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With reference to the new norms for celebrity endorsements, consider the following statements:
1. According to new guidelines released by the Consumer Affairs Ministry, endorsements must reflect the honest opinions, belief or experience of the endorsers.
2. The endorsers have to make material connection disclosures and failing to do so will attract penalty under the Consumer Protection Act (CPA).
Which of the statements given above is/are correct?
  • a)
    1 only
  • b)
    2 only
  • c)
    Both 1 and 2
  • d)
    Neither 1 nor 2
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
With reference to the new norms for celebrity endorsements, consider t...
The Government of India has tightened norms for endorsers, including celebrities and sportspersons, as they are now required to make material connection disclosures and undertake due diligence while doing advertisements.
  • According to new guidelines released by the Consumer Affairs Ministry, endorsements must reflect the honest opinions, belief or experience of the endorsers.
  • The endorsers have to make material connection disclosures and failing to do so will attract penalty under the Consumer Protection Act (CPA).
  • Material disclosures mean any relationship that materially affects the weight or credibility of any endorsement which a reasonable consumer would not expect.
  • Violation of these guidelines will attract a penalty of ₹10 lakh for the first offence and ₹50 lakh for the subsequent offence, under the CPA.
  • The new guidelines “Prevention of misleading advertisements and necessary due diligence for endorsement of advertisements”, which came into effect in June 2022, have been issued to prevent misleading advertisements.
  • Hence both statements are correct.
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With reference to the new norms for celebrity endorsements, consider the following statements:1. According to new guidelines released by the Consumer Affairs Ministry, endorsements must reflect the honest opinions, belief or experience of the endorsers.2. The endorsers have to make material connection disclosures and failing to do so will attract penalty under the Consumer Protection Act (CPA).Which of the statements given above is/are correct?a)1 onlyb)2 onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'C'. Can you explain this answer?
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