Celebrities Endorsing False Ads Can Be Fined Upto Rs 10 Lakh, Face Jail Term

New Delhi: Celebrities, manufacturers and service providers may be fined up to Rs 10 lakh and even face a jail term of two years for false or misleading advertisement, according to the terms of Consumer Protection Bill 2019 passed by Lok Sabha on Tuesday, replacing the earlier Consumer Protection Act 1986.

Endorsing any type of advertisement which misleads the customers on the nature, substance, quantity or quality of a product or service or deliberately conceals important information is an offence. While strict action has been proposed against the advertiser for false advertisements, no action has been proposed in the bill against the media that publicises the advertisement.

The bill also provides for a liability action owing to harm caused to the consumers on account of faulty items or deficient services. A Central Consumer Protection Authority (CCPA) has also been proposed under the bill apart from the consumer courts at the district level so as to promote, protect and enforce the consumer rights.

The Consumer Protection Bill, which provides for a mechanism to ease customer complaints with respect to defects in goods and deficiency in services, also seeks to bring the e-commerce sector under its purview. The bill aims to establish an authority for timely settlement of disputes related to the consumers.

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