Rs 50 lakh fine on celebs and influencers for promoting surrogate alcohol or tobacco ads

First-time violation may result in a Rs 10 lakh penalty, while repeat offenses could lead to fines up to Rs 50 lakh

by e4m Staff
Published: Oct 30, 2024 5:00 PM | 1 min read

Celebrities and influencers promoting surrogate advertising for alcohol and tobacco products now face steep fines as the Central Consumer Protection Authority (CCPA) intensifies its crackdown. Under the draft guidelines, first-time violation may result in a Rs10 lakh penalty, while repeat offenses could lead to fines up to Rs 50 lakh. This move directly targets indirect promotions of prohibited goods—where brands market non-alcoholic or similarly branded products as a workaround to advertise their alcohol lines.

The new guidelines reinforce earlier regulations under the Consumer Protection Act of 2019 and the 2022 Guidelines for Prevention of Misleading Advertisements, holding all involved parties accountable, from manufacturers and endorsers to media platforms.

Brands often bypass this restriction through surrogate marketing—advertising sodas, bottled water, and other non-alcoholic products with branding or packaging that closely resembles their restricted items. The CCPA’s updated rules specifically address this practice, aiming to prevent brands from indirectly promoting banned products by associating them with permissible goods.

In addition to targeting surrogate advertising, the guidelines emphasise stricter standards for health and wellness claims made by influencers and virtual influencers, requiring them to provide credible evidence and avoid misrepresenting endorsements as professional advice.