Can a celebrity be held liable for endorsing a misleading advertisement?

Question

A celebrity endorsed a weight-loss product that turned out to be fraudulent. Can the endorser also be penalised, not just the company? What I am unsure about is the procedure — where the application goes, what it costs, and how long celebrity endorser liability matters usually take. A plain explanation of the steps, in order, would help more than a general answer.

MyVakeel Legal Desk · Accepted Answer

The law that applies to celebrity endorser liability here is Consumer Protection Act 2019, Section 21 and Consumer Protection Act 2019, Section 89. The detail below matters, because Consumer Protection Act 2019, Section 21 draws the line differently depending on what your documents show.

Section 21(3) empowers the CCPA to impose a penalty of up to Rs 10 lakh on an endorser for a misleading advertisement, rising to Rs 50 lakh for subsequent contraventions.

The endorser can also be prohibited from making any endorsement of that particular product or service for a period of up to one year, extendable to three years for repeated violations.

Section 21(4) provides a due diligence defence — an endorser is not liable if they can show they exercised due diligence to verify the veracity of the claims made in the advertisement.

Section 89 separately criminalises false or misleading advertisements prejudicial to consumer interest with imprisonment up to two years and fine, escalating for repeat offences.

Guidelines issued by the CCPA require endorsers to disclose material connections and material information about products they promote, especially on social media.

What to do next: 1) Preserve the advertisement or social media post along with the endorser's name and claims made; 2) File a complaint with the CCPA specifically naming both the manufacturer and the endorser; 3) Highlight the absence of any due diligence exercised by the endorser before making the claims; 4) Pursue a separate compensation claim before the Consumer Commission if you suffered financial loss.

If you are unsure whether your facts fall inside Consumer Protection Act 2019, Section 21, that is worth checking with an advocate before you commit to a route, because switching later costs time. You can post the details on the MyVakeel forum for a practising advocate to review, or book a paid consultation with a Bar Council verified lawyer in consumer law.