 years old as of January 1, 2011 for both men and women. The appellant responded to the October 13, 2011, advertisement by applying for the specified position. There is no question about the appellant’s age as of January 1, 2011, which was 39 years, 11 months, and 27 days. That is to say the petitioner was eligible. The age requirements for the advertised topic. According to the records, on November 15, 2011, another notice was posted on the Notice Board of the Collectorate, West Champaran, in response to a letter 4 that was later sent by the Principal Secretary of the Revenue and L.R. Department, Government of Bihar. The notice stated that interested parties could apply until November 30, 2011.The appellant showed up on January 22, 2012, for the written exam. After that, his name was put at Serial No. 2 on a merit list that was created for counseling. On December 4, 2012, the District establishment created a selection list. His name was listed under Serial No. 9, while Respondent No. 8’s name was listed under Serial No. 11. The appellant’s candidature was withdrawn due to his age, as stated in the notes column. The appellant, who was upset by the aforementioned, unsuccessfully requested that the outcomes be corrected in a representation made to the District Magistrate.

Appellant Contentions:-

The appellant has submitted the representation to the district court for reconsidering of the result. But there is no use. Then the appellant has filed the writ petition before the High court with a direction issued to the collector to examine his grievance. That the entire selection process has been carried on basis of treating the cut off. Learned counsel for the appellant has said that the division bench ignored the date of advertisement which was mentioned the cut off in 1st January,2011.The respondents changing the cut off was not given in the advertisement but was places in notice board if collector office. It was not the procedure to be done.

Respondent Contentions:-

The respondent did not issue a communication after giving public advertisement fixing the cut off date for the ae of candidates. It was based on discussion which was done internally with in the department and they decided to give a fresh notice changing the date .The earlier advertisement which was given by the respondent gas been applied by the appellant. Based on the advertisement his age was permitted . He was in starting number in selection list and he was also appointed for the post .

Court Analysis and Judgement:-

The court said that the impunged judgement has been quashed and set aside. It is deemed appropriate to set the clock back and uphold the earlier order passed by the respondent appointing the appellant to the post of amin by the reckoning age of candidates in EBC category as 40 years. The appointment of the appellant has been restored from the date of his initial appointment without any break. And the appellant would give all the notional benefits except the actual wages. He will not be discharged from his duties to the said post for all these years. A letter has been given that the reappointment of the appellant to the post which was issued by the respondent on the above terms which was given within two weeks from today. The appeal has been allowed.

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Judgement Analysis Written by – K.Immey Grace

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Supreme Court puts an advertisement ban on Patanjali stating the brand is deceiving masses.

ABSTRACT

This article talks about the recent supreme court ban on the advertisement published by Patanjali. The ban was due to the misleading nature of the advertisements contributing to the dissemination of false information in the healthcare industry. The healthcare industry is frequently prone to misleading advertisements by AYUSH companies making false claims to the public for profit. Several government enactments and regulatory bodies and their contributions to control false marketing have been listed. The article delves deeper into the legal technicalities involved, current legislation on the same and plausible solutions to combat the problem.

INTRODUCTION

What’s the news, why in news?

