Misleading Ads: Supreme Court Stays Ministry of Ayush Notification Omission of Rule 170

The Supreme Court on Tuesday put a hold on a Ministry of Ayush notification that had removed Rule 170 from the Drugs and Cosmetics Rules, 1945. This rule previously prohibited misleading advertisements for Ayurvedic, Siddha, and Unani drugs.

A bench of Justices Hima Kohli and Sandeep Mehta criticized the Ministry of Ayush’s recent notification, stating it contravened the Supreme Court's May 7, 2024 order. The apex court had previously mandated that, in order to curb misleading advertisements, advertisers must submit a self-declaration similar to the requirements under the Cable Television Networks Rules, 1994, before any advertisement can be issued.

“Instead of withdrawing the letter dated August 29, 2023, for reasons best known to the ministry, the notification dated July 1 to omit Rule 170 of the Drugs and Cosmetics Rules, 1945, has been issued which runs contrary to directions issued by this court. “Till further orders, effect of the notification dated omitting shall stand stayed,” the bench said.

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Additional Solicitor General K.M. Nataraj, representing the Centre, stated that he will submit an affidavit to clarify the situation. The Centre had previously defended its August 2023 letter to states and Union territories, which instructed authorities not to take action against entities violating Rule 170 of the Drugs and Cosmetics Rules.

“It is respectfully submitted that as the process of final gazette notification will take further time, in order to avoid confusion among the various State/UT SLAs (state licensing authorities) and to prevent avoidable litigations, Ministry of Ayush vide letter dated August 29, 2023 directed all state/UTs licensing authorities not to take any action under Rule 170 of the Drugs and Cosmetics Rules, 1945 as the final notification is under process,” the Centre had said in its affidavit.