5-year jail term or fine up to Rs 50 lakh for brand ambassadors coming?
Zee Media Bureau
New Delhi: A brand ambassador may be held culpable if the company he or she endorses makes misleading claims on the product.
In order to tackle false claims made by companies on their products, the Standing Committee on Consumer Protection Bill 2015 has recommended stringent action to be taken against the brand ambassador of such companies.
The committee has recommended that for first time offence, the brand ambassador may be penalized with either of a fine of Rs 10 lakhs and imprisonment up to two years or both. For second time offence, a fine of Rs 50 lakhs and imprisonment for five years and for subsequent offences, the penalties may be increased proportionately based on the value of sales volumes of such products or services.
The recommendations as part of the Consumer Protection Bill 2015 are yet to be passed by the Parliament.