Surrogate Advertising in India: Law, CCPA Guidelines & Celebrity Endorsement

Context:

Recently, The Maharashtra Food and Drug Administration (FDA) has issued show-cause notices to actors Shah Rukh Khan, Ajay Devgn and Tiger Shroff over their endorsement of a Vimal Elaichi advertisement. The regulator has alleged that the advertisement may amount to surrogate advertising of Vimal Pan Masala, a product prohibited in Maharashtra. The actors have been given 15 days to explain their role and submit relevant documents.

What is Surrogate Advertising?

• • • Surrogate advertising is a marketing strategy used to indirectly promote products whose advertising is restricted or prohibited by law, such as tobacco, pan masala or alcohol.
    • A company may promote another legally permissible product using the same brand name, logo, packaging style, celebrities or visual identity, thereby maintaining consumer awareness of the restricted product.
    • The key concern is whether the apparently legal product is actually being used as a means to promote a prohibited product.

What Does the Maharashtra FDA Say?

• • • Maharashtra has prohibited gutkha and pan masala containing tobacco or nicotine under Section 30(2)(a) of the Food Safety and Standards Act, 2006. The current prohibition has been in force since July 13, 2026.
    • According to the FDA, the Vimal Elaichi advertisement's presentation, dialogue, product name and market association may indirectly promote the Vimal Pan Masala brand.

What Does the Law Say?

• • • Consumer Protection Act, 2019:

      • Section 2(28) defines a misleading advertisement as one that falsely describes a product, misleads consumers about its nature or quality, promotes an unfair trade practice or deliberately conceals important information.
      • Section 21 empowers the Central Consumer Protection Authority (CCPA) to order discontinuation or modification of misleading advertisements and impose penalties on endorsers.

    • CCPA Guidelines, 2022:

      • The Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022 specifically recognise surrogate advertising.
      • The CCPA can impose penalties of up to ₹10 lakh for a first contravention and up to ₹50 lakh for subsequent violations. An endorser may also be prohibited from making endorsements for up to one year, and up to three years for subsequent violations.

    • Food Safety and Standards Act:

      • The FDA has invoked Section 24, which restricts misleading food advertisements, and Section 53, which provides for a penalty of up to ₹10 lakh for parties involved in publishing misleading food advertisements.

Why Is the Case Significant?

The case highlights the growing regulatory challenge of distinguishing between a genuine legal product and a brand-extension strategy designed to indirectly advertise a prohibited product.

It also raises questions about the responsibility of celebrities. Endorsers are increasingly expected to conduct due diligence before associating themselves with potentially misleading advertisements.

Conclusion:

The Vimal Elaichi controversy highlights the tension between commercial freedom and public-health regulation. While companies can legally advertise permissible products, regulators must ensure that such advertisements do not become a vehicle for promoting prohibited tobacco products. The case also reinforces the growing accountability of advertisers, brands and celebrity endorsers under India's consumer-protection framework.