Sections 88 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Chapter VII on offences and penalties begins with two sections that bite on business. Section 88 punishes failure to comply with a direction of the Central Authority under sections 20 and 21 with imprisonment up to six months, or fine up to twenty lakh rupees, or both. Section 89 punishes a manufacturer or service provider who causes a false or misleading advertisement prejudicial to consumers: imprisonment up to two years and fine up to ten lakh rupees, and for each later offence up to five years and fifty lakh rupees. If you advertise goods or services, our legal dispute resolution team can help you respond to a notice or a complaint.
Section 88: whoever fails to comply with a direction of the Central Authority under sections 20 and 21 is punished with imprisonment up to six months, or fine up to Rs 20 lakh, or both. Section 89: a manufacturer or service provider who causes a false or misleading advertisement prejudicial to consumers is punished with imprisonment up to two years and fine up to Rs 10 lakh; for every subsequent offence, imprisonment up to five years and fine up to Rs 50 lakh. Cognizance needs a complaint by the Central Authority or an authorised officer (s.92).
Penalties at a glance
| Section | Offender | Imprisonment | Fine | Joined by |
|---|---|---|---|---|
| 88 | Whoever fails to comply with a Central Authority direction under ss.20 and 21 | Up to six months | Up to Rs 20 lakh | "or with both" |
| 89 (first offence) | Manufacturer or service provider causing a false or misleading advertisement prejudicial to consumers | Up to two years | Up to Rs 10 lakh | "and" |
| 89 (each subsequent offence) | Same | Up to five years | Up to Rs 50 lakh | "and" |
The table shows an important difference in wording. Section 88 says imprisonment "or with fine ... or with both", so a court may impose either or both. Section 89 says imprisonment "and with fine", so on its wording both go together. The text of section 89 does not say a court may impose only one of them.
Section 88: not following a direction of the Central Authority
"Whoever, fails to comply with any direction of the Central Authority under sections 20 and 21, shall be punished with imprisonment for a term which may extend to six months or with fine which may extend to twenty lakh rupees, or with both."
- The directions covered. Only directions under sections 20 and 21. Section 20 deals with recall of goods and refund orders; section 21 deals with false or misleading advertisements. The section does not apply to other directions of the Central Authority.
- Maximums only. The imprisonment "may extend to" six months and the fine "may extend to" twenty lakh rupees. Unlike section 72, section 88 prints no minimum.
- "Whoever". The section is not limited to manufacturers or service providers. Anyone who is directed and fails to comply is covered.
- Not the same as section 21's penalty. Section 21 provides a separate penalty collected under that section; section 97 refers to it. Section 88 is the criminal penalty for ignoring the direction.
Example. The Central Authority directs a company under section 21 to discontinue a misleading advertisement and to issue a corrective one. The company ignores the direction. Section 88 allows imprisonment up to six months, or fine up to Rs 20 lakh, or both.
Section 89: false or misleading advertisement
"Any manufacturer or service provider who causes a false or misleading advertisement to be made which is prejudicial to the interest of consumers shall be punished with imprisonment for a term which may extend to two years and with fine which may extend to ten lakh rupees; and for every subsequent offence, be punished with imprisonment for a term which may extend to five years and with fine which may extend to fifty lakh rupees."
Take the parts in turn:
| Element | Text |
|---|---|
| Who | Any manufacturer or service provider |
| What act | Causes a false or misleading advertisement to be made |
| Condition | Prejudicial to the interest of consumers |
| First offence | Imprisonment up to two years and fine up to Rs 10 lakh |
| Every subsequent offence | Imprisonment up to five years and fine up to Rs 50 lakh |
- "Manufacturer or service provider". The section names these two. An advertiser who is neither, and an endorser, are not named in section 89. This article does not say what applies to them.
- "Causes ... to be made". The offence is causing the advertisement to be made, so it can reach the business that commissions the advertisement and not only the person who prints or broadcasts it.
- "False or misleading". "Misleading advertisement" is defined in section 2(28): an advertisement that falsely describes a product or service, or gives a false assurance to or is likely to mislead consumers as to nature, substance, quantity or quality, or conveys a representation that would be an unfair trade practice, or deliberately conceals important information. See our article on the definitions.
- "Prejudicial to the interest of consumers". The offence needs this condition in addition to falsity or misleading content. The Act does not say how it is shown.
- Both penalties together. The first limb reads "imprisonment ... and with fine" and the second the same. As printed, the text does not give a choice of one penalty alone.
- "Subsequent offence". The text does not say whether it means a later offence after conviction or after the first was committed, or the interval allowed. It is silent.
Who can start the case
Under section 92, no court takes cognizance of an offence under sections 88 and 89 except on a complaint filed by the Central Authority or an officer authorised by it. See sections 92–93 on cognizance and vexatious search. So a consumer cannot launch a prosecution under section 88 or 89 directly; a consumer's route is a complaint to the Central Authority or a Commission. Section 96 lets the offences be compounded on payment of an amount as prescribed, with the leave of the court once a complaint is filed.
What the text leaves out
- It does not say whether a company's officers are answerable; the text speaks of "whoever" and "any manufacturer or service provider".
- It sets no minimum penalty in either section.
- It does not say how a court chooses within the range, or whether imprisonment may be suspended.
- The CCPA's guidelines on misleading advertisements are rules and guidelines made under the Act and are not in the source text; this article does not describe them.
For a wider look at penalties across the Act, see our existing post on penalties under the Consumer Protection Act 2019.
Need help with an advertisement or a CCPA direction?
If you have received a direction from the Central Authority, or are about to launch an advertisement with claims you cannot support, it is better to review before the offence arises. Our team can examine the advertisement and the direction. Begin with a legal dispute resolution consultation and bring the advertisement, the substantiation for each claim and any notice you received.
Key takeaways
- Section 88: not complying with a CCPA direction under ss.20 and 21 attracts up to six months, or up to Rs 20 lakh, or both.
- Section 89: a false or misleading advertisement attracts up to two years and up to Rs 10 lakh; each subsequent offence up to five years and up to Rs 50 lakh.
- Section 88 uses "or"; section 89 uses "and".
- Only the Central Authority or its authorised officer can complain to a court (s.92).
- Both offences are compoundable under section 96.
Read next
- Section 90: punishment for products containing adulterant
- Sections 92–93: cognizance of offences and vexatious search
- Section 96: compounding of offences
- Misleading Advertisements Under CPA 2019
Disclaimer: Based on the Consumer Protection Act, 2019 as enacted, as consulted on 1 October 2026. Monetary limits, fees and procedure are set or revised by rules and regulations made under the Act and should be checked in their current form. This article is general information, not legal advice; check the official text before acting.