Government Tightens Norms For Endorsers Including Celebrities, Rs 10 Lakh Penalty For Guidelines Violation

The government has tightened norms for endorsers, including celebrities and sports persons, as they are now required to make material connection disclosure and due diligence while endorsing in advertisements.

Based on the new guidelines released by the Consumer Affairs Ministry issued on Friday, endorsements must reflect endorsers' honest opinions, beliefs or experiences.

The endorsers must make material connection disclosures; failing to do so will attract a penalty under the Consumer Protection Act (CPA).

Material disclosures mean any relationship that materially affects the weight or credibility of any endorsement that a reasonable consumer would not expect.

"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.

Violation of these guidelines will attract a penalty of Rs 10 lakh for the first offence and Rs 50 lakh for a subsequent offence under the Consumer Protection Act.

The new guidelines 'Prevention of misleading advertisements and necessary due diligence for endorsement of advertisements', which came into effect from June 10, 2022, have been issued to prevent misleading advertisements.

It provides various criteria for an advertisement to be considered valid and non-misleading and gives clarity on bait advertisements, surrogate advertisements and free claims advertisements.