Wednesday, 27 April 2016

Panel suggests fine or jail for celebs in misleading ads


consumer protection bill 2015

In its report on the Consumer Protection Bill 2015, tabled in Parliament today, the panel has suggested legal teeth to To make celebrities accountable for misleading advertisements, a Parliamentary Standing Committee recommended stringent provisions, including a jail term of up to five years and a hefty penalty of up to Rs 50 lakh, to protect consumer interest.

  • The committee, headed by Telugu Desam Party Member of Parliament J C Divakar Reddy, said in its report: "The committee strongly feels that misrepresentation of a product, especially of food product, should be taken very seriously, considering the influence of celebrities and high networth individuals and companies. 
  • The existing laws are not deterrent enough to discourage manufacturers or publishers from using such personalities for misleading ads.”
  • The committee recommends that for first time offence, the offender may be penalised with either a fine of Rs 10 lakh or imprisonment up to two years or both.
  •  For second time offence, a fine of Rs 50 lakh and imprisonment of five years.
  •  For subsequent offences, the penalties may be increased proportionately based on the value of sales volumes of such products or services.

Recently, Indian cricket captain M S Dhoni had to resign as brand ambassador of Amrapali after residents of a housing society started a protest against the builder and the cricketer on social media.

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