Celebrities endorsing products also liable for misleading advertisements: Panel

Dipak Kumar Dash,TNN | Feb 4, 2014, 05.22 AM IST 

The authorities are mulling provisions to ensure that celebrities endorsing products are also made liable for misleading advertisements.

 

NEW DELHI: If the skin whitening cream isn't as phenomenal as advertised or the hair oil not producing a lush mop as promised, you may soon be able to claim compensation not only from the advertisers, but from the celebrities endorsing the product. 

The Central Consumer Protection Council(CCPC), under the chairmanship of minister K V Thomas, on Monday decided to set up a sub-committee to suggest strategies to deal with such advertisers. Among the concerns raised was peddling of products by celebrities. 

"About 50% of the daylong conference was spent addressing ... the huge impact of misleading advertisements, particularly food items, hair oil and health products," said a CCPC member who attended the meeting in Kochi. "Even the celebrities must pay compensation in case there is a complaint," said Joseph Victor, a CCPC member. 

Panel mulls measures to monitor ad claims 

What seems to have moved the consumer affairs ministry is a direction from the MP high court to set up an ad monitoring panel as recommended by the Vibha Bhargava Commission. "An ad monitoring committee with proper budgetary support from the Centre may be set up to monitor the advertisements on regular basis... the committee will have the powers to (take) corrective actions and (impose) compensation," the CCPC said. 

Sources said that the decision was taken unanimously by CCPC, which has members from central and state governments, besides representatives from consumer organizations and academicians. The sub-committee may be formed in less than a week and could submit its recommendations by February-end, sources said. 

Some members told TOI the issue of southern superstar Mamootty endorsing products was discussed. "We have similar problems across the country. We have Shahrukh Khan or some other Hindi film star endorsing consumer items and they get huge payment for doing so. Misleading ads featuring such famous faces shown on TV even for a day serves the purpose of advertisers. We discussed how suo motu action can be taken against ads which have been withdrawn. Even the celebrities must pay compensation in case there is a complaint," said Joseph Victor, a CCPC member. 

Another member, Ashim Sanyal, said he had raised the issue of monitoring ads, which are in huge numbers and across different modes and media. "We need to plan the mechanism for monitoring. The sub-committee will come out with directions and provisions to deal with the menace," he added. Lok Sabha MP Charles Dias, who also attended the meeting, told TOI that concerns were raised on manufacturers' ad spend, which is passed on to buyers. "Most of us felt that there should some sort of monitoring on how much is being spent on advertisements," he said.

‘Yes, we spent money on paid news ads’

P. SAINATH

   

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Confessions by politicians to EC belie claims of innocence by top newspapers

The political class is more honest than the media when it comes to ‘paid news’ during elections, judging by the fact that several poll candidates have owned up to this corrupt practice. At least, after the Election Commission and the Press Council of India shot off notices to them and held inquiries into the matter. They have acknowledged guilt by belatedly adding their “news” buying expenses to their election statement of accounts. Some candidates have accepted in writing that they bought what are now called, somewhat oxymoronically, “Paid News Advertisements.” But not a single one of the newspapers they say they gave their money to has accepted any wrongdoing. 

These are not just any papers. In readership terms, they include three top-ranked dailies.

In some cases, the battles are still on, involving both the politicians and newspapers concerned. On January 15, the EC found that Madhya Pradesh Cabinet Minister Narottam Mishra “failed to lodge his accounts of his election expenses in the manner prescribed by law.” He faces possible disqualification. The EC’s notice to Dr. Mishra concerns 42 news items on him during the November 2008 state elections. These, it pointed out, “read more like election advertisement(s) in favour of you alone rather than (as) news reports.” The EC names four newspapers in its notice: Dainik Bhaskar, Nai Duniya, Aacharan and Dainik Datia Prakash. Dainik Bhaskar is the second most-read daily in the country.

Less than a month earlier, the Press Council of India held quite a few dailies guilty of doing much the same thing during the 2010 Bihar assembly polls. These include Dainik Jagran, the newspaper with the highest readership in the country. The others are Dainik Hindustan, Hindustan Times, Dainik Aaj and Purvanchal Ki Raahi. Also, Rashtriya Sahara, Udyog Vyapar Times and Prabhat Khabhar.

