Consumer Protection Bill 2018: What is 'misleading' and where can consumers verify claims, ask advertisers
The new Consumer Protection Bill of 2018 proposes severe action including imprisonment against advertisers for false and misleading advertisements
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If the new and improved Consumer Protection Bill of 2018 introduced in the Lok Sabha on the last day of the winter session gets the green signal, the next ad that promises the whitest teeth, fairest skin and highest returns will not only be axed, but also the advertisers may land up in jail.
The bill proposes severe penalties for manufacturers and service providers for false and misleading ads including a fine of up to Rs 50 lakh and jail up to five years.
Celebrities are not liable to a jail term under the bill and will also be protected by indemnity bonds that they sign with the brands. But the bill does put the onus on celebrities to verify the veracity of the claims regarding the product or service before endorsing the same. If they fail to do so, the celebrity may be prohibited from making an endorsement of any product or service for one year, extendable to three years for every subsequent contravention.
This is very similar to the obligation that Advertising Standards Council of India places on celebrities. The ASCI code on celebrity endorsements notes that a “celebrity should do due diligence to ensure that all description, claims and comparisons made in the advertisements they appear in or endorse are capable of being objectively ascertained and capable of substantiation and should not mislead or appear deceptive.”
The advertising fraternity welcomes the proposed Bill that will safeguard the interests of the consumer. "This Bill is also important for the Indian marketplace which has a bad reputation because brands over-promise and under-deliver," said Saurabh Uboweja, founder and CEO Brands of Desire. He added, “Consumers across the board are vulnerable to all kinds of malpractices as a result of which brands and non-brands/manufacturers have a predatory attitude and can get away with pretty much everything. This Bill will act as a tremendous deterrent for a lot of manufacturers when it comes not just to communication but more importantly adulteration of products.”
While that is the general feeling among brands and agencies that create the communication for brands, the nuances of the implementation process need further clarity they say. What is misleading, and who defines ‘misleading’?
Advertising not only informs but also entertains, pointed out Sudip Ghose, Senior Vice President, Sales and Marketing, VIP Industries. He expressed concern about creativity being curbed by this Bill. Ads tend to take some creative liberties and if they do not harm the consumer, they should be permissible. Therefore, Ghose said, “What is misleading to you may not be misleading to me. This is grey area right now; it has to be formalised. For that you need someone (ASCI) to define what we can do and what we cannot do. ASCI now needs to make very clear and explicit guidelines as to what is allowed and what is not.”
The other hurdle with implementation and the concept of misleading is that there is no repository of information where consumers or celebrities can verify claims. “The fundamental requirement for the redressal mechanism to work is greater information,” said Karan Kumar, Chief Marketing Officer, Fab India. He was of the opinion that the Indian marketplace needs an RTI/Wikipedia equivalent which consumers can look up to find information about products and services. “What is the one place where consumers can go and log a question? Many consumers now do that on social media. A lot of brands do respond, but what is the recourse for consumers when brands do not respond? How can the consumer verify that what a brand is claiming is genuine? Even the celebrity cannot verify the same if the consumer cannot do so,” he noted.
However, Kumar added that the new law and the punishment are both welcome. “I do not want the punishment to be watered down. But with a law and punishment like this, my only expectation is that the industry should put up a formal reservoir of knowledge on brands and products where consumers can verify claims. If that platform or network is not in place, none of this will work,” he said.
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E4M Our strategy is to target younger audiences through Sports: Rajiv Dubey, Dabur
The Head of Media at Dabur India spoke exclusively to exchange4media on the World Cup, associating with Indian Idol, the company’s digital spending and much more
With quirky campaigns, memes and moment marketing, timed with the ongoing World Cup and particularly the India-Pakistan matches, Dabur India has got considerable consumer attention for its popular brands – Red Paste, Cool King Hair Oil, Chyawanprash, Dabur Vita and the recently launched Bae Fresh Gel toothpaste.
The 140-year-old company is going big on key sporting events, World Television Premiere (WTP) movies and reality shows. It is now gearing up to become the title sponsor of popular talent show ‘Indian Idol’ on Sony TV for the first time, shared Rajiv Dubey, who leads the media strategy at Dabur.
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Swapan Seth's new book 'COOL' is out
The book is a reflection of the author's 'eclectic taste across categories'
Advertising professional and art collector Swapan Seth has announced the launch of his new book COOL. The book is described as "a ready reckoner to the hip and the happening, of the known and the very unknown."
