New Consumer Protection Act Empowers Authority to Penalize False Ads; Endorsers Face Bans and Steep Fines for Repeat Offenses

The Central Consumer Protection Authority, under the Consumer Protection Act, 2019, has the power to address false or misleading advertisements. If an advertisement is found to harm consumer interests or violate consumer rights, the Authority can order its discontinuation or modification. Penalties up to ten lakh rupees can be imposed on manufacturers or endorsers, increasing to fifty lakh rupees for repeat offenses. Endorsers can be prohibited from endorsing products for up to one year, extendable to three years for subsequent violations. Penalties consider factors like the affected population, offense frequency, and revenue from sales. Due diligence can exempt endorsers from penalties.