F&B regulatory crackdown sends celebrities into endorsement rethink

New Delhi: At least a dozen celebrities and influencers, including a leading Bollywood actor, have halted new endorsements for several food and beverage brands, amid regulatory crackdown on the sector, people aware of the decisions told ET. The screen star has said no to a global chocolate brand, while another celebrity has walked out of a deal with one of India's largest snacks firms ahead of the upcoming high-sales season, they said.

"This comes ahead of peak festive season when, typically, a lot of indulgence gifting categories, such as chocolates and gourmet snacks, sign big-ticket endorsement deals," said the chief of a leading Mumbai-based talent management firm. "This is the first time we are seeing such pushback from celebrities and influencers. We have cancelled two such deals for which we had been in talks since April."

This celebrity rethink comes as the Food Safety and Standards Authority of India (FSSAI) faces unprecedented judicial heat on mandatory labelling of packaged foods that are high in salt, sugar or fat content.

Image matters more than fines

FSSAI earlier warned celebrities in a social media post against endorsing foods with unverified or misleading claims, saying breaching guidelines would invite stringent penalties.

Experts, however, said brand ambassadors are more concerned about reputational risks than regulatory penalties. "Naming and shaming, and viral content on social media, are starting to hurt celebrities. It's not so much about financial penalties, which may not be steep for celebrities since they charge multiple times that penalty," said Sandeep Goyal, managing director of ad agency Rediffusion, which works closely with several A-lister endorsers across movies and cricket. "It's about the fear of stringent action and repercussions that did not ever happen earlier."

He believes the pushback indicates respect for the law - and recognition that the regulator could enforce its writ, saying, "What's happening now is a good trigger and indicates provisions of law can't be looked through."

The Maharashtra Food and Drug Administration, too, issued showcase notices to actors Shah Rukh Khan, Ajay Devgn and Tiger Shroff on August 16 for endorsing Vimal Elaichi, alleging that the ads indirectly promote pan masala and tobacco-related products by the same name, which are banned in Maharashtra. Executives representing celebrities, however, said while they have stepped up due diligence on contract fineprints, they can't be held responsible for every misstep by brands.