Endorsement case: Kerala HC sets aside proceedings against Mohanlal
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Kochi: In a case relating to a dispute between borrowers and a finance company, the Kerala High Court recently set aside consumer proceedings against actor Mohanlal, who was the brand ambassador of the company. The high court held that a brand ambassador cannot be held liable for a company’s alleged unfair trade practice, The Indian Express reported.
The court ruled that the said ambassador could be held liable only if there is a direct link between the individual and the consumer’s transaction.
The case was related to a dispute from complaints against Manappuram Finance, as the petitioners allege that the company charged them a higher rate than what was advertised.
As per the dispute, two borrowers in Thiruvananthapuram pledged their gold ornaments first with the Catholic Syrian Bank at an interest rate of 15%, but after a bank manager allegedly promised them a lower interest rate, Manappuram Finance took over the loans.
According to the borrowers, they were attracted to the finance company after an advertisement featuring Mohanlal, who was the company’s ambassador then.
Later, when the borrowers decided to close the loan and retrieve the gold, the finance company demanded an interest rate that was higher than they advertised.
The borrowers moved the District Consumer Disputes Redressal Commission, alleging a deficiency of service and unfair trade practices. They sought a refund of the excess and compensation of Rs 25 lakh.
Mohanlal, along with the company and its manager, was named as the opposite party. However, the actor argued before the body that he had no role in the loan transaction, no interaction with the borrowers, and no say in the interest rates charged.