India is the second-fastest-growing advertising market in Asia. By the end of 2019, advertising spend in India is likely to rise by 11.4 per cent to Rs 69,700 crore in 2019, thanks largely to cricket and elections.
Celebrity Endorsements Now Under Close Watch
Celebrity endorsers of brands beware! If you feature in an advertising campaign found to be misleading, you will be slapped with a fine or even end up in prison.
According to the Consumer Protection Bill, 2019, which was passed by the Lok Sabha on July 30, such a fine could go up to Rs10 lakh.
Well-known personalities need to be cautious before endorsing and promoting ad campaigns. They can no longer afford to make cavalier choices. The first thing that brand endorsers would need to do is check what constitutes a “misleading" claim. Promotions that falsely describe a product or service, or give false guarantees, will be deemed misleading.
Under the new Bill, a Central Consumer Protection Authority (CCPA) will be set up to promote, protect and enforce the rights of consumers. It will regulate matters related to violation of consumer rights, unfair trade practices, and misleading advertisements.
The authority has also the power to impose a penalty on a manufacturer or an endorser of up to Rs 10 lakh and imprisonment for up to two years.
For endorsers, the penalty includes a one-year ban on any endorsement. For a repeat offence, the fine will be up to Rs 50 lakh, a jail term up to five years and a three-year-ban on endorsements.
In addition, the Bill has also recommended setting up Consumer Disputes Redressal Commissions (CDRCs) at the district, state, and national levels. This would enable consumers to approach these commissions and file a complaint with respect to defective goods or services, overcharging, unfair trade practices and sale of goods or services which may be hazardous.
India is the second-fastest-growing advertising market in Asia. By the end of 2019, advertising spend in India is likely to rise by 11.4 per cent to Rs 69,700 crore in 2019, thanks largely to cricket and elections.
Well-known personalities need to be cautious before endorsing and promoting ad campaigns. They can no longer afford to make cavalier choices. The first thing that brand endorsers would need to do is check what constitutes a “misleading" claim. Promotions that falsely describe a product or service, or give false guarantees, will be deemed misleading.
Under the new Bill, a Central Consumer Protection Authority (CCPA) will be set up to promote, protect and enforce the rights of consumers. It will regulate matters related to violation of consumer rights, unfair trade practices, and misleading advertisements.
The authority has also the power to impose a penalty on a manufacturer or an endorser of up to Rs 10 lakh and imprisonment for up to two years.
For endorsers, the penalty includes a one-year ban on any endorsement. For a repeat offence, the fine will be up to Rs 50 lakh, a jail term up to five years and a three-year-ban on endorsements.
India is the second-fastest-growing advertising market in Asia. By the end of 2019, advertising spend in India is likely to rise by 11.4 per cent to Rs 69,700 crore in 2019, thanks largely to cricket and elections.
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