Patanjali is in the news again for all the bad reasons. The Hon’ble Supreme Court has banned misleading advertisements published by Patanjali. The face of this brand is the widely known yoga guru Baba Ramdev. On 23rd August, 2023 the Supreme Court while hearing a writ petition filed by the Indian Medical Association condemned the misleading advertisements published in the electronic media by Patanjali. Such ads released by the company aims at making false claims about ‘curing’ diseases like diabetes, asthma etc. The claims are referred to as ‘false’ since there is no scientific backing to substantiate the same. The Chief Justice stated that Baba Ramdev can rightfully promote his practices of yoga and brand, but it is unnecessary for him to criticise other systems and practices in medicine. On 21st November, 2023 the Supreme Court had again issued a severe warning to Patanjali for its unabating misleading advertisements. Justice Amanullah also mentioned that the court will go to the extent of charging a fine of Rs. 1 crore on every product that claims to treat and ‘cure’ diseases. The court also mentioned that it has no intention of sparking a debate as to which system of medicine is better allopathy or ayurveda. The aim is to prevent the spreading of misinformation. The counsel for the brand guaranteed the court that no such advertisements will be made in any way including making statements in the media. The petition also addresses Baba Ramdev’s allegations blaming allopathy behind deaths during COVID-19. The court had also directed the Centre to take strict actions against the conduct of such companies under the Drugs and Magic Remedies (objectionable advertisements) Act, 1954. In its hearing on 27th February, the Hon’ble Court criticised the Centre for not taking any action. The court criticised the laidback attitude of the government as the petition was filed in 2022, and it has been two years since then. The Centre contended that under the Drugs and Magic Remedies Act, 1954 it is the responsibility of the state governments to ensure implementation but the court justly said that it is the duty of the centre to inform the state governments about the same and sought action. The IMA also informed the bench that Patanjali even after assuring the court to cease from producing misleading advertisement in its previous hearing has continued to do the same. The brand disregarded the orders given by the court which led the court to ban the advertisements of products related to diseases under the Drugs and Magic Remedies Act, 1954.

What inferences can be drawn from this news?

Yoga, an ancient practice, has crossed the boundaries of our country due to its innumerable health benefits. Baba Ramdev, a yoga guru, rose to fame as a teacher and promoter of the age-old practice. His popularity led him to start Patanjali Ayurved in collaboration with Balkrishna. The masses of the country have immense trust in Baba Ramdev and the products of his brand. Patanjali products like toothpaste, oils are widely used by the public. In light of these facts, when such a brand spreads misinformation, it influences the public at large. Making false claims of curing dangerous diseases can lead to severe consequences. It is important for people having serious health problems to consult professional doctors. The court proceedings are the testament of the negligent behaviour of the government and the concerned authorities in taking strict actions against such advertisements. The government continues to play the blame game instead of rising to action.

LEGAL FRAMEWORK IN PLACE

Drugs and Magic Remedies (Objectionable Advertisement) Act, 1954[1]

This act aims to manage and regulate the promotion and advertisement of drugs in the context of claiming that such drugs have magical healing properties. Section 2©[2] of the act defines magic remedy which entails advertisement of drugs claimed to ‘cure’, mitigate, prevent or treat any kind of disease mentioned in schedule 1 of such act. Section 4 of the act clearly prohibits advertisements that aim to deceive the public and trick them into voluntary medication. Any violation of the provisions of this act shall amount to criminal offence and shall attract penalty amounting to imprisonment up to one year. The act aims to prevent self-medication by people as well as regulate the advertisement industry in this regard so as to prevent them from influencing the masses.

The constitutionality of this act was challenged in the case of Hamdard Dawakhana v. Union of India[3] on the grounds that it is violative of Article 19(1)(f) & (g)[4]. The court held that it is true that advertisement is a part of the freedom of speech, but the true essence and purpose of advertisement is to promote goods and services. And when this is done, it comes under the purview of trade and commerce since it is no longer the expression of ideas.

 The Drugs and Magic Remedies Objectionable Advertisement Rules, 1955

Rule 3 authorises the concerned persons to launch an investigation on advertisements that prima facie promotes drugs on false pretences. It also empowers the concerned authorities to cease the manufacturing and production of the same.

The Cable Television Network Act[5] and The Cable Television Network Rules[6]

The aforementioned act and rules have established a code for the publication of advertisements which is to be followed by all the concerned persons. Any violation will amount to imprisonment for a year or imposition of fine of Rs. 2000 or both as the case may be. An amendment to the rules in 2006 provides that the advertisement should not violate the code of conduct set out by the Advertisement Standards Council of India.[7]

Consumer Protection Act, 2019

The Consumer Protection Act, 1986 was repealed and replaced by this act to upkeep with latest technological developments. The primary objective of the act is to safeguard consumer interests from the harsh practices adopted by sellers and to establish relevant authorities for the settlement of consumer disputes.

