CAPE TOWN - The government of India recently introduced a bill in the Indian Parliament to establish a Central Consumer Protection Authority (CCPA) to regulate matters related to consumers’ rights, including false and misleading advertising.
If passed, the CCPA would determine whether an advertisement is false or misdealing, then it may require that the advertisement be modified or discontinued.
According to Global Advertising Lawyers Alliance (GALA) statement, the CCPA may also impose penalties on both the manufacturer and any endorsers. "It may also prohibit the endorser from acting as an endorser of any product or service for a period of up to three years."
Sharad Vadehra, Partner of Kan & Krishme in New Delhi said, "If passed, this new legislation will significantly increase the ability of the government to effectively address false advertising in India. The penalties for endorsers who make misleading claims should also help ensure that celebrities think twice before endorsing products".
Jeffrey Greenbaum, the GALA chairman & partner of Frankfurt Kurnit in New York, cautioned that all around the world, endorsers may be held liable for participating in false advertising.