Indian Celebs Under Microscope in New Advertising Regs

Indian celebrities earn a big part of their income by endorsing consumer brands. However in case a product is substandard or non-performing, the celebrity is rarely held responsible. Now things may change if the recommendations of a parliamentary committee are accepted by the government.

The Parliamentary Standing Committee for the Ministry of Consumer Affairs has given far reaching recommendations, advising that if the brand ambassador of a particular product is found to be giving false or misleading information through his advertisements, he or she may be found liable and could face a fine of up to 5 million Indian rupees, 5 years imprisonment or both. The committee is set to present its report in the coming session of parliament commencing on April 25. 

The committee finalized these recommendations while deliberating on the Consumer Protection Bill which is pending in the lower house of parliament. Incidentally, India's Consumer Affairs Minister Ram Vilas Paswan supported the idea of holding brand ambassadors responsible for any misleading information.

"Celebrities and brand ambassadors should be careful in choosing the products for endorsements. They should be held accountable for any such act," the minister said.

The Consumer Affairs Ministry, led by Paswan, is likely to insert these recommendations in the Bill.

As per the Indian Constitution, the bill has to be passed by both houses of Parliament for it to become a law. The bill is likely to be taken up for discussion in the coming parliament session.

Celebrity endorsements came under fire after Indian Cricket team captain Mahendra Singh Dhoni was criticized for endorsing a corrupt real estate company. The complaints from the home buyers went viral on social media and consequently Dhoni had to resign as a brand ambassador for the company.

In fact, the world of advertisement, especially TV advertisement has rapidly expanded in India recently. In just 2015, there was a 22 percent increase in TV advertisements. The total income generated through advertisements is estimated to be 186 billion Indian rupees($2.7 billion USD) and it is increasing every year.