Saturday, December 20, 2008

Risks Involved in Brand Endorsement

Do you think the Brand Ambassadors will be paid more after the new Companies Bill 2008. The new law says that “Celebrities will be subjected to legal action, if they use misleading claims to induce consumers to buy a product and the companies shall be charged a penalty”. The law makes Brand Ambassadors to be careful, cautious and ensure the authenticity of the claims while they endorse a brand.
Is there anything in the law about the post endorsement actions?, i.e. A celebrity endorses for a brand and after few months if the claims about the product prove to be wrong, is there any action taken against the Celebrity? Don’t you think the law is biased towards celebrities. Is this the risk taken by the celebrities? Will this make the celebrities demand more remuneration because of the risk involved?

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