The Covid-19 spread has changed the consumer behaviour leading to maximum use of digital marketing which reduced the physical barriers and maintained social distancing.
However, the increase of digital marketing has led to increase in scams and frauds with fraudulent websites, fake mobile apps mushrooming up. India’s ad fraud jumped to 45%-55% in Covid-19. The cybercrime has increased by 86% and personal data is the most attractive target as millions of consumers have fallen victim to malwares out of which more than 90% of them being financial frauds.
In the health sector, the AYUSH Ministry ordered the Patanjali Ayurveda to stop advertising of the Coronil vaccine as there is no scientific proof behind the medicine.
The Federal Trade Commission of the USA charged Eric Anthony Nepute and his company Quickwork LLC with violating the Consumer Protection Act and the Federal Trade Commission Act, by deceptively marketing products containing vitamin D and Zinc as scientifically proven to treat or prevent Covid-19.
According to the complaint, the defendants marketed the vitamin D and Zinc products under the brand name “Wellness Warrior,” and claimed that they were as, or more, effective than vaccines that are currently available.
The Ministry of Consumer Affairs, Food and Public Distribution in the US issued an order adding surgical and N95 masks and hand sanitizers to the list of essential commodities under the Essential Commodities Act 1955 (ECA).
The Central Government and some State Governments have fixed ceiling rates for different Covid-19 tests, isolation beds and others.
The recently set up Central Consumer Protection Authority (CCPA) has sent notices to two big companies - one selling healthcare products and another a paint manufacturer - for making claims that their products neutralise the coronavirus. This move is being seen as a signal to all manufacturers, advertisers and sellers that their claims are under the scanner and they need to back them with scientific evidence.
The Consumer Protection (E-Commerce) Rules 2020 has been enacted to regulate the E-Commerce Entities/Digital Marketing, including new legislation CPA 2019.
The Central Government and State Governments have come up with various legislations, legal policies and schemes so as to protect the consumers.
