Should endorsers be held responsible for claims in advertising?

In News: The Central Consumer Protection Authority (CCPA) notified guidelines for ‘Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022’. The guidelines, brought in with immediate effect, are applicable to all forms of advertisements.

• While the Consumer Protection Act of 2019 does have a provision on misleading advertisements, the CCPA can impose a penalty of up to ₹10 lakh on manufacturers, advertisers and endorsers for misleading advertisements and a penalty of up to ₹50 lakh for subsequent contraventions.
• It can also prohibit the endorser of a misleading advertisement from making any endorsement for up to one year; for subsequent contravention, prohibition can extend up to three years.

The Guidelines

An advertisement shall be considered to be valid and not misleading, if–

• It contains truthful and honest representation
• It does not mislead consumers by exaggerating the accuracy, scientific validity or practical usefulness or capability or performance or service of the goods or product
• It does not present rights conferred on consumers by any law as a distinctive feature of advertiser’s offer
• It does not suggest that the claims made in such advertisement are universally accepted if there is a significant division of informed or scientific opinion pertaining to such claims
• It does not mislead about the nature or extent of the risk to consumers’ personal security, or that of their family if they fail to purchase the advertised goods, product or service
• It ensures that the claims that have not been independently substantiated but are based merely on the content of a publication do not mislead consumers
• It complies with the provisions contained in any other sector specific law and the rules and regulations made thereunder.

Source: The Hindu