Should brand ambassadors be held responsible for claims in advertising?

On June 9, 2022, the Central Consumer Protection Authority (CCPA) notified guidelines for ‘Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022’. The guidelines, brought in with immediate effect, are applicable to all forms of advertisements. While the Consumer Protection Act of 2019 does have a provision on misleading advertisements, the CCPA can impose a penalty of up to ₹10 lakh on manufacturers, advertisers and endorsers for misleading advertisements and a penalty of up to ₹50 lakh for subsequent contraventions. It can also prohibit the endorser of a misleading advertisement from making any endorsement for up to one year; for subsequent contravention, prohibition can extend up to three years.  Here we discuss the need for the new guidelines and how they overlap with the ‘Code for Self-Regulation in Advertising’, which was adopted by the Advertising Standards Council of India (ASCI). Guests: Akashneel Dasgupta, chief creative officer at Network Advertising; Anushree Rauta, an advocate and partner heading the Media and Entertainment at the ANM Global Host: Sonam Saigal