NEW DELHI: Your favourite actors and sportspersons promoting brands may soon come under the net of law if the products they endorse are not found to be complying with quality standards. The Centre has proposed a two-year imprisonment for first time offenders and five year imprisonment for second-time offenders for brand ambassadors if the products they endorse are found sub-standard.
The move comes close on the heels of cricketer M S Dhoni facing the wrath of residents of an Amrapali housing project in NCR, which he had promoted. Dhoni was trolled on social networking sites by residents complaining that the complex lacked amenities, as promised by the cricketer in advertisements.
Bollywood actor Madhuri Dixit, who promoted Maggi, drew flak after the product was taken off shelves for sometime.
The provision for punishment for brand ambassadors would be brought in as a provision in The Consumer Protection Bill, 2015, which will be presented before the Union Cabinet for clearance.
After widespread consultation with stakeholders, the Bill was referred to a Group of Ministers, headed by Finance Minister Arun Jaitley, which is understood to have given in-principle approval to the proposal of making brand ambassadors accountable for the products they endorse.
The Bill, which was introduced in the Lok Sabha in August last year had been referred to a Parliamentary Standing Committee, which had suggested the provision for punishment for brand ambassadors.
Subsequently, the Food and Consumer Affairs Ministry had considered the suggestions and referred the matter to a GoM, led by Jaitley. Other members of the GoM are Transport Minister Nitin Gadkari, Health Minister J.P. Nadda, Food and Consumer Affairs Minister Ram Vilas Paswan and Agriculture Minister Radha Mohan Singh.
The Bill replaces the Consumer Protection Act, 1986, aiming to widen the ambit and modernise the law on consumer protection due to changes in markets. It also gives a definition of a consumer as a person, who buys a good or hires a service for a consideration.
The Bill specifies the rights of consumers which includes the right to be protected against marketing of goods and services which are hazardous to life and property, be informed of the quality, quantity, potency, purity, standard and price of goods or services, be assured of access to a variety of goods or services at competitive prices and seek redressal against unfair or restrictive trade practices.