Advertisement defined in section 2(1)[8] of the act includes publishing in electronic media.

Section 9[9] of the act states the rights of the consumers which includes the right to be protected against the marketing of goods, products or services which are hazardous to life and property; the right to be informed about the quality, quantity, potency, purity, standard and price of goods, products or services, as the case may be, so as to protect the consumer against unfair trade practices and the right to consumer awareness.

Section 2(28) defines misleading information as an act of publicising and spreading false information and guarantee about the nature, substance, outcome etc of the product. It basically states all the ways in which sellers fool the consumers[10]. The consumer must also act in a reasonable manner.

Section 2(47)[11] of the act gives a comprehensive definition of unfair trade practices which includes advertisements made on any platform spreading misinformation about the product being sold by the company.

Section 10[12] of the act talks about the establishment of the Central Consumer Protection Authority. The act entails the strength, process of appointment, powers and procedures od the CCPA.

Advertising Standards Council of India (ASCI)

ASCI is a not-for-profit self-regulatory body established for the regulation of advertisements under the companies act, 1956 to preserve consumer interests. It hasn’t been established under any legislation or government hence it does not constitute laws for the public or the related industries. People in the advertisement industry and the representative of aggrieved individuals formulate and abide by the principles formulated and laid down by the voluntary body. The principles of this body are Honesty, Decency, Non-harmfulness, and Fair play in a competition.

National Advertising Monitoring System (NAMS)

This regulatory body has been established by ASCI in 2012 in collaboration with TAMS Media to trace deceptive advertisements. They have been tasked to keep a track of newspapers as well TV channels in regional languages. It overlooks advertisements published in a plethora of sectors including banking, finance, health, medicine etc.

Uniform Code of Pharmaceuticals Marketing Practices (“UCPMP Code”)[13]

UCMP is another such regulatory body instituted under the Department of Pharmaceuticals in 2014 to restrict unethical and immoral practices used by companies. Any publicity of drug promotion must be approved by the respected authority and such information must be confirmed by the concerned bodies as well.

CRITICAL ANALYSIS

Advertisements are important in disseminating vital information to the public as they can help create awareness about a certain cause and help in the disclosure of such information in a quick span of time. In current times, companies misuse advertisements to get consumers to purchase their products. They make extravagant claims to sell their products for profit maximisation. They have frayed from the object of social responsibility to just tricking people. Such a spread of misinformation, especially in the medical industry, can prove to be fatal. The claims made by Patanjali to cure diseases such as diabetes that require special attention and care by medical professionals are not only misleading but outrageous. There is no scientific backing to this claim made by the brand.

Big companies by means of visual aid persuade the consumers further escalating the problem of misinformation. The target audience of these companies are easily susceptible to the methods used by them and are blindsided. Celebrities are made the ambassadors of such brands to reach a wide variety of audiences. Multiple channels of communication such as newspaper, internet are utilised to target different age groups. Even though the consumer protection act promises to protect the customers from evil practices adopted by the companies, hardly any action has been taken against such conduct. Misleading advertisements violate a plethora of consumer rights that have been guaranteed under the Consumer Protection Act. It violates the right of the consumers to information. Consumers have the right to know about every detail of the product being used by them including the side effects. It violates the consumer’s right to safety from the utilisation of products. Companies claiming instant lightening of the skin, rapid weight loss etc can cause long lasting problems to the health of the consumer. Another instance in which the brand Patanjali promoted products on its website aimed at improving the sexual performance of men and women. Such advertisements are strictly prohibited under the drugs and magic remedies act. In the case of K.C. Abraham v. The State of Kerala Peethaambaran Kunnathoor, Chennai[14] the court held that the promotion of the ayurvedic drug ‘Musli Power Xtra’ is in violation of section 7 of the drugs and remedies act. The efficiency of the product was questioned, and the company had to pay a penalty of Rs. 50,000.

