Celebrities to be Booked for Misleading Advertisements under new Consumer Protection Laws: An Analysis

Existing Situation

In the era of cut-throat sector opposition, promotion is the backbone action to shoot up the profits. Movie star endorsement has grow to be a part of potent internet marketing tactic. These stars also get a system to endorse them selves as unique and generate a massive total of cash.  The stars have grow to be best arrows to hit the target sector. The client is considered as the king of the sector who is in most of the scenarios gets influenced by stars. The sector patterns are enormously influenced by the celebrity endorsements as client falls into the entice of this internet marketing tactic. Manufactures, assistance vendors, promotion businesses shell out excessively to lure shoppers. Owing to this advertising tactic, the client finishes up shelling out more for the merchandise.

The Modi federal government prepared Client Defense Bill, 2018 to guard the legal rights of the customers. The Bill was launched in Lok Sabha by the Minister of Client Affairs, Food and General public Distribution, Mr. Ram Vilas Paswan on January 5, 2018. The Bill replaces the Client Defense Act, 1986. The legal rights of the client have been defined below Area 2(9) of the Bill. It is the suitable of a client to be shielded towards those people merchandise or solutions which are harmful to existence and residence. It is also a suitable to look for redressal towards unfair trade practices defined below segment 2(47) of the Bill.

Central Client Defense Authority protects the customers

The Bill has established Central Client Defense Authority [CCPA] below Area 10 of the Bill to deal with the bogus and deceptive ads. The CCPA has the electrical power to issue directions and penalties towards bogus or deceptive ads below Area 21 of Bill. The CCPA can discontinue or modify the bogus or deceptive advertisement which is prejudicial to the fascination of the client or is violating the legal rights of the client. The Authority can impose the penalty towards the maker or the endorser which may possibly prolong to 10 lakh rupees for violating the consumer’s suitable. It is the discretion of the Authority to impose the penalty which may possibly prolong to fifty lakh rupees for subsequent t contravention by a maker or endorser. The Authority can also prohibit the endorser of a bogus or deceptive advertisement from building the endorsement of any merchandise or assistance for a period which may possibly prolong to one particular yr. In the scenario of subsequent contravention by this kind of endorser, the Authority may possibly prohibit this kind of endorser from building the endorsement in respect of any merchandise or assistance for a period which may possibly prolong to 3 many years. The Authority has the electrical power to punish the publisher of this kind of deceptive advertisement by the imposition of the penalty which may possibly prolong to 10 lakh rupees.

The Bill has presented a solution to the endorser to escape the penalty. The Bill imposes the obligation of thanks diligence on the endorser.  The endorser has to establish that he has exercised thanks diligence to confirm the veracity of the claims built in the advertisement with regards to the merchandise or assistance remaining endorsed by him. No particular person shall be liable to this kind of penalty if he proves that he had printed or organized for the publication of this kind of advertisement in the ordinary system of his business enterprise, presented that no this kind of defence shall be readily available to this kind of particular person if he had previous know-how of the purchase handed by the Central Authority for withdrawal or modification of this kind of advertisement. The Authority shall regard the subsequent while identifying the penalty below Area 21:

  • the population and the region impacted or influenced by this kind of offence
  • the frequency and period of this kind of offence
  • the vulnerability of the course of persons probably to be adversely influenced by this kind of offence and
  • the gross profits from the profits effected by advantage of this kind of offence.

The Bill punishes any maker or assistance service provider for bogus or deceptive advertisement. They can be punished with imprisonment for a phrase which may possibly prolong to 2 many years and with fine which may possibly prolong to 10 lakh rupees and for each subsequent offence, be punished with imprisonment for a phrase which may possibly prolong to 5 many years and with fine which may possibly prolong to 50 lakh rupees.

Conclusion and Suggestion

Introduction of this bill is a commendable stage taken for the safety of legal rights of the customers. It has been evident while analyzing this Bill, that the provisions for regulating the ads have been drafted in the parlance of the Code for Self Regulation in Advertising built by the Advertising Criteria Council of India. Even in the serious-estate sector, the endorsements are regulated below Area 12 of the True Estate (Regulation and Advancement) Act, 2016. There are nonetheless loopholes in the Bill with regards to the liability of the stars. The stars just have to pay the penalty in scenario of the default which is just like shopping for peanuts for them. The quantum of the penalty have to be improved and there have to be a provision of imprisonment for them much too so that the obligation of thanks diligence is carried out more cautiously.


  • http://www.prsindia.org/uploads/media/Client%20Defense,%202018/Client%20Defense%20Bill,%202018.pdf
  • http://www.prsindia.org/uploads/media/Client%20Defense,%202018/Bill%20Summary%20-%20Client%20Defense%20Bill,%202018.pdf
  • http://www.indiacode.nic.in/functions-in-pdf/2016/201616.pdf
  • https://ascionline.org/visuals/pdf/code_ebook.pdf
Apoorva Sinha

Apoorva Sinha

Apoorva Sinha is currently pursuing law from College of Law, University of Petroleum and Energy Research, Dehradun. She likes to analysis and write on socio-legal issues. She has interned at different law corporations, Higher Court and District Court. She has participated at different nationwide amount competitions. She has also attended worldwide conferences and printed papers. She has also executed an International Essay Composing opposition in her faculty in collaboration with Surana and Surana.

Apoorva Sinha

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