<div>The government’s move to enact a new bill amending the Consumer Protection Act, 1986, is welcome. The law needs to be updated in view of a number of issues having a bearing on the interests of consumers which have come up in the last three decades. There have been discussions and proposals on how the law can be made more relevant and useful for the consumers. Strict penalties have been proposed for unfair trade practices. A parliamentary panel has made a number of recommendations on how to strengthen the law. It has proposed stringent punishment, including jail terms and cancellation of licence, for those found guilty of food adulteration. Proposals have been made for better regulation in the areas of e-commerce and direct marketing. Another proposal is intended to tackle misleading advertisements of products and services. This will also cover celebrity endorsements of products which have become common now.<br /><br />The proposal has been made with the aim of making celebrities accountable for the quality of the brands which they endorse. The committee has proposed a five-year jail term or Rs 50 lakh fine for those who make false claims about a product or a service they endorse. Many such claims have turned out to be wrong and consumers have been deceived. Celebrities like film stars and sports icons are held in high regard. Their association with products and the claims they make for them influence the buying behaviour of consumers. Rational judgment is often suspended. Companies and advertisement firms exploit this and try to transfer the credibility of the celebrities to their products and services. But the consumers have found themselves cheated on many occasions. Film stars like Shah Rukh Khan and Hrithik Roshan and cricketers like Sachin Tendulkar and M S Dhoni have found themselves in such situations. Dhoni had to resign as the brand ambassador of a realty firm after residents made complaints about breach of promises by the promoter.<br /><br />The question is often asked whether a celebrity should be aware of all the facts about a product which is endorsed. But there is an element of social responsibility involved when a celebrity makes a claim about a product. Endorsement fee should not be the only consideration when a product is promoted by a public person whose word is taken as true by many people. Even if a legal provision is made, it may be difficult to punish a celebrity for a wrong or misleading endorsement. But the existence of the provision will make them careful about the claims that they make. <br /><br /></div>
<div>The government’s move to enact a new bill amending the Consumer Protection Act, 1986, is welcome. The law needs to be updated in view of a number of issues having a bearing on the interests of consumers which have come up in the last three decades. There have been discussions and proposals on how the law can be made more relevant and useful for the consumers. Strict penalties have been proposed for unfair trade practices. A parliamentary panel has made a number of recommendations on how to strengthen the law. It has proposed stringent punishment, including jail terms and cancellation of licence, for those found guilty of food adulteration. Proposals have been made for better regulation in the areas of e-commerce and direct marketing. Another proposal is intended to tackle misleading advertisements of products and services. This will also cover celebrity endorsements of products which have become common now.<br /><br />The proposal has been made with the aim of making celebrities accountable for the quality of the brands which they endorse. The committee has proposed a five-year jail term or Rs 50 lakh fine for those who make false claims about a product or a service they endorse. Many such claims have turned out to be wrong and consumers have been deceived. Celebrities like film stars and sports icons are held in high regard. Their association with products and the claims they make for them influence the buying behaviour of consumers. Rational judgment is often suspended. Companies and advertisement firms exploit this and try to transfer the credibility of the celebrities to their products and services. But the consumers have found themselves cheated on many occasions. Film stars like Shah Rukh Khan and Hrithik Roshan and cricketers like Sachin Tendulkar and M S Dhoni have found themselves in such situations. Dhoni had to resign as the brand ambassador of a realty firm after residents made complaints about breach of promises by the promoter.<br /><br />The question is often asked whether a celebrity should be aware of all the facts about a product which is endorsed. But there is an element of social responsibility involved when a celebrity makes a claim about a product. Endorsement fee should not be the only consideration when a product is promoted by a public person whose word is taken as true by many people. Even if a legal provision is made, it may be difficult to punish a celebrity for a wrong or misleading endorsement. But the existence of the provision will make them careful about the claims that they make. <br /><br /></div>
