Question

A company producing weight loss pills hires a celebrity to promote the product. This advertisement claims rapid weight loss without mentioning the need for a balanced diet and regular physical activity. Also, it does not disclose the potential side effects or risks associated with the pill.

Specify the provisions of the Consumer Protection Act that would protect consumers’ interests if the claims provided in the above case are found to be false.

Answer 1

In the above case of misleading advertisement, the following provisions of the Consumer Protection Act become applicable through the CCPA:

• Prohibit the endorser of a misleading advertisement from endorsing that particular product or service for a period of up to one year. For every subsequent offense, the period of prohibition may extend to three years. However, there are certain exceptions when an endorser will not be held liable for such a penalty.
• Impose a penalty on a manufacturer of up to ₹ 10 lakh and imprisonment for up to two years for a false or misleading advertisement. For an endorser penalty under section 21, there is a fine and prohibition from endorsement.
• In case of a subsequent offense, the fine may extend upto ₹ 50 lakh and imprisonment of up to five years.