The Standing committee on Food And Consumers Affairs has tabled a report in Parliament on Consumer Protection Bill. With an aim to crack down on irresponsible endorsements, it has recommended strident provisions in the bill. The Committee plans to tackle misleading advertising and to fix liability of endorsers and celebrities.
As per the recommendations, first time offender will be penalised with either a fine or Rs 10 lakh and imprisonment of two years or both. The fine for second offence will be Rs 50 lakh and imprisonment of 5 years or both. For subsequent offence, penalty should be increased proportionately based on the sales volumes.
With celebrities facing flak over brand endorsements, the Central Consumer Protection Council (CCPC) had earlier said they should be made liable for "misleading advertisements". "The Council's view was that celebrities should be responsible for misleading advertisements," Consumer Affairs Minister Ram Vilas Paswan had said.
Paswan, who is the CCPC chairman, had said the Council was also of the view that there should be guidelines for brand ambassadors.
"Celebrities should think twice before endorsing any product/service. One should use common sense approach while endorsing. If an advertisement says a person can get taller in six months using this particular product. Is it possible? Consumers are getting misled because they tend to listen and believe that the particular product/service endorsed by celebrities must be of good quality," he added.
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