No Jail, Heavy Fines Will Be Imposed On Celebrities Endorsing Products In Misleading Ads

The Logical Indian

November 11th, 2016 / 7:20 PM

Celebrities Endorsing Products In Misleading Ads

Source: Indian Express | Image Courtesy: Indian Express | Quora

A Group of Ministers (GoM) has decided that celebrities who are found endorsing products with unrealistic and dodgy claims will not be imprisoned, but instead will face of up to Rs 50 lakh fine and a ban on appearing in advertisements for up to three years.

The GoM on Wednesday decided to take a look at the issue and agreed to obliterate the provision of imprisonment of celebrities, as such measures are not practiced in any country.

The GoM is headed by Finance Minister Arun Jaitley and includes Transport Minister Nitin Gadkari, Communications & IT Minister Ravi Shankar Prasad, Health Minister J P Nadda, Commerce Minister Nirmala Sitharaman and Power Minister Piyush Goyal and Food and Consumer Affairs Minister Ram Vilas Paswan. Paswan’s ministry piloted the Consumer Protection Bill, 2015.

The proposal has been cleared by Union Cabinet and the Bill is expected to pass in the winter session.

The Consumer Protection Bill, 2015, which seeks to replace the Consumer Protection Act, 1986, by inserting tough measures for the protection of consumer rights and providing strict punishment to violators, was presented in Parliament in 2015.

Earlier, measures were suggested to a Standing Committee to make celebrities accountable for the brands they endorse. The panel had recommended that for first-time offence, the offender celebrities may be penalised with either a fine of Rs 10 lakh or imprisonment up to two years or both. For second-time offences, it had suggested a fine of Rs 50 lakh and imprisonment of five years.

The GoM has now decided that instead of jailing the endorsers, they should be fined Rs 10 lakh and would face a ban of one year for the first offence, and fined Rs 50 lakh and banned for up to three years for the second offence.


Who called for brand ambassadors to be brought under the ambit of this act?
The Confederation Of All India Traders (CAIT) had demanded the inclusion of brand ambassadors under the ambit of the act, as they felt that it is based on who  the brand ambassador is that many consumers make their choice. The issue came to light after the ban on Nestle India Ltd’s Maggi Noodles, which was later lifted.


Contributors

Edited by :

Share your thoughts..

Related Stories

Apple Fined

Australian Court Fines Apple $9 Million For Misleading iPhone And iPad Owners

Fake News

Spreading Hatred In The Name Of Celebrities: Farhan Akhtar, Swara Bhaskar & Nana Patekar Targeted

ASCI Bans 62 Ads Including Coca Cola, Emami, Bharat Petroleum For Misleading Claims

Misleading Ads

ASCI Upholds Complaints Against Misleading Ads Of Amazon, Paytm, Philips And 97 Others

Patanjali Ads

25 Out Of 33 Patanjali Ads Were False & Misleading: ASCI

Patanjali Misleading Ads

Rs 11 Lakh Fine Imposed On Baba Ramdev’s Patanjali Ayurved For Broadcasting Misleading Ads

Latest on The Logical Indian

News

UP: Police Kills Two In An Encounter, Journalists Allegedly “Invited” To Film The Incident

My Social Responsibility

This Mumbai Man Is Bringing Volunteers To Collect Broken Ganesh Idols Left At Sea Beaches After Immersion

News

Is Defence Minister Right About Incapability Of HAL To Produce Rafale Jets?

Awareness

The Ground Realities Of An ‘Ideal Village’ In Bihar’s State Capital

News

Number Of Infant Deaths At Five-Yr Low In India, But Still Remain Highest In The World: UN Report

My Social Responsibility

This Team Reduced 4.2 Tonnes Of Carbon Footprint By Replacing Plastic In School Experiment Kits

x

Stories that deserve attention, delivered to your inbox!

Handpicked, newsworthy stories which deserve the attention of a rational generation.