Indian government tightens endorsement norms for celebs

The Consumer Affairs Ministry issued a new set of guidelines for endorsing in advertisements. Celebrities including actors and sports persons are now required to make material connection disclosure and due diligence while endorsing products.

The new rules say the endorsements must reflect endorsers' honest opinions, beliefs, or experiences. It can mean any relationship that materially affects the weight or credibility of any endorsement that a reasonable consumer would not expect.

The Ministry has provided various criteria for an advertisement to be considered valid and non-misleading. The order also gives clarity on bait advertisements, surrogate advertisements, and free claims advertisements.

"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," said the newly issued guidelines.

Failing to do so will attract a penalty under the Consumer Protection Act (CPA). The first offence will attract a penalty of Rs 10 lakh and a subsequent second offence will be fined Rs 50 lakh.

The new guidelines are designed for the prevention of misleading advertisements and necessary due diligence for the endorsement of advertisements. The norms came into effect on 10 June 2022.