Govt may ini­ti­ate ac­tion against celebri­ties for en­dorse­ment of sub-stan­dard prod­ucts

Consumer Voice - - In The News -

Strict guide­lines are on the anvil to reg­u­late mis­lead­ing ad­ver­tise­ments so that pro­mo­tion and prop­a­ga­tion of fake, spu­ri­ous and sub-stan­dard prod­ucts are halted for good, was the state­ment from Sec­re­tary of Depart­ment of Con­sumer Af­fairs Keshav De­sir­aju. Speak­ing at a sem­i­nar on ‘Best Business Prac­tices for Con­sumer Wel­fare’, or­ga­nized on 8 Au­gust in New Delhi un­der the aegis of PHD Cham­ber of Com­merce and In­dus­try, De­sir­aju also said, “The gov­ern­ment is aware that celebri­ties and stars keep en­dors­ing prod­ucts with­out check­ing and ex­am­in­ing the ef­fi­cacy of the prod­ucts of mass con­sump­tion. Since such en­dorse­ments at­tract at­ten­tion of scale from vast num­ber of con­sumers, the gov­ern­ment would need time to de­velop a mech­a­nism to ef­fec­tively take on the is­sue as the pre­vail­ing sys­tem has no le­gal support to han­dle it.”

The sec­re­tary spelt out that strict guide­lines were be­ing evolved in the min­istry in con­sul­ta­tion with stake­hold­ers to curb and pre­vent the in­creas­ing men­ace of mis­lead­ing ad­ver­tise­ments, pro­nounc­ing false prom­ises and com­mit­ments to mis­lead the pub­lic, es­pe­cially in the field of health­care, food, tele-mar­ket­ing, ed­u­ca­tion, real es­tate and medi-care in­dus­try.

A cab­i­net note will be finalized to sug­gest amend­ments in the Con­sumer Pro­tec­tion Act of 1986 as also Bureau of In­dian Stan­dards Act so that a host of mea­sures are in­cor­po­rated in the pro­posed amend­ments to en­sure con­sumers gen­uine and qual­ity prod­ucts and to force man­u­fac­tur­ers to adopt the newly evolved stan­dards in their man­u­fac­tur­ing process. Di­rec­tor Gen­eral of Bureau of In­dian Stan­dards Su­nil Soni said that the reg­u­la­tory body would also evolve a num­ber of new stan­dards that in­dus­try would have to con­form to so that prod­ucts sold off in the mar­kets are made of pro­cesses and qual­i­ties of world stan­dards.

Among other who par­tic­i­pated in the sem­i­nar were San­jay Bha­tia, for­mer pres­i­dent and chair­man, Business Prac­tices & Awards Com­mit­tee, PHD Cham­ber; Ram Poddar, co-chair­man, In­dus­try Af­fairs Com­mit­tee, PHD Cham­ber, and its Ex­ec­u­tive Di­rec­tor Sau­rabh Sanyal. Con­sumer Voice was me­dia part­ner for the event and was duly rep­re­sented by COO Ashim Sanyal.

14 auto ma­jors fined Rs 2,545 crore by fair trade reg­u­la­tor

In the first ma­jor or­der against the auto sec­tor, fair trade watch­dog Com­pe­ti­tion Com­mis­sion of In­dia (CCI) has slapped a penalty of Rs. 2,545 crore on 14 car­mak­ers, in­clud­ing Maruti Suzuki and Tata Mo­tors, for violating trade norms in the spare parts mar­ket.

Honda Siel Cars In­dia, Volk­swa­gen In­dia, Fiat In­dia Au­to­mo­biles, BMW In­dia, Ford In­dia, Gen­eral Mo­tors In­dia, Hin­dus­tan Mo­tors, Mahin­dra & Mahin­dra, Mercedes-Benz In­dia, Nis­san Mo­tor In­dia, Skoda Auto In­dia and Toy­ota Kir­loskar Mo­tor have also been pe­nal­ized. For each en­tity, the in­di­vid­ual fine amounts to 2 per cent of their av­er­age turnover. The penalty is to be de­posited within 60 days of re­ceipt of the or­der.

A de­tailed in­ves­ti­ga­tion re­vealed that th­ese car com­pa­nies vi­o­lated com­pe­ti­tion norms with re­spect to their agree­ments with lo­cal orig­i­nal equip­ment sup­pli­ers (OESs) as well as in terms of pacts with au­tho­rized deal­ers. Through th­ese agree­ments, the car­mak­ers ‘im­posed ab­so­lute re­stric­tive covenants and com­pletely fore­closed the after-mar­ket for sup­ply of spare parts and other di­ag­nos­tic tools’, the reg­u­la­tor said.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.