Published On : Sat, May 30th, 2015

CAIT write to Paswan to bring Brand Ambassadors under the ambit of Consumer Protection Act


In a communication sent to Union Consumer Affairs Minister Ram Vilas Paswan today, the Confederation of All India Traders (CAIT) has demanded that Brand Ambassadors endorsing products should be brought under the ambit of Consumer Protection Act since they influence choice of consumers and promote sale of products. The CAIT has also demanded formulation of specific guidelines for endorsement of products since such endorsements have direct impact on consumers. The CAIT has taken this step following issuance of notice by Food Department to Actress Madhuri Dikshit for making claims in endorsement of Maggie.

In its communication to Paswan, the CAIT has argued that Brand Ambassadors are integral part of sales campaign of the product by virtue of taking considerations against the endorsement of the product and that too generally under a contract. In fact they act as service providers in entire sales mechanism and therefore they become subject to Consumer Protection Act and also the money taken as consideration by the Brand Ambassadors is generally accounted in the cost of product and that is why the notice issued to Madhuri Dikshit by Food Department is a correct step in right direction. There is a need to fix the liability of Brand Ambassadors as well for the good claims made by them in their endorsements for the product.

The CAIT further said that engaging Brand Ambassadors for promotion of product has become a fashion in the Country and often the Consumer is trapped by such endorsement irrespective of quality of the product. Therefore, in order to protect Consumers, there is a need to bring Brand Ambassadors under the ambit of Consumer Protection Act.