Publishers, broadcasters of misleading ads can be fined Rs 10 lakh, agrees GoM

A Group of Ministers headed by Finance Minister Arun Jaitley has proposed a fine of up to Rs 10 lakh for all publishers and broadcasters of misleading advertisements, including newspapers and television channels.

Officials in the know said penal provisions has also been proposed for manufacturers of the goods in question. They could be jailed for up to two years and be fined Rs 10 lakh for a first offence. For a repeat offence, five years in jail and a fine of Rs 50 lakh.

The suggestions will go to the Union Cabinet for final approval and then be sought to be incorporated in the Bill to amend the Consumer Protection Act, already introduced in the Lok Sabha.

"In the case of publishers and broadcasters, the fine won't be levied if it is proved the advertisement was shown or printed without the consent of the publisher or broadcaster," a senior official said.

Misleading or false advertisements would be defined as those which do not deliver the benefits a product has promised.

Officials said there would also be a fine up to Rs 10 lakh and a ban of one year for celebrities endorsing misleading advertisements. For second and subsequent offences, a fine of Rs 50 lakh and a ban of up to three years has been proposed.

The GoM has also approved recommendations for a hefty penalty for adulteration, besides licence suspension/cancellation.

It has agreed to an enabling provision to make rules for regulating e-commerce and direct selling, and remove overlap of powers between the Central Consumer Protection Authority and consumer fora.