Consumer Connect: Celebrities can be fined up to ₹10 lakh for fake ads, says expert

Consumer Connect: Celebrities can be fined up to ₹10 lakh for fake ads, says expert

Dr Archana Sabnis is an expert on consumer laws who is practising at consumer disputes redressal fora at district, state and national levels since 2000.

FPJ News ServiceUpdated: Monday, May 22, 2023, 08:16 AM IST
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Consumer Connect: Celebrities can be fined up to ₹10 lakh for fake ads, says expert | Representative Image

I have booked a flat with a builder which is nearing the date of possession. As per the agreement executed in August 2018, I am now required to pay to the builder advance maintenance charges for two years amounting to Rs1,20,000, although it is a redevelopment project and there exists a co-operative society to take care of maintenance of the new building. What should I do?

Chintamani Borse, Jalgaon

The RERA Act has mandated builders / promoters under Section 11 to take steps to form a co-operative society as soon as 50% of the flats in the project are sold. In your case, being a redevelopment project a co-operative society already exists and as such there is no reason why the builder should demand advance maintenance charges and that too for two years. This is contrary to the letter and spirit of RERA Act. Although this provision exists in your agreement with the builder, it is directly in conflict with statutory provision under RERA and hence you are not bound to comply with this demand. You can inform the builder that you will pay directly to the society whatever advance charges are decided to be collected by its general body. If the builder refuses to give possession, you can approach MahaRERA.

If I am residing in Kalyan and purchase a wristwatch from Thane, which consumer commission should I approach to lodge a complaint for the watch being defective?

Dinesh Tawade, Kalyan

Under the Consumer Protection Act, 2019, a complaint can be instituted in a district commission within the local limits of whose jurisdiction (i) any of the opposite parties reside or carry on business or have a branch office or personally work for gain; (ii) the cause of action, wholly or in part arises; or (iii) the complainant resides or personally works for gain. Thus, as per this provision, you can file a complaint before the district commission in whose jurisdiction Thane or Kalyan falls. In your case, since both Thane and Kalyan are under the jurisdiction of the Thane District Consumer Commission, you will have to file your complaint there.

When a celebrity is found making false claims about a product in a TV ad, what can be done to stop it? Can the celebrity be penalised?

MR Sanyal, Prabhadevi

A complaint can be filed with the district collector or to the Central Consumer Protection Authority (known as Central Authority) under Section 17 of the Consumer Protection Act, 2019. If the Central Authority is satisfied after proper investigation that the ad is false or misleading, under Section 21 of this Act it can direct the discontinuance or modification of the ad. The Central Authority can also impose a penalty up to Rs10 lakh on such celebrities. The Authority has further power to prohibit such celebrity from making endorsement of any product or service for a period up to one year.

Dr Archana Sabnis is an expert on consumer laws who is practising at consumer disputes redressal fora at district, state and national levels since 2000. She is on the panel of conciliators of MahaRERA and is associated with the Mumbai Grahak Panchayat.

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