Court Rules Brand Ambassadors Cannot Be Held Liable Without Direct Consumer Link
In a landmark decision, the Kerala High Court has ruled in favor of renowned actor Mohanlal Viswanathan, dismissing a consumer complaint against him related to his role as a brand ambassador for a financial service provider. The judgment, delivered by Justice Ziyad Rahman A.A., emphasized that endorsers cannot be held liable for unfair trade practices or deficiencies in service unless a direct link between the consumer and the endorser is firmly established.
The case revolved around a complaint filed by two consumers against M/s Manapuram Finance, where Mohanlal served as a brand ambassador. The complainants alleged that they were misled by advertisements featuring Mohanlal that promised lower interest rates on gold loans. However, upon settling their loans, they were charged a higher interest rate than advertised, prompting them to seek compensation for the excess interest paid and damages for mental agony.
Mohanlal's legal defense argued that his role as a brand ambassador did not establish a direct relationship with the consumers and that his involvement was limited to appearing in promotional materials. The court concurred, stating that merely being a brand ambassador does not impose liability for deficiencies or unfair trade practices unless the endorser was directly involved in the specific transaction.
The judgment further clarified the provisions under the Consumer Protection Act, 2019, regarding the role and liability of endorsers. It highlighted that while endorsers could face penalties under Section 21 for misleading advertisements, such liabilities are contingent upon the absence of due diligence in verifying claims made in the advertisements.
The court's decision to quash the orders of the District and State Consumer Disputes Redressal Commissions underscores the necessity of establishing a direct link between consumers and endorsers in complaints regarding unfair trade practices. However, the court noted that the complainants retain the right to pursue action against M/s Manapuram Finance and to approach competent authorities under Section 21 if they find the advertisements misleading.
Bottom Line:
Consumer Protection Act, 2019 - Liability of a brand ambassador/endorser in consumer complaints - Endorser cannot be held liable for unfair trade practices or deficiency of service unless a direct link is established between the consumer and the endorser.
Statutory provision(s): Consumer Protection Act, 2019 Sections 2(18), 2(47), 21
Actor Mohanlal Viswanathan v. State of Kerala, (Kerala) : Law Finder Doc Id # 2835386
