From Influence To Liability: Deceptive Endorsements And The Duty Of Due Diligence Under The Consumer Protection Act, 2019
- IJLLR Journal
- 40 minutes ago
- 2 min read
Misba Sayyed, BA LLB, KES Shri Jayantilal H. Patel Law College
Arya Khond, BA LLB, KES Shri Jayantilal H. Patel Law College
“Advertising is the art of convincing people to spend money they don’t have for something they don’t need.” - Will Rogers
ABSTRACT
"Influence is our new currency, but with currency comes liability."
India's influencer marketing industry reached ₹3,600 crore in 2024. Analysts expect growth of 25% into 2025. This growth opens the door for dishonest endorsements that take advantage of consumer trust in personal recommendations. The Consumer Protection Act, 2019 (CPA 2019) is a significant regulatory measure. It gives the Central Consumer Protection Authority (CCPA) the power to fight misleading advertisements through Section 2(28). This section defines such ads as those that falsely describe products or services, make untrue promises about quality or performance, create unfair impressions about market practices, or hide important information. It also holds endorsers directly responsible under Section 21. Penalties are harsh: a fine of up to ₹10 lakh plus a one-year endorsement ban for first offenses, increasing to ₹50 lakh and three years for repeat offenses. High-profile cases illustrate this change. For example, there were FIRs against celebrities Amitabh Bachchan and Madhuri Dixit in the Maggi noodles case in 2015, and the Supreme Court made remarks in 2024 about Patanjali, stating that "celebrities and influencers are equally liable" for irresponsible promotions. This research paper analyzes the basics of endorsements and misleading ads, the statutory due diligence defense in Section 21(5), challenges in digital markets (including dark patterns like PharmEasy 's basket sneaking), and gaps in enforcement and standardization. The findings show a strong but incomplete framework that needs checklists for verification, graduated penalties based on influencer reach and sector risk, safe harbor provisions for well-intentioned actors, and technology- driven monitoring. These reforms would balance consumer protection with Article 19(1)(a) rights of commercial speech, ensuring that influence leads to responsible accountability instead of unchecked deception.
