Onus on brand ambassadors to prove product quality
12 Apr 2016
A parliamentary panel has suggested drastic steps, including imprisonment and fines of up to Rs50 lakh on celebrity brand ambassadors endorsing products that make unrealistic claims.
If the government accepts the report of the parliamentary committee on changes in the Consumer Protection Bill, celebrities supporting such unfounded claims on product quality could face a jail term of five years and a fine of Rs50 lakh in case the claims prove to be untrue.
Consumers tend to blindly believe advertisements promoted by eminent personalities or celebrities honoured with Padma awards who are brand ambassadors of several products, the report noted, adding that existing laws are not deterrent enough to discourage manufacturers from using celebrities in misleading advertisements.
The committee, therefore, recommended that stringent provisions be made in the bill to tackle misleading advertisements, as well as to fix liability on endorsers and celebrities.
''The committee recommended that for a first-time offence, the offender may be penalised with either a fine of Rs10 lakh and imprisonment up to two years or both; for the second offence, a fine of Rs50 lakh and imprisonment for five years; and subsequent offences, the penalties may be increased proportionally, based on the value of sales volumes of such products or services,'' the report said.
The report also sought clarity in the definitions relating to the word 'endorsement' in order to avoid any ambiguity in cases of misleading, false and objectionable advertisements.
The report also seems to have taken stock of the recent controversy over celebrity endorsments of Maggie noodles, after the product quality took a beating after laboratory tests allegedly proved the presence of excessive lead and toxic substances ib tastemakers.
Accordingly, the panel has recommended severe penalties for violation of the Food Safety and Standards Act.
The penalty for first-time violators includes rigorous imprisonment of two years with a fine of Rs10 lakh and suspension of licence for a period of two years, while for the second-time offenders it has recommended a five-year jail term with a fine of Rs50 lakh, besides cancellation of licences.
The Parliamentary Committee on Food, Consumer Affairs and Public Distribution, headed by Telugu Desam Party leader JC Divakar Reddy, is reported to have unanimously adopted the report on Monday.
