 "Actor and brand ambassador Ranveer Singh with Alex Feng, CEO of Vivo India, at the launch of its new phones and the IPL trophy in Mumbai")
Brand and marketing experts have termed a proposal by a Parliamentary Committee to penalise celebrity brand ambassadors for misleading advertisements as a case of overzealousness. While due-diligence levels are expected to go up if it becomes law, most celebrity managers that Business Standard spoke to fear that the move could actually discourage brand endorsements.
"About a year ago, state food regulators had come down hard on Maggi's brand ambassadors both past and present for being part of ads that misled consumers about the product. This was at the height of the Maggi controversy and was perceived even then as being inappropriate by most experts and observers,” said Indranil Das Blah, COO, Kwan Entertainment & Marketing Solutions that manages the endorsements of a number of sports and entertainment celebrities.
“Brand endorsers are merely the face of the brand, they are not drivers of the manufacturing and marketing strategy. How can they be held responsible for the claims made by a marketer in an ad?" he asks.
Ve Ve Prabhu, a Chennai-based brand and communication expert say the government's move is akin to shooting the messenger. "I find it completely ridiculous. While the intention may be noble, penalising brand ambassadors is not the solution. Instead the marketer is culpable in the event of misleading ads," Prabhu said.
The recommendation by a Parliamentary Committee formed to oversee the revamped Consumer Protection Bill, which is expected to be tabled in parliament in the future, has suggested a fine of Rs 50 lakh or a five-year jail sentence for celebrity endorsers who are part of misleading ads.
Khakhai Zou, deputy secretary, Parliamentary Committee on Food, Consumer Affairs & Public Administration, only said that a detailed report on the matter would be submitted shortly. "We haven't submitted a report yet. We will do it shortly," he told Business Standard.
Celebrity endorsements are common in a country where Bollywood and cricket are considered religions unto themselves. Typically, brand ambassadors in Bollywood and sports domain command crores of rupees in fees to endorse brands.
While most marketers see no harm in contracting the services of celebrities for their products, saying it helps in easy brand recall, there are voices that have come out against the practice, calling it a distraction.
At the recently concluded Goafest, an annual convention of marketing, advertising and media professionals, former Sri Lanka cricket captain Arjuna Ranatunga, who is now the ports and shipping minister in his country, came down hard on the practice of sports people chasing brand endorsements. "This is a distraction," he said. "Cricketers should avoid it and focus on their game instead.”
Closer home, however, experts such as Harish Bijoor, CEO of Bengaluru-based consultancy Harish Bijoor Consults, said penalising celebrity brand ambassadors was not out of place at all. "They are stake-holders as well when they come on board as endorsers and should be penalised if they are part of misleading ads," he adds. “After all, don't they bring their high profile to brands they endorse?”
