Rules Tighten! Tough For Celebrities

In a welcome move, the Union Government has decided to tighten the rules and norms for endorsers. Celebrities including movie and sports persons who are endorsing various brands now have to follow the new norms and rules.

As part of this, the endorsers are now required to make material connection disclosures and undertake due diligence while endorsing in advertisements. The new guidelines were released by the Consumer Affairs Ministry recently. As per this, the endorsements must reflect the honest opinions, belief or experience of the endorsers.

The endorsers have to make material connection disclosures. Failing to follow these rules will attract a penalty under the Consumer Protection Act (CPA). Violation of the guidelines will attract a penalty of ₹10 lakh for the first offence and ₹50 lakh for the subsequent offence, under the CPA.

“If there exists a connection between the endorser and the trader, manufacturer or advertiser of the endorsed product that might materially affect the value or credibility of the endorsement and the connection is not reasonably expected by the audience, such connection shall be fully disclosed in making the endorsement,” the guidelines said.

The new guidelines came into effect from June 10, 2022 and these are intended to prevent misleading advertisements. Social influencers are on the rise. Social media campaigns also have to duly follow these guidelines.