The book is a reflection of the author's "eclectic taste across categories: from boltholes to exotic hideaways."
COOL has been published by Simon & Schuster India and is available on Amazon.
Seth is an ad veteran with a long and illustrious career in the industry. He became the youngest-ever Creative Director at Clarion at age 24. He was VP at 26 at Trikaya Grey. Two years later, he started his agency Equus.
He writes for publications such as The Economic Times, Hindustan Times and India Today. This is his second book and he has previously published THIS IS ALL I HAVE TO SAY.
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Disney Star signs 9 sponsors for Asia Cup PAK
Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up come on board
e4m Staff Disney Star has signed nine broadcast and digital streaming sponsors for the upcoming Asia Cup.
Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up have come on board for the upcoming tournament.
As reported earlier by exchange4media, Disney Star has sought Rs 26 crore for the co-presenting sponsorship on TV and Rs 30 crore for Disney+ Hotstar.
According to industry sources, the associate sponsorship on Star Sports has been priced at Rs 19.66 crore, whereas for the ‘powered by’ sponsorship on Disney+ Hotstar, the broadcaster is seeking Rs 18 crore.
As per the information available with exchange4media, Disney+ Hotstar has three sponsorship tiers-- co-presenting (Rs 30 crore), powered by (Rs 18 crore) and associate sponsorship (Rs 12 crore). The broadcaster is offering an estimated reach of 120-140 million for co-presenting sponsors, 90-100 million for powered by and 60-70 million for associate sponsorship.
A spot buy for 10 seconds has been priced at Rs 25 lakh for the India vs Pakistan matches, while for the non-India matches, the ad rate for 10 second is Rs 2.3 lakh. The India matches plus the final for ODIs has been priced at Rs 17 lakh per 10 seconds.
Asia Cup is scheduled to be held from 30 August, 2023, to September 17, 2023.
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Sorted 360 wins creative & social media mandate of Reliance Mall
The agency will manage offline and online campaigns for Reliance Mall
Sorted 360, an integrated creative and social media agency, has won the mandate to providing brand solutions for Reliance Malls across India.
“Sorted 360 is set to enhance Reliance Malls' market presence with their unparalleled creative prowess and strategic thinking,” read a press release.
“Sorted 360's commitment to pushing the boundaries of creative communication aligns perfectly with Reliance Malls' ethos. With a pan-India presence spanning across 19 cities and growing, Reliance Malls has consistently captivated customers by offering an array of Reliance brands and third-party fashion & lifestyle brands. The mall has established an unparalleled connection with its patrons through superior quality, a remarkable value proposition, and an unmatched shopping experience,” it read further.
"We are thrilled to welcome Sorted 360 as our trusted partner in advancing our brand presence across the nation," said the Head of Marketing at Relaice Malls. "Their proven expertise in retail, shopping center management, and innovative creative strategies make them the perfect fit for our vision."
"Partnering with Reliance Malls is a testament to our commitment to shaping extraordinary brand experiences," remarked Prerana Anatharam, Co-founder of Sorted 360. "We are excited to leverage our strategic and creative acumen to further elevate Reliance Malls as the epitome of convenience, choice, and excellence."
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KlugKlug onboards Hemang Mehta as Country Manager for Indias
Mehta was most recently Head of Agency Relationships at Network 18 Media & Investments
KlugKlug has appointed Hemang Mehta as its Country Manager for India.
Mehta will play a pivotal role in driving KlugKlug's growth and expansion within the Indian market and be responsible for Sales & GTM Strategy
Prior to that, he has also represented organisations like Exponential (now VDX.tv), India Today Digital and Rediff.com. His expertise spans various domains including digital media sales, mobile marketing, media planning, and buying, social media marketing, and more.
Hemang Mehta expressed his enthusiasm about joining KlugKlug, saying, "I am thrilled to be a part of KlugKlug, a forward-thinking platform that is reshaping the influencer marketing landscape. As much as I look forward to collaborating with the exuberant team at KlugKlug, I am super excited to interact with the brands to deliver powerful data-backed Influencer solutions that will guarantee business outcomes."
Commenting on the appointment, Kalyan Kumar, Co-Founder and CEO of KlugKlug, stated, "We are excited to welcome Hemang Mehta to our team as the Country Manager for India. His extensive experience in digital media sales and marketing will be instrumental in driving our efforts to provide influencer marketing solutions to our clients. We believe Hemang's leadership will be key in scaling our operations and expanding our reach within the Indian market."
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