CCPA proposes strict penalties for surrogate advertising in new guidelines

The Central Consumer Protection Authority (CCPA) is drafting new regulations aimed at prohibiting celebrities and influencers from promoting alcohol and tobacco products through surrogate advertising. According to reports, the guidelines could impose fines of up to Rs 50 lakh for violations linked to surrogate advertisements.

Under the proposed rules, celebrities and influencers involved in surrogate advertising may face a penalty of Rs 10 lakh for a first offense, with the fine increasing to Rs 50 lakh for subsequent violations. The draft guidelines stress that influencers and celebrities must refrain from endorsing restricted products such as alcohol and tobacco. Those promoting items like soda, bottled water, CDs, USB drives, or clothing are required to ensure these products do not feature branding, messaging, or packaging that closely resembles alcohol or other restricted brands.

India enforces a complete ban on tobacco and alcohol advertising, but liquor brands often circumvent the ban by promoting non-alcoholic products with similar branding. The new regulations aim to prevent brands from subtly promoting restricted items by associating them with permissible products.

Recently, the CCPA issued notices to major companies, including Bacardi, Pernod Ricard, United Breweries, Radico Khaitan, and William Grant & Sons, for allegedly promoting alcohol indirectly through non-alcoholic products that featured similar branding.