Though several other countries have had well-structured regulations governing endorser liability for a very long time, the newly introduced framework in India is stringent and balanced at the same time. However, there are several lessons to be learned from the working of the regulatory systems of these countries. The experience of working on the law in other countries has shown that the best method to ensure compliance of the law is a combination of awareness and sensitization coupled with self-regulation as well as having robust statutory provisions to act as the deterrent factor. For this purpose, the industry body and the statutory have to work in tandem. In the US, the FTC works closely with the advertising fraternity in order to keep violations in check. The UK is the best example of solid co-ordination where the statutory authority for consumer protection i.e., CMA and the advertising industry body viz., ASA play a perfectly synchronized role for making advertisements complaint with CPRs along with CAP. Though CMA acts as on complaints and issues pertaining to the consumer industry as a whole, the ASA provides its support on complaints pertaining to advertisements. Instead of acting as a body restricting itself to compliance of the law, the CMA in conjunction with ASA also provides guidance and advisories to companies and advertisers. This mutual co-ordination is also found in Singapore with the government and ASAS working together on awareness as well as compliance. The CCPA ought to be constituted in a manner that works closely with the advertising industry and ASCI as is being done by its counterparts in other countries. Its role should be dynamic and industry sensitive. This will ensure that CCPA does not become yet another statutory body in the Indian regulatory web. Given the change in the scenario in India with respect to the law relating misleading advertisements especially those carrying celebrity endorsers, the ASCI should look to playing a bigger role in creating awareness in the advertising industry and aspiring to seek compliance of its Guidelines. It is a matter of great regret that lately brands and entities have been found to be involved in fraud on consumers. This includes several real estate companies. Such companies have engaged the who’s who of the celebrities to push their projects and products. This scenario has created a lot of buzz surrounding the topic of liability of celebrity endorsers engaged by such companies in order to woo consumers. Endorsers who charge astronomical amounts for advertising contracts have to stand up and take responsibility for their actions of associating themselves with companies who indulge in less than honourable deeds and practices. They can no longer be permitted to raise their hands and claim ignorance or indemnification. The need of the hour is for the newly enacted law and its system to send the message that – if you meddle with dirt, you will end up with hands dirty.
1. According to the passage, what is the solution to the problem mentioned in the passage?
a. The advertising fraternity should be self-aware and if it promises to do so, no statutory recognition, whatsoever, would be needed to smoothly function endorsements.
b. Whether the advertising fraternity is self-aware or not, no longer matters as having strict and strong statutory recognition is required to make the endorsements function accordingly.
c. Since the parliament of India, unlike legislative bodies of other countries, is not coming up with any law, it is the Supreme Court of India which will have to lay out guidelines for the same.
d. At this juncture, only either of the sides working i.e. the advertisement fraternity and the legislative, for regulating endorsements will not make any difference. It is required from both of them to work in consonance.
2. Which of the following can be inferred from the passage?
a. The advertising industry just has to be set free without any government intervention and they will make themselves free of any dirty practice.
b. ASCI is a self – regulating body with set guidelines.
c. ASCI works for getting the cases of advertising companies misleading customers recognized and penalized.
d. ASCI works for getting the cases of advertising companies misleading customers only recognized and not penalized.
3. Which according to the passage should not be the priority for ASCI?
a. To strictly follow the government regulated statutory body CCPA guidelines.
b. To create awareness in the advertising industry.
c. To follow its own guidelines.
d. To comply with the statutory bodies of its counterparts.
4. Which of the following, according to the author, would be true for endorsement regulations in India?
a. As the current situation of the endorsement regulations clearly show, there is no statutory regulation for the same.
b. The statutory power regarding regulations of endorsements is present in the country and is greatly successful.
c. The statutory power regarding regulations of endorsements in India is an emerging aspect and needs more recognition.
d. The statutory power regarding regulations of endorsements should have an appropriate set of rules to make sure that they work effectively in the country.
5. Which of the following, according to the author, is true about India?
a. All the high courts present in the country have their separate set of rules governing endorsement regulations in the country.
b. ASA play a perfectly synchronized role for making advertisements complaint with CPRs along with CAP.
c. The CCPA ought to be constituted in a manner that works closely with the advertising industry and ASCI.
d. The reason why endorsement regulations is not a success in India is that it is not being recognised by any statute.
1. Ans:(d) At this juncture, only either of the sides working i.e. the advertisement fraternity and the legislative, for regulating endorsements will not make any difference. It is required from both of them to work in consonance. The idea of the author in the passage clearly states, in the first paragraph itself that it is the mutual understanding between these two elements which will ensure smooth functioning.
2. Ans:(b) ASCI is a self - regulating body with set guidelines. All other options can nowhere be traced down from the passage. Whereas, option (a) is suggested as the author wants the statutory body to work with advertising industries and ASCI. Hence the option can be inferred.
3. Ans:(d) To comply with the statutory bodies of its counterparts. All the other options are true according to the passage, but (d) is not at all suggested by the author at any point.
4. Ans:(c) The statutory power regarding regulations of endorsements in India is an emerging aspect and needs more recognition. The author clearly is suggesting that the current regulations are not enough yet but they have to grow as a fraternity along with the advertisement industry.
5. Ans:(c) The CCPA ought to be constituted in a manner that works closely with the advertising industry and ASCI. Options (a) and (d) are wrong as they are nowhere mentioned in the passage. Option (b) is true but it is in the context of UK and not India. Hence the correct answer is (c).
