Celebrities set to get relief from stringent provisions of Consumer Protection Act

Celebrities endorsing products are set to get relief from the stringent provisions of the Consumer Protection Act as the Centre has proposed to hold manufacturers and service providers liable for misleading claims in advertisements.

Celebrities will be held responsible for endorsing faulty products or services only if they go beyond the agreement they have signed with the manufacturer and the script handed over to them for endorsement.

The Consumer Affairs Ministry is finalising the rules for implementation of the Consumer Protection Act which was passed by Parliament in August last year. The rules are expected to be notified in April, after completion of consultations with various stakeholders.

Representatives from the domestic industry – FICCI, CII, Assocham, e-commerce companies Snapdeal, Amazon, GoIbibo, Make My Trip, PepperFry among others met Consumer Affairs Minister Ramvilas Paswan to for sharing their views on the Consumer Protection Act.

Industry representatives voiced concern over certain stringent provisions in the Act that also attract jail term. However, Paswan made it clear to the industry representatives that jail term would depend on the severity of the violation.

On e-commerce companies, Paswan said the onus on faulty delivery of goods would lie on the company. “There have been instances of a person ordering a mobile phone and receiving something else,” he said.

Paswan said the industry representatives also sought better coordination with the government in addressing consumer complaints.

The minister said the industry welcomed the provision for mediation as an option for resolution of consumer complaints. He said to prevent prolonged litigation, the Act also has provisions for restriction in the number of appeals.

The industry representatives also agreed to strengthen their self-regulatory mechanism and provide all possible help to the Department of Consumer Affairs, Paswan said.

According to the Act, celebrities endorsing misleading advertisements can be fined up to Rs 10 lakh.