Legal opinion to be considered as due diligence for brand endorsements

NEW DELHI: The Central Consumer Protection Authority has issued draft guidelines for the prevention of false or misleading advertisements and the due diligence to be carried out for endorsements.

These guidelines will be called the Central Consumer Protection Authority (Prevention of Misleading Advertisements and Necessary Due Diligence for Endorsement of Advertisements) Guidelines, 2020.

These guidelines cover all advertising/marketing communications regardless of form, format or medium. They are applicable to the manufacturer/service provider whose products/services are subjects of the advertising/marketing communications, as well as to advertisement agency and endorser (wherever applicable) of the product/service. The guidelines said that an endorsement is required to take legal opinion or opinion from an advertising self-regulatory organisation which would be considered as "due diligence".

Every endorser endorsing a product or service shall take due care to ensure that all descriptions, claims and comparisons that they endorse are capable of being objectively ascertained and are capable of substantiation.

Every endorser endorsing a product or service shall take due care to ensure that their endorsement does not convey any express or implied representations that would be false, misleading or deceptive if made by the trader or manufacturer or advertiser of the relevant product or service.

"Any endorser who obtains advertising advice from an advertising self-regulatory organisation or a legal opinion from an independent legal practitioner regarding the honesty of statements in their endorsement and its compliance with these guidelines and the Act may be considered to have carried out due diligence for the purposes of his liability under the Act," the guidelines said.

Also, disclosure of material connection has to be made. "Where there exists a connection between the endorser and the trader, manufacturer or advertiser of the endorsed product that might materially affect the weight or credibility of the endorsement and the connection is not reasonably expected by the audience, such connection shall be fully disclosed in making the endorsement," the guidelines said. (IANS)

Also Watch: Honouring Retired Teachers at their Homes on Teachers Day