According to reports the Ministry of Consumer Affairs decided to take up the step following rising number of complaints from consumers.
"We are seriously considering a regulatory agency to tackle misleading advertisements. We are still at a discussion stage," a senior Consumer Affairs Ministry official.
The PMO office in Sep had directed to setup a regulatory mechanism to keep a check on such advertisements. The ministry is also in discussions with experts under the Consumer Protection Act to know if the misleading ads can be understood as 'unethical trade practise'.
"The ministry is actively thinking whether to amend the Consumer Protection Act for expanding its scope or bring in new legislation to set up an executive arm to monitor such advertisements," said the official.
The content of the advertisements are being regulated by private bodies like the News Broadcasting Association and the Advertising Standards Council of India, he added.
Government is also keeping in mind that people do not feel cheated through the ads.
"At present, the Food Processing, Health and Information and Broadcasting Ministries are separately dealing with misleading advertisements under the various acts," said the official.
Atleast 30-40 countries have self regulation and in some countries, there is trade commission or executive body that monitors misleading advertisement.