New Delhi: Celebrities endorsing various products in return of exorbitant fees need to act more responsibly and carefully now. A panel of ministers has given its approval for fining celebrities Rs 10 lakh if the products endorsed by them make misleading claims.
Companies coming up with misleading advertisements will be liable to pay a fine of Rs 50 lakh and 5-year jail term, as suggested by the panel.
The recommendation of a jail term for the celebrities who endorse products making unrealistic claims has, however, been denied by the panel. It was recommended by a parliamentary standing committee.
In another massive relief to consumers, manufacturers involved in adulteration will have to pay a fine in proportion to the harm caused by their product. In case a product leads to somebody’s death, a minimum fine of Rs 10 lakh would be imposed and minimum seven years of jail imprisonment which might be changed to life imprisonment.
The panel has provided other recommendations as well. It has also included the publishers and broadcasters under the cap of the fine, recommending a fine of Rs 10 lakh. However, they would be under relief if the advertisement is carried “in ordinary course of their business”.
However, if they continue to broadcast the same after an order by the central authority to withdraw a misleading advertisement, they would be slapped with a heavy fine.