Indian Consumer Don't Believe In Advertisements, Says Report; Here's Why

The survey shows that 73 per cent of consumers have low trust in ads. Additionally, 84 per cent of respondents reported encountering misleading or false advertisements endorsed by celebrities

The data indicates that 52 per cent of respondents have encountered several misleading advertisements, while 32 per cent have encountered a few

Source : Freepik

Misleading advertisements and false claims for endorsements are significantly driving away Indian consumers’ trust in advertisements, according to a report by LocalCircles. The report studied and analysed over 37,000 responses from consumers located in 312 different districts of India. Most consumers surveyed exhibited a high degree of scepticism and low levels of trust toward advertisements.

The survey revealed that 73 per cent of consumers have low trust in advertisements. Additionally, 84 per cent of respondents reported encountering misleading or false advertisements endorsed by celebrities within the past year.

The survey includes consumer trust in various media forms, including print, TV, radio, and digital platforms. Out of 12,810 responses, nearly three-quarters—73 per cent—indicated a significant lack of trust in advertisements. In response to questions about celebrity-endorsed advertisements, 12,341 participants revealed that 84 per cent had seen at least a few such ads in the last 12 months that they later found to be misleading or false.

The data indicates that 52 per cent of respondents have encountered several misleading advertisements, while 32 per cent have encountered a few. Furthermore, 73 per cent of those surveyed believe that the advertising industry should be regulated by an authoritative body such as the Central Consumer Protection Authority (CCPA).

Currently, misleading advertisements are monitored by the Advertising Standards Council of India (ASCI), with additional complaints filed with Broadcast Seva, the Press Council of India, and the National Consumer Helpline, according to LocalCircles. The platform argues that given the powerful nature of advertising across various media—radio, print, television, and digital—and the significant number of consumers who have had negative experiences, it is crucial for the government to intervene and ensure accountability for deceptive advertising practices.

The report also highlighted that 73 per cent of consumers are advocating for a change in regulatory oversight. Additionally, 84 per cent of respondents have reported encountering several misleading celebrity-endorsed ads, underscoring the ineffectiveness of the current regulators and contributing to the low levels of trust in advertisements.

According to consumers, a more responsible and accountable consumer protection regulator is needed to enforce advertising guidelines as the government considers implementing a unified system for handling complaints about misleading ads. 

Recently, the Supreme Court made it compulsory for companies to submit a self-declaration form before advertising any product, effective from June 18. This form confirms that the advertisements do not contain misleading claims. Influencers and celebrities are also expected to endorse products responsibly.