Introduction

In order to understand the idea of celebrity endorsement in the bill to protect consumers, it is essential to understand the meaning behind the statement on consumer protection and the way it can be useful. Consumer protection is the safeguarding of the consumer from the ill-conceived business practices and bad intentions of business people to make huge profits.

What’s the importance and necessity of protecting consumers?

Protecting a consumer from abuse is the primary goal of protection for consumers, and the chance of consumers being victimized greatly decreases with the consumer protection bill.

It helps buyers be aware of their rights.

This article seeks to clarify the significance of endorsements from celebrities with regard to the latest consumer protection law. Every day, you are able to see ads from a variety of prominent people who endorse a product at its greatest. But what happens if this product isn’t the same?

Celebrity Endorsement

Advertising is a major part of the process, regardless of whether it’s in India or anywhere in the globe. It assists in the promotion of certain products by highlighting their advantages. However, with the number of advertisements growing impossible to count with every moment, no advert is noticed by the average person to be effective. For this reason, having an actor or actress increases the likelihood. Producers and big companies are willing to spend millions in advertising and engaging celebrities in their endorsements of their products. The question now is what should be the role of stars who promote products that customers subsequently abuse.

Recently, an explanation was requested by Supertech Ltd., the National Consumer Disputes Redressal Commission, despite the long delay in transferring ownership of the homes to buyers with regard to the Noida, ORB Project. Twinkle Khanna, a performer and interior designer who was in charge of promoting the project, was also the person who received a letter from the Commission.

The accusations against the defendant, an investor in real estate, stated the fact that the defendant had breached his contract, resulting from the inability to deliver the housing units on the promised date. The plaintiffs claimed Twinkle Khanna was a participant in the breach of promises because of her involvement in the project. Was a supporter of the project.

This is an instance of a celebrity promoting an item that does not match what was initially claimed. There are numerous instances, and the above is only one of them. It was deemed necessary to address such a scenario, and the provisions relating to endorsements of this kind were enacted in the form of the table Consumer Protection Bill.

The Consumer Protection Bill, 2015

Celebrity endorsements can play a significant influence on the sales of a product but are not only limited to this. This also creates an effect on the psychological state of both the product and celebrities. Famous brands enjoy the luxury of being among the top-selling brands, and producers earn incredible profits. However, since the introduction of the Consumer Protection Bill of 2015, it has made it impossible for celebrities to have the freedom of choice they had previously enjoyed. Criminal complaints filed against Bollywood stars due to endorsements of brands such as Maggi have also prompted the government to draft the new law, which will remove the 1986 law.

The Consumer Protection Bill was recently presented during the Lok Sabha on Jan 5, 2018, the final day of winter’s session. It was discussed in August of 2015. The bill was introduced by the minister of consumer affairs, Ram Vilas Paswan, with the aim of stopping fraud and stifling false claims from service providers as well as manufacturers. The standing committee of the parliamentary parliament on consumer affairs, food, and public distribution suggested that a strict oversight of endorsements by celebrities be included in the legislation.

The current laws make celebrities responsible only when their misleading endorsement or promotion has negatively affected consumers’ interest. The same applies to regulations in the Indian Penal Code, 1860 The Consumer Protection Act, 1986, and the Food Safety and Standards Act in 2006. In the instances of advertising that is misleading.

The committee felt the need for better rules because the current regulations are not enough to stop manufacturers from dealing with false advertising. Also, it was convinced that any false representation of consumables should be treated with a lot of care. Therefore, celebrities fall under strict rules regarding the false endorsers of goods.

The first proposal of penal provisions included the sum of Rs100,000 (US$1,500) in the amount of fine that could be disregarded and as a sentence of imprisonment up to two years for first-time offenders. For repeat offenders, the maximum fine increases to Rs500,000 and a prison term that could be up to five years.

Recent reports in the media have stated that the fine for the proposed penalty amounts to one of one million dollars in the case of a first-time offender and five million in the case of a second offender. There are also provisions for incarceration in the case of hazardous products. The requirements for imprisonment were scuttled for the remainder, and a one-year ban was imposed for celebrities involved in false endorsements for the first time. The ban will last in place for five years from all subsequent instances.