Celebrity trappings : The Tribune India

Join Whatsapp Channel

real view

Celebrity trappings

The recent controversy involving Noida-based builder, Amrapali Group and their brand ambassador, cricketer, M.S Dhoni, has opened up a debate on the moral, ethical and legal obligations of brand ambassadors, more so on the need to regulate brand endorsements.

Celebrity trappings


Vinod Behl

The recent controversy involving Noida-based builder, Amrapali  Group and their brand ambassador, cricketer, M.S Dhoni, has opened up a debate on the moral, ethical and legal obligations of brand ambassadors, more so on the need to regulate brand endorsements.

Dhoni faced the social media ire of customers of Amrapali  Group, who were protesting against non- delivery of their apartments in Noida’s Sapphire project. The project had been launched in 2009 with promised delivery in 2011. Fed up with long delays, the homebuyers moved into apartments without completion certificate. 

The Amrapali controversy brought into focus the bigger issue of delay in the possession of about 60,000 flats by two dozen builders who owe hefty land dues to the Noida Authority. Though the Amrapali Group described the social media campaign against Dhoni as unreasonable, yet such was the intensity of the campaign that Dhoni had to opt out as brand ambassador and the company had to promise that pending work would be completed and  dues would be paid to the authorities to get occupation certificate, paving the way for registration of apartments in the name of homebuyers.

This problem of delayed delivery of apartments is not something new in NCR, particularly in Noida. The homebuyers have been facing it for the past 2-3 years and have been airing their grievances through protests in public and over social media, but to no  avail. The reason why similar protests created a big furore this time is because of the pro-consumer environment created by the reform-oriented Modi government, especially with the  Real Estate Regulation Act in place.

Similarly, the controversy over celebrity endorsements is not something new. Sometime back, the Maggi muddle had also raised the issue of brand ambassadors’ legal obligation/liability. Real estate developers in the NCR, have been extensively using celebrities — both sports & film celebrities — to boost marketing of homes  as this has been the worst hit region in terms of home sales. And in the past, also brand ambassadors used by the real estate companies have faced trouble over bad endorsements,  be it Australian cricketer Bret Lee who endorsed Pearl Infrastructure  or  an actor endorsing a Hyderabad-based real estate company involved in an alleged cheating case.

It is not that all the time only celebrity endorsers land into trouble, there are times when companies find themselves  in the dock because of them. Nike- Maria Sharpova association is a case in point. Her $ 12.5 million a year deal with Nike as its brand ambassador, was terminated by the company because she failed in her drug test. Of late some developers have not renewed their contracts with their brand ambassadors because of slow moving market  where new launches are not happening and brand ambassadors have not  been much effective in pushing up sales. A few months back, Noida- based J M Housing did not renew their contract with Kareena Kapoor and last year actor Kangana Ranaut’ contract was not renewed by Ajnara Group.

Legal matter

The opinion is divided on this crucial issue. There are those who maintain that celebrities have nothing to do with the production of products. Say in Dhoni's case, he had nothing to do with the construction or delivery of homes. Celebrities simply represent the product as they are directed to do. 

Those who are against legal binding on brand endorsers, say that celebrities do not personally insist on anyone to buy a particular product and as such why should they be held responsible for any product or service flaw? Naqvi adds that in case of Dhoni, he did not undertake any civil or criminal liability nor did he collude with the company to cause loss to homebuyers. Dr Banerji says that there is no legal binding on a brand ambassador unless he is an expert like professional engineer or architect  etc endorsing the brand or he is a director in the company. Otherwise, how can he be held responsible for any misdeed/non- compliance by the company. Legal experts opine that even if celeb endorsers are booked under certain provisions of the law, it would be difficult to prove in the court that the act of endorsement was done in a clear intent to harm anyone.

But then there is also many votaries who believe that brand endorsers have a legal obligation. They say that any misuse of their influential position by celebrities that causes harm to public, constitute as criminal breach of trust. And in case of exaggerated or broken promise, brand ambassador comes under criminal liability. Anybody who is endorsing a product/brand which is misleading or deceiving, would be liable under the law for misbranding. As such false or misleading endorsement by celebrities is in a way, irresponsible act by brand ambassador or in a way  amounts to betraying the trust of his/her followers or even cheating them as these influential personalities dictate consumers choice.

Time for regulate

While experts are divided over the legal liability issue,  there is  however near unanimity over the need to regulate brand ambassadors and brand endorsement. Dr Banerji calls for a law to regulate brand endorsements, ensuring due diligence by brand endorsers. Noted marketing expert Harsh Bijoor endorses Dr Banerji, saying that brand endorsements need to be done with 100 per cent due diligence. 

Noted consumer expert, Pushpa Girimaji, too, favours regulation for celebrity endorsements, with proper rules and regulations for traditional and new age media to protect consumers. Naqvi is also in favour of regulated brand endorsements with clear guidelines, fixing up accountability of brand ambassadors. “In case of any loss caused to consumer, brand ambassador should be asked to deposit his fee in consumer welfare fund of the government as penalty. Brand ambassador should not be allowed to enjoy the hefty fee at the cost of consumers,” says Naqvi.


Penalty issue 

Meanwhile, under the Consumer Protection Act, the government is considering penalising celebrities who are part of misleading ads. A parliamentary panel has suggested a very harsh punishment for brand endorsers  — fine of Rs 10 lakh and jail term of 2 years  for first time offender and a fine of Rs 50 lakh and jail term of 5 years for second time offender. 

Most of the marketing, branding and legal experts believe that such a harsh punishment under the proposed law is undesirable. Naqvi thinks that this is even harsher than the one under the newly passed Real Estate Regulation Bill that covers misleading ads among other offences. He believes that  such a harsh legislation will prove to be a big dampner for celebrity endorsements. Dr Banerji is of the opinion that with such a strong legislation, several brands and their agencies will be reluctant to take the services of brand endorsers. 

Whatever, may be the shape of  proposed regulation for celebrity endorsements, consumer protection is set to be strengthened further especially in real estate domain with the Real Estate Regulation Act being implemented in the coming months.

Top News

Jailed gangster-politician Mukhtar Ansari dies of cardiac arrest

Jailed gangster-politician Mukhtar Ansari dies of cardiac arrest

Ansari was hospitalised after he complained of abdominal pai...

Delhi High Court dismisses PIL to remove Arvind Kejriwal from CM post after arrest

Delhi High Court dismisses PIL to remove Arvind Kejriwal from CM post after arrest

The bench refuses to comment on merits of the issue, saying ...

Arvind Kejriwal to be produced before Delhi court today as 6-day ED custody ends

Excise policy case: Delhi court extends ED custody of Chief Minister Arvind Kejriwal till April 1

In his submissions, Kejriwal said, ‘I am named by 4 witnesse...

‘Unwarranted, unacceptable’: India on US remarks on Delhi CM Arvind Kejriwal’s arrest

‘Unwarranted, unacceptable’: India on US remarks on Delhi CM Arvind Kejriwal’s arrest

MEA spokesperson says India is proud of its independent and ...

Gujarat court sentences former IPS officer Sanjiv Bhatt to 20 years in jail in 1996 drug case

Gujarat court sentences former IPS officer Sanjiv Bhatt to 20 years in jail in 1996 drug case

Bhatt, who was sacked from the force in 2015, is already beh...


Cities

View All