How to file complaints against fake online product endorsements?

Online product endorsements from celebrities, influencers, and online reviews play a significant role in shaping consumer buying decisions. However, the rise of fake online product endorsements has led to widespread deception, where consumers are misled by paid reviews, celebrity endorsements, and influencers promoting products they haven’t even used. These misleading practices undermine consumer trust and lead to financial loss. In such cases, consumers have the right to seek legal recourse under the Consumer Protection Act, 2019, and file complaints to protect their interests.

Steps to File Complaints Against Fake Online Product Endorsements

Step 1: Identify the Deceptive Endorsement

• Fake celebrity endorsements: If a celebrity claims to use or endorse a product without actually doing so, it's a violation of advertising norms.
• Influencer fraud: If an influencer promotes a product without revealing a paid partnership or if the endorsement is based on fake reviews, it is misleading.
• False claims in online reviews: If the product’s online reviews are fabricated, consumers may be misled into purchasing it.

Step 2: Gather Evidence

• Take screenshots: Capture screenshots or screen recordings of the misleading endorsements, fake reviews, or influencer posts.
• Save URLs and links: Save the webpages, social media posts, or videos where the fake endorsement is advertised.
• Document your purchase: Keep the receipt or any proof of purchase of the product endorsed fraudulently.

Step 3: Report to the Seller or Influencer

Direct complaint to the seller or influencer: Contact the seller, brand, or influencer directly to file a complaint. Request them to withdraw the misleading endorsement and take corrective action.

• Social media platform: If the endorsement was on social media, report the post to the platform (e.g., Instagram, Facebook, YouTube). Most platforms have a report abuse feature for misleading or fraudulent posts.

Step 4: File a Complaint with Consumer Forums

If the issue is not resolved directly, you can file a complaint with the consumer forum:

• District Consumer Forum: For claims up to ₹20 lakh.
• State Consumer Disputes Redressal Commission: For claims above ₹20 lakh but below ₹1 crore.
• National Consumer Disputes Redressal Commission (NCDRC): For claims over ₹1 crore.

In your complaint, provide all evidence (screenshots, communications, proof of purchase) to demonstrate that the endorsement was misleading and resulted in financial loss.

Step 5: Report to Advertising Standards Authorities

• Advertising Standards Council of India (ASCI): If the endorsement violates advertising guidelines, consumers can file a complaint with the ASCI. ASCI is the self-regulatory body for advertising in India and deals with misleading advertisements.
• ASCI complaint redressal system: ASCI has a complaint redressal system that allows consumers to report fake or deceptive advertisements or endorsements.
• Central Consumer Protection Authority (CCPA): The CCPA is empowered under the Consumer Protection Act, 2019, to take action against misleading advertisements and can issue penalties or prosecutions against violators.

Step 6: Seek Legal Recourse

If the matter is not resolved through consumer forums or regulatory bodies, consumers can approach civil courts to seek compensation for financial loss, distress, or any other damages caused by the fake endorsement.

Legal Provisions Protecting Consumers from Fake Online Product Endorsements

The Consumer Protection Act, 2019

Section 2(1)(r):

Under the Consumer Protection Act, 2019, misleading advertisements and endorsements come under unfair trade practices. Consumers can file a complaint under this provision if they are misled by fake product endorsements.

Section 14:

The Act provides for the right to redress in cases of unfair trade practices, including fake endorsements. The consumer forum can provide remedies like refund, replacement, or compensation.

Section 18:

Consumers can seek compensation for financial loss or mental distress caused by fraudulent or misleading marketing practices.

Advertising Standards and Regulations

ASCI Guidelines:

The Advertising Standards Council of India (ASCI) has clear guidelines about misleading endorsements, including the requirement for transparency in paid promotions. Influencers are required to clearly disclose sponsored content.

Section 21 of the Consumer Protection Act:

Provides for the Central Consumer Protection Authority (CCPA) to issue orders against misleading advertisements and deceptive marketing practices.

Consumer Protection from Deceptive Marketing

Section 2(1)(n) of the Consumer Protection Act, 2019:

Defines deceptive marketing practices, including misleading product endorsements. A consumer who has been deceived by such practices can file a complaint with consumer forums or regulatory bodies.

Section 20:

Deals with the penalties for deceptive advertisements, including monetary fines and imprisonment for the responsible party (e.g., the company, influencer, or agency).

Example of Filing a Complaint Against Fake Online Product Endorsements

Scenario:

A consumer purchases a fitness supplement after seeing a celebrity endorsement on a social media platform, only to find out later that the celebrity did not endorse the product, and the product itself was ineffective. The celebrity endorsement was paid and misleading.

Steps the Consumer Should Take:

• Step 1: Collect evidence (screenshot of the endorsement post, product receipt, etc.).
• Step 2: Contact the seller or celebrity influencer directly and demand clarification or a refund.
• Step 3: File a complaint with consumer forums for unfair trade practices and misleading advertising.
• Step 4: Report the fake endorsement to ASCI and CCPA for violating advertising regulations.
• Step 5: Seek legal recourse if the issue is not resolved.

Outcome:

The consumer receives a refund for the defective product. The influencer is penalized by ASCI for failing to disclose a paid promotion, and the company faces a penalty from the CCPA for misleading advertising.

Conclusion

Consumers who fall victim to fake online product endorsements can file complaints under the Consumer Protection Act, 2019 and seek compensation for financial loss or mental distress caused by misleading advertising. By gathering evidence, reporting to consumer forums, and involving regulatory bodies like ASCI and CCPA, consumers can take effective steps to hold companies and influencers accountable for deceptive marketing practices.