NEW DELHI : Liquor ad masquerading as soda? Tobacco ad in the guise of cardamom? Companies pushing surrogate advertisements of products they are not allowed to promote may face stiff penalties to be specified in upcoming consumer protection guidelines, two officials aware of the plans said. A committee formed by the Central Consumer Protection Authority (CCPA) on surrogate advertisements is meeting next week to discuss the matter, one of the two officials said. Promotional activities must be genuine, and companies should not misuse legal provisions for brand extension, the official said on condition of anonymity.
“There are several well-known alcoholic beverage companies that engage in brand extension through surrogate advertisements. Once these guidelines are notified in consultation with all stakeholders, there will be a complete ban on such methods of brand promotion," the official said. “The guidelines will be governed by the Consumer Protection Act.
It will specifically mention what they (firms) can do and what they cannot. Violation of the norms will attract penalties up to ₹50 lakh," the official added. The Act empowers the Authority, which comes under the consumer affairs ministry, to issue guidelines to prevent unfair trade practices and protect consumer interest.
“Cases where spirits companies promote their brands through items such as music CDs, glasses, soda, etc., but these products are not available for sale in the open market—this practice needs to be stopped," the official said. “Similarly, brands of gutkha, a prohibited item, are promoted under the name of elaichi (cardamom), which is also not available in the open market," the official added. The consumer authority’s glare on surrogate ads follows its
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