Brand ambassadors must be made liable for misleading ads: CAIT

Traders’ body CAIT on Sunday reiterated its demand for brand ambassadors to be brought under the ambit of the Consumer Protection Act to make them liable for misleading advertisements.

In a communication sent to Consumer Affairs Minister Ram Vilas Paswan, CAIT demanded that specific guidelines be formulated, fixing the liability on brand ambassadors.

“Since it has vital bearing on consumers there is a need of reasonable prudence and responsible conduct of the Brand Ambassador to avoid misleading and deceptive endorsements.

“Therefore, framing of policy and Guidelines for Brand Ambassadors is the need of the hour in larger interest of consumers,” Confederation of All India Traders (CAIT) said.

It expressed hope that the Consumer Protection Act will be amended at earliest to make sales campaigners liable for misleading or excessive advertisements.

Celebrities who endorse brands will be held accountable for misleading claims under the new Consumer Protection Act, Consumer Affairs Minister Ram Vilas Paswan had said in June.

In a joint statement, CAIT National President B C Bhartia and Secretary General Praveen Khandelwal said that Brand Ambassadors are integral part of sales campaign of the product by virtue of taking considerations against the endorsement of the product which aims to push sales of products and that too generally under a contract.

“They act as service providers in entire sales mechanism and therefore they become subject to Consumer Protection Act and also the money taken as consideration by the Brand Ambassadors is generally accounted in the cost of product.

Brand Ambassadors are not doing any charity but providing commercial services and as such they can not escape from the liability of good claims they make in an endorsement”.

Therefore, in order to protect Consumers, there is a need to bring Brand Ambassadors under the ambit of Consumer Protection Act.