ASCI pulls up advertisers for violating celebrity endorsement guidelines
The Advertising Standards Council of India (“ASCI”), has issued notices to certain brands that have violated its guidelines for celebrity endorsements. The ASCI is the industry’s self-regulating agency which, through the Consumer Complaints Committee (“CCC”) ensures that all advertisements are in accordance with the guidelines prescribed by the ASCI.
The main issue here arose when the CCC observed that there were 2 advertisements that violated the celebrity endorsement guidelines (“Endorsement Guidelines”). As per the Endorsement Guidelines, celebrities should do the necessary due diligence on the products they endorse and ensure that none of the claims being made are false, or engage in any activity which encourage any violation of applicable laws.
The first advertisement involved a video commercial for Hero MotorCorp featuring Virat Kohli whereby he is seen driving rashly through traffic. As per the ASCI, it shows complete disregard to traffic rules and safety. The second advertisement was for L’Oreal featuring Alia Bhatt claiming that the shampoo kept her hair fresh non-stop for 72 hours. The ASCI held this to be misleading.
Quick View:
- The legal regime governing the Advertisement industry in India is currently fragmented and is regulated by a number of statutes and rules, such as the Consumer Protection Act, 1986, Cable Television Networks (Regulations) Act, 1995, Cable Television Networks (Amendment) Rules, 2006, Drugs and Cosmetics Act, 1940 and Food Safety and Standards Act, 2006 However, there has been some progress in streamlining the regulation of the advertisement industry. For instance, a Memorandum of Understanding (MoU) has been signed between the ASCI and the Food Safety and Standards Authority (“FSSAI”), whereby the ASCI has been granted the power to monitor and process complaints against advertisements in the Food and Beverage sector (F&B) across various social media.
- The government has taken additional steps such as the proposed Consumer Protection Bill, 2018 (currently pending for approval from the Rajya Sabha), which proposes that endorsers in addition to traders or manufacturers may be required to discontinue or modify false and misleading advertisements. The Bill also provides for fines of up to INR 10 Lakh and bans extending up to 1 year for any violations of its provisions, which may be extended up to INR 50 Lakh and 3 years respectively for subsequent contraventions, unless the endorsers can provide proof for sufficient due diligence on their part.
- With the rapid changes in the legal scenario, it has become imperative that both companies and endorsers carry out due diligence before making any representations to the public. Considering that celebrities are role models and have the ability to influence millions of people, this is a welcome move that will hopefully, make advertising more truthful in the future.
New Delhi to get a new International Arbitration Centre
The Government of India promulgated the New Delhi International Arbitration Centre Ordinance, 2019 thereby making way for the establishment of the New Delhi International Arbitration Centre (“NDIAC”). The new Arbitration Centre will be a statutory body and will replace the 24 year-old International Centre for Alternative Dispute Resolution (a society registered under the Societies Registration Act, 1860).
NDIAC intends to address the growing needs of institutional arbitration in the region by creating an independent and autonomous regime for institutionalized arbitration and seeks to facilitate better management of arbitration.
Among other things, it aims to collaborate with other national and international institutions, promote research and training in arbitration, and maintain panels of accredited arbitrators, conciliators, and mediators at national and international level.
Quick View
- There were several concerns over the inefficiency of the old Arbitration Center in New Delhi as against the ever-increasing arbitration needs of the region, an opinion shared even by the High Powered Committee appointed by the Central Government. Therefore, the move to establish a new Arbitration Centre is a much-needed development in order to ensure the smooth functioning of the alternative dispute mechanism in the capital.
SEZ Ordinance allows Trusts to seek establishment of units in SEZs
The Government of India promulgated the Special Economic Zone (Amendment) Ordinance 2019, which will amend the definition of “Person” under the Special Economic Zones Act, 2005 to include a trust.
The amendment will allow trusts to seek permission to set up units in Special Economic Zone. Additionally, the change also provides the Central Government an option to include more entities in the definition of “Person” under the said Act through subsequent notifications.
The definition of “Person” as amended by the Ordinance now includes trusts in addition to, an individual whether resident in India or outside India, a Hindu undivided family, co-operative society, a company, whether incorporated in India or outside India, a firm, proprietary concern, or an association of persons or body of individuals, whether incorporated or not, local authority and any agency, office or branch owned or controlled by such individual.
Quick View
The Ordinance will further facilitate more investment in SEZs, which already attract significant investment due to the various fiscal and non-fiscal benefits granted upon them by the Government. Moreover, the wiggle room left with the Government to further amend the definition of “Person” in the Act through notifications signifies the willingness of the Government to make SEZs more investment friendly and in tune with subsequent developments in the business landscape.
Disclaimer: This post has been prepared for informational purposes only. The information/or observations contained in this post does not constitute legal advice and should not be acted upon in any specific situation without seeking proper legal advice from a practicing attorney.