The government has turned a blind eye to the manipulative tactics. Ultimately, it is the consumers who become the victim of such scams. Disregard to allopathy by AYUSH companies is a crisis that needs urgent attention of the authorities. According to WHO, spreading fake information is the major cause of hesitancy in taking vaccines and medicines provided by the government. Due to the overload in misleading advertisements people have formed a lot of misconceptions about the healthcare industry. It has become difficult for the government to convince people to take government-provided medicines. As it is said, ayurveda is the science of life. It is a way of living rather than a science that seeks to cure ailments. Certain diseases that have high risk require immediate attention and relief. That’s when allopathy tides in. Making bold statements like allopathy is the reason behind COVID-19 undermines people’s trust in medical science especially in tough times makes people lose hope in the system of medicine. The DMRA Amendment Bill dated 3rd February, 2020 has sought to increase the penalty, addition of more diseases and establishing an Ayurvedic, Siddha and Unani Drugs Advisory Board. All the current enactments only aim at curbing the advertisements rather than focusing on increasing consumer awareness.[15]

CONCLUSION

Given the widespread misuse of advertisement especially in the healthcare industry posing threats to the public at large, the government needs to come to the rescue of the citizens. Stringent actions need to be taken to set precedent for all such companies to cease from making false claims. Heavy penalties must be imposed on industries making extravagant claims. Policies need to be formulated and steps have to be undertaken to supervise advertisements by government authorities. There must be a government supervised and controlled platform accessible by the public wherein information regarding healthcare must be published to combat the problem of false claims made by big companies. Information must be provided in regional languages to ensure easy access and readability by all the sections of the society. Common health related myths must be busted in the same platform. Education also plays a vital role in this regard. Consumers must be made aware of prevalent health diseases and steps to be taken to prevent them. Healthline numbers must be provided in such a platform as well as location of nearby hospitals and the facilities provided therein. Online medical counselling as well as guidance must be provided by the government helping people in remote areas right from admission of the patient in the hospital to finances in case of medical emergencies. If the implementation is done diligently, then it will make a significant impact in the healthcare industry. The DMRA act is outdated calling for the need of new codified legislation.

REFERENCES

https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8297168/

https://www.who.int/europe/news/item/01-09-2022-infodemics-and-misinformation-negatively-affect-people-s-health-behaviours–new-who-review-finds

https://www.livelaw.in/pdf_upload/248322022133848538order21-nov-2023-506018.pdf

https://www.livelaw.in/top-stories/baba-ramdev-should-not-abuse-medicine-systems-ayurveda-allopathy-supreme-court-ima-plea-207231

https://www.livelaw.in/top-stories/supreme-court-patanjali-baba-ramdev-misleading-advertisements-indian-medical-association-242694

https://www.livelaw.in/top-stories/supreme-court-issues-contempt-notice-to-patanjali-ayurved-its-md-for-misleading-ads-on-medicinal-cures-250636

https://www.livelaw.in/top-stories/entire-country-taken-for-a-ride-you-shut-eyes-for-2-years-supreme-court-pulls-up-union-for-inaction-on-patanjali-ayurved-ads-250686

[1] Drugs and Magic Remedies (Objectionable Advertisement) Act, 1954, No. 21, Acts of Parliament, 1973(India).

[2] Drugs and Magic Remedies (Objectionable Advertisement) Act, § 2(c), 1954, No. 21, Acts of Parliament, 1973(India).

