'Bring brand ambassadors endorsing products under Consumer Protection Act'

'Bring brand ambassadors endorsing products under Consumer Protection Act'

'Bring brand ambassadors endorsing products under Consumer Protection Act'
Ahead of the Parliament’s Monsoon session, premier traders body CAIT on Saturday demanded bringing brand ambassadors under the ambit of Consumer Protection Act.

Confederation of All India Traders (CAIT) in a communication to Food and Consumer Affairs Minister Ram Vilas Paswan urged him to table a bill in Parliament bringing brand ambassadors endorsing products under the ambit of Consumer Protection Act since they influence choice of consumers and promote sale of products.

In support of its demand, CAIT President Praveen Khandelwal cited recommendations of Parliamentary Standing Committee calling for bringing brand ambassadors under the Act and even fix their liabilities.

“Brand ambassadors are integral part of sales campaign of the product by virtue of taking considerations against the endorsement of the product and that too under a contract. In fact, they act as service providers in entire sales mechanism and therefore, they become subject to Consumer Protection Act,” Khandelwal said in the communication.

The Parliament Standing Committee on Food & Consumer Affairs had recently said that several eminent personalities and celebrities were often engaged as brand ambassadors for promoting various products and were deployed to make advertisements which consumers tend to believe blindly.

But when unfair trade practices are exposed, the celebrities are quick to disassociate themselves with the products/companies they were representing hitherto. The existing laws are not deterrent enough to discourage such practices. The Committee has recommended to make stringent laws and fixing of responsibilities of the endorsers/celebrities.

It even recommended a fine of Rs 10 lakh to Rs 50 lakh and imprisonment for the offence.

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