By Devika Singh

Marketers and advertising agencies will have to rein in the superlatives, with the Consumer Protection Bill, 2019 being passed by the Rajya Sabha. The Bill, among other directives, aims to tighten the noose on marketers, advertising agencies as well as brand endorsers in the country — tall, unsubstantiated and misleading claims such as ‘India’s No. 1 brand’ and ‘Purest water’ could attract penalty and even jail term.

The implementation of the bill will affect brand endorsements, as celebrities will now be held accountable for such ads, and could attract a ban of up to three years. According to ESP Properties, celebrity-led endorsements in the country increased from 650 in 2007 to 1,660 in 2017, growing at a CAGR of 10%. However, experts believe, the bill coming into effect could be a real spanner in the works for the industry — celebrities could get costlier for brands to rope in, which could snowball into a reduction in the number of ads featuring brand ambassadors.

Pricey proposition

Samit Sinha, founder and managing partner, Alchemist Brand Consulting, says the lesser established brands/smaller brands will be impacted the most. “They will have to work a lot harder to convince celebrities that their products are completely bonafide,” he says. “On the other hand, as celebrities could become pickier about what they endorse, their endorsement fee may skyrocket.”

Although few and far between, there have been some instances of celebrities ending their contracts with brands on moral grounds. For example, Virat Kohli and Amitabh Bachchan have turned down a Pepsi endorsement, while a few actresses have refused to endorse fairness cream brands.

Celebrity endorsement contracts, no doubt, will now have to be drawn up with a lot of caution. Some even foresee the involvement of lawyers in the creative process, as the communication will have to be devised keeping the legal aspects in mind.

Celebrities may refuse to back claims made by the brands, thereby forcing marketers to relook at their expectations from endorsers. “It is one thing to say, ‘I like a particular brand of water filter’ and another to say ‘this brand of water filter kills all kinds of germs’,” says Naresh Gupta, managing partner and CSO, Bang in the Middle. “This is where the creative element will be critical.”

Due diligence

The bill has a provision for endorsers, under which they cannot be held liable for false and misleading ads if they are found to have done due diligence before signing the deal. This clause, however, has led to even more confusion. “What do you mean by due diligence? Are we supposed to go to the factory and check the ingredients of the product and try out the service?” asks Vijay Subramaniam, CEO and co-founder of celebrity management firm Kwan Entertainment. “A guideline will be a bit more helpful,” he adds.

The Advertising Standards Council of India (ASCI), the self-regulatory organisation of the advertising industry in India, has been routinely flagging misleading ads, and has set guidelines on the dos and don’ts, which could be a moral compass of sorts.

“It may not be possible for celebrities to understand the finer details related to product quality and claims. However, they can take help from various authorities to resolve any apprehension,” says D Shivakumar, chairman, ASCI. “For example, they can consider the FSSAI certificate as a pre-qualification for certain products, or seek assistance from us.”