[3] Hamdard Dawakhana v. Union of India, 1959 SCC Online SC 38

[4] Constitution of India, art. 19(1)(f) & Constitution of India, art. 19(1)(g)

[5] Cable Television Network Regulation Act, 1955

[6] Cable Television Network Rules, 1994, GSR 729(E)

[7] Misleading Drug Advertisements: Busting the Myth and Protecting Consumers, 1.4 JCLJ (2021) 592

[8] Consumer Protection Act, 2019, S. 2(1)

[9] Consumer Protection Act, 2019, S. 9

[10] Consumer Protection Act, 2019, s. 2(28)

[11] Consumer Protection Act, 2019, S. 2(47)

[12] Consumer Protection Act, 2019, S. 10

[13] Uniform Code of Pharmaceuticals Marketing Practices 2014

[14] KC Abraham v. State of Kerala Peethaambaran Kunnathoor, Chennai WP (C) No. 11410 of 2011

[15] Direct Marketing and Advertisement of Certain Medical Devices to Patients in India – A Dilemma, 6.1 RSRR (2020) 158

Article written by- Rashi Hora

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DISPLAY OF NAME AND NATURE OF BUSINESS DOES NOT AMOUNT TO ADVERTISEMENT: SUPREME COURT

In precedence of the case Bharti Airtel Vs. State of Madhya Pradesh the High Court of Madhya Pradesh declared the demand notices sent to the appellant for the payment of advertisement tax to be valid. This was challenged in the Hon’ble Supreme Court.

The appellant is a dealer of Hyundai passenger cars in Indore. He had a sign board outside the premise of the showroom displaying the business name and address of the place. Respondent number 2 issued a notice demanding Rs. 2,03,850 as advertisement tax under Section 189-A of the Municipal Act, 1965. The appellant contested that a sign board merely displaying the name of the business does not amount to “advertisement”. The objective behind putting up the sign board was only to inform the public about the business and what it deals in. The appellant filed a writ petition under article 226 of the Constitution of India but the High Court referred to the verdict given in the Bharti Airtel case and dismissed the petition. The appellant received notices to pay advertisement tax not only for the shop located within the jurisdiction of the Indore municipal corporation but also for the one located outside its jurisdiction.

The counsel for appellant contends that the facts in the Bharati Airtel case are not analogous to this case. This case deals with the issue whether a third party or a tax agency collect advertisement tax. Whereas in the present case, the issue is whether displaying the name and nature of the business amounts to advertisement. The counsel for appellant further contends that if tax is levied for the same it would be violative of article 19(1)(A) and 19(1)(G) of the Constitution.

The Indore municipal authority under sec 132(6)(1) of the municipal corporation act contends that it has rightfully demanded the advertisement tax from the appellant. The particular section states that the corporation can levy any tax contingent upon any special or general order taken by the state government, namely, ‘a tax on advertisement other than advertisements published in newspapers’ (Sub-clause (l)).

The court referred to the case of ICICI Bank and Another Vs. Municipal Corporation of Greater Bombay (2005) 6 SCC 404 which held that ‘advertisement’ must have a commercial aspect to it. It must attract the attention of the people in order to persuade them to engage in the activity of buying. Advertisement aims at providing information and is of a good or service. However, only displaying the name of the company does not amount to advertising unless it is a trade mark or trade name.

The hon’ble supreme court states that the sign board entailed the name of the business which itself is indicative of the kind of product the appellant deals with. Solely displaying the name of the enterprise or the business would not amount to advertising unless the enterprise in question in some way persuades the customer to purchase. Display boards and name boards are essential for the purposes of identification. If they are counted as advertisements, it would be impossible for customers to even identify such businesses. The context and circumstances must be taken into account.

In this case, the legislative provisions do not permit the municipal corporation to levy tax on sign boards. The objective of sign board is just to convey information about the kind of products dealt with by a business enterprise. The name of the business enterprise of the appellant shows what car he deals in and nothing more. It does not cause the public to purchase the products.

The Hon’ble court further stated that both the parties had objections to the demands made and they hastily rushed to the High Court under its extra ordinary jurisdiction. However, the court does not support the dismissal of the petition by the High Court. The outcome of the case remains unchanged and the first respondent was asked to review the objections filed by the appellant within eight weeks. In case, they decide against the appellant they cannot enforce the demands for another eight weeks. The appellants have the liberty to challenge any decision given by the Commissioner.

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Judgement Analysis written by- Rashi Hora.

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