What penalties await companies and celebrities for misleading ads?

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Penalties for Misleading Advertisement in India

Companies and celebrities found engaging in misleading advertisements for alcohol and tobacco products in India face significant penalties, including substantial fines and endorsement bans. These measures are part of new sweeping rules designed to close loopholes in existing advertising regulations.
Fines for Companies

Companies found to be running surrogate or misleading advertisements are liable for fines of up to 5 million rupees, which is approximately RM270,000. This penalty applies to manufacturers and endorsers of products deemed to be in violation of the new advertising standards.
Endorsement Bans for Promoters

Promoters and individuals, including celebrities, who endorse products through misleading advertisements risk facing endorsement bans. These bans can range from a minimum of one year up to a maximum of three years, effectively barring them from participating in future promotional activities.
Prohibition of Surrogate Advertising

The new regulations explicitly prohibit "surrogate advertisement," which refers to advertising strategies that circumvent direct bans by promoting less desirable items or brand extensions that share characteristics with restricted products. This also extends to sponsorships of events that are used as a conduit for promoting such goods.
Enforcement of Consumer Law

The penalties for misleading advertisements are to be enforced under India's consumer law. This framework allows for accountability not only for the companies producing the goods but also for the individuals, such as popular film stars, who lend their image to promote these products.

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What penalties await companies and celebrities for misleading ads?

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