Kerala HC clears Mohanlal in Manappuram Finance ad case
What's the story
The Kerala High Court dismissed a consumer complaint against actor Mohanlal over allegations that he misled gold loan customers through Manappuram Finance advertisements. The ads promised a 12% interest rate and featured him as the brand ambassador. Justice Ziyad Rahman A A ruled that endorsers, like the actor, are only liable if there's a direct connection to the transaction, which wasn't proven in this case.
Case details
Case background and allegations against Manappuram Finance
The complaint was filed by two borrowers who claimed they were persuaded to shift their gold loans to Manappuram Finance after being promised a lower annual interest rate of 12%. They claimed that this rate was advertised in various media campaigns featuring Mohanlal. However, when they later sought to close the loan and retrieve their gold ornaments, a higher interest rate was demanded from them.
Ruling details
Court's ruling and clarification on celebrity liability
The court noted that the complaints did not establish any direct link between Mohanlal and the transactions in question. "There is nothing to indicate that the second and third respondents (complainants) were persuaded to avail the services, on account of the assurance in the advertisements made by the fourth respondent (Manappuram Finance), wherein, the petitioner acted as the ambassador of the establishment," it said as per The Indian Express.
Legal options
Complainants can still seek remedy under Consumer Protection Act
The court also quashed the orders of the commissions against Mohanlal. The court clarified that celebrities are not automatically liable for a company's actions unless they are directly connected to the alleged wrongdoing. However, if the complainants believe the advertisements were misleading, they may still pursue action under Section 21 of the Consumer Protection Act, 2019, which deals with penalties for false or misleading ads.