Warning Alert!
The new Consumer Protection Bill, 2019 passed by the Rajya Sabha proposes stiff penalties for manufacturers and celebrities endorsing a false or misleading advertisement.
The Bill tabled by Union Food and Consumer Affairs Minister Ram Vilas Paswan, was already approved by the Lok Sabha earlier and will now replace the Consumer Protection Act, 1986.
Under the Bill, a Central Consumer Protection Authority (CCPA) will be set up to protect, promote and enforce consumer rights with an investigation wing headed by a Director General to inquire into violations of consumer rights and for imposing penalties. The authority will also have the power to initiate class action, and enforcing refund and return of products.
The CCPA can impose a fine of up to Rs 10 lakh on celebrity endorsers or manufacturers for a false or misleading advertisement. The authority can also order imprisonment of up to two years for false advertising. In case of a repeat offence, the authority can impose a penalty of up to Rs 50 lakh and a jail term of up to five years. Endorsers can be barred from promoting advertisements for up to a year, extending up to three years for repeat offenders. Only in cases where the endorser can prove that they have done due diligence to verify claims made in the ads, will they be exempted from punishment.
Finally we can now all look forward to some non controversial celebrity advertisements!