In many cases, the route to exposure followed the pattern set in the classic case of the former Congress Chief Minister of Maharashtra, Ashok Chavan. His 2009 poll campaign for the State legislature drew scores of full pages of “news.” Not a single one of those pages ever mentioned the name of Madhav Kinhalkar, his rival for the Bhokar seat. In a 2009-10 investigation into paid news, The Hindu found a hagiographical article on Mr. Chavan appear word for word in three major rival publications. In two of them, on the same day, in all of them under different by-lines (The Hindu, Nov. 30, 2009).

The 2010 Bihar polls saw a similar pattern. This time, though, one paper came up with a truly novel defence. Same story in different papers? That’s not paid news, argues Udyog Vyapar Times. It submits that other newspapers “hack their computer site and publish the same news.” So what might look like paid news, contends Udyog Vyapar Times, is merely the outcome of desperate rivals hacking into the internal network of this Aligarh-based daily to steal their national exclusives.

How did the candidates issued ‘Paid News’ notices for the Bihar polls by the EC react? All but one seem to have accepted their guilt. According to the EC, they did so by simply adding “the expenditure included by them on account of these ‘news’ in their accounts of election expenses.” In fact, the District Election Officer of Muzaffarpur in Bihar stated flatly that the dailies had carried “news for payment.” He even had letters from the candidates owning up to buying “news.”

The Press Council of India, acting on the matter referred to it by the EC, issued show cause notices to Dainik Jagran, Dainik Hindustan, Hindustan Times et al, between July and September 2011. On December 21, 2012, the PCI, on the basis of its own inquiry committee’s report, got tough. Of the high-profile line-up, only Prabhat Khabhar escaped “the highest penalty” of the Press Council — censure — under Section 14 (1) of the Press Council Act of 1978. This was the only case where the paper and the candidate both firmly denied the charge. (In all the other cases, the candidates accepted they had purchased “news”.) And Prabhat Khabar’s own record — it has strongly campaigned against paid news — added weight to its defence. The paper offered to apologise if the EC produced proof of any such aberration. It was “cautioned for the future.”

All the other dailies denied the charges, too. But, as the PCI’s inquiry committee puts it, “in all these cases, the candidate in question admitted before the Election Commission of India that he paid for the impugned material.” These dailies were found “guilty of having carried news reports that were in fact self-promotion material provided by the candidate in the fray,” and so faced the highest penalty of censure.

So quite a few politicians seem willing to confess to their paid news sins. They face penalties, too. Just 16 months ago, the EC disqualified Umlesh Yadav, then sitting MLA from Bisauli in Uttar Pradesh, for a period of three years for failing to provide a “true and correct account” of her election expenses. She had skipped any mention of her spending on advertisements dressed up as news during her 2007 poll campaign. She was the first legislator ever to bite the dust on grounds of excessive expenditure (and paid news). Dr. Mishra, Health Minister in the BJP government of Madhya Pradesh, now faces charges of the kind that got her disqualified.

Ashok Chavan case

Oddly enough, the Ashok Chavan case, which triggered off a spate of such cases, is itself bogged down in both the EC and the Supreme Court. The case of former Jharkhand Chief Minister Madhu Koda is likewise held up in the courts. Judicial delays could have a serious and possibly adverse impact in the fight against Paid News in the 2014 general election.

But what action do habitual offenders in the media face? The Paid News Committee constituted by the Election Commission has concluded that those 42 “news items” involving Dr. Mishra “appear to be advertisements in the garb of news” and fall “within the definition of ‘Paid News’.” The Press Council defines Paid News as “any news or analysis appearing in any media (print or electronic) for a price in cash or kind as consideration.” A Press Council team appointed by PCI Chairperson Justice Katju found last month that Paid News had been rampant in Gujarat during the State polls there in December 2012.

So what happens where media outlets concerned are found guilty? Where the “highest penalty” is censure and that draws not even an apology? Of course, Paid News is not only about elections, though that’s where it does greatest damage to the greatest number. It is an everyday activity in much of the media. The cloying coverage that powerful corporations get routinely reeks of it. You can see it in some completely corporate “sporting” events or “partnerships.” Governments, too, buy “news” sometimes. You can see it at work in Davos, too. Who funds journalists and channels from India at that World Economic Forum event each year is worth looking at. But that’s another story. Watch this space.

sainath.p@thehindu.co.in

Keywords: paid news, Press Council of India, Paid News Advertisements, Narottam Mishra, Paid News Committee