Endorsement of Harmful Products

Why in News? President Droupadi Murmu urged celebrities to avoid endorsing products potentially harmful to public health. Maharashtra FDA issued notices to actors over advertisements for an elaichi brand linked with tobacco products.

Concern: Celebrity endorsements can influence consumer choices, particularly among young audiences.

Prelims Pointers

• Consumer Protection Act, 2019: Provides the legal framework for action against misleading advertisements and unfair trade practices.
• Central Consumer Protection Authority (CCPA): Established under Section 10 of the Act to protect and enforce consumer rights and address misleading advertisements.
• CCPA Guidelines, 2022:
  • Require due diligence by endorsers.
  • Endorsements must reflect genuine, reasonably current opinions and be based on adequate information or experience.
  • Surrogate advertisements and advertisements for products prohibited by law are restricted.

• Penalties: For misleading advertisements, the CCPA may impose a penalty of up to ₹10 lakh on manufacturers or endorsers, and up to ₹50 lakh for subsequent contraventions. An endorser may also be prohibited from making endorsements for up to one year, or up to three years for subsequent contraventions.

Prelims Practice Question

Q. With reference to misleading advertisements and product endorsements in India, consider the following statements:

1. The Central Consumer Protection Authority was established under the Consumer Protection Act, 2019.
2. Endorsements must reflect the genuine opinion of the endorser and be based on adequate information or experience.
3. The CCPA can impose penalties for misleading advertisements and prohibit endorsers from making endorsements for a specified period.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Answer: (d) 1, 2 and 3

Explanation:

• Statement 1 – Correct: The CCPA was established under Section 10 of the Consumer Protection Act, 2019.
• Statement 2 – Correct: The 2022 guidelines require endorsements to reflect genuine opinions and be based on adequate information or experience.
• Statement 3 – Correct: The CCPA can impose penalties and prohibit endorsers from making endorsements for specified periods.