"The panel has discussed the issue at length at several meetings. It felt there was a need to fix some accountability for misleading ads. It has decided to recommend a hefty fine and even a jail term of up to five years," a source said.
For a first-time offence, the panel is planning to propose a Rs 10 lakh fine or imprisonment up to two years or both. A second offence could attract Rs 50 lakh fine and imprisonment for five years.
The 20-member Parliamentary Committee on Consumer Affairs, headed by Telugu Desam Party MP J C Divakar Reddy, is scheduled to meet again on April 19 to finalise the report, which will later be placed before the Parliamentary session starting April 25.
The sources added, "The panel is concerned about consumers who get misled by celebrity endorsements of products and services which are either poor quality or sub-standard."
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