The rapid expansion of the e-commerce sector in India has brought significant benefits to consumers and businesses alike. However, it has also given rise to quite a few challenges, particularly in the domain of misleading or deceptive advertising. This research article examines the effectiveness and challenges of legal landscape governing misleading advertising in India's e-commerce industry. The study begins by outlining the historical context and the evolution of advertising regulations in India, focusing on key legislations and regulatory authorities. It also explores notable case studies to illustrate the impact of misleading advertisements and the regulatory responses that ensued. The author endeavours to identify the strengths and limitations of current regulatory framework. It emphasizes the role of advanced technologies, such as artificial intelligence and such other innovative tools, in detecting and preventing deceptive advertisements. The importance of consumer education and empowerment is also discussed, highlighting initiatives aimed at increasing public awareness and enabling consumers to make informed choices. The research further probes into the challenges of cross-border regulation, the authenticity of online reviews, and data privacy concerns in targeted advertising. It proposes future directions for enhancing the regulatory landscape, including stricter penalties, enhanced transparency requirements, and international cooperation.