Amagistrate's court in Rajasthan, India recently directed the registration of a First Information Report (FIR) against Hyundai Motor India, several senior company officials, a local dealership, and two of Bollywood's biggest stars—Shah Rukh Khan and Deepika Padukone.
The complaint arose from alleged defects in a Hyundai Alcazar SUV purchased in 2022. The owner, a practicing lawyer, claims the car repeatedly malfunctioned, displayed “Engine Management System” errors, and posed safety risks to his family. The inclusion of the celebrity endorsers in the FIR has captured global attention and reignited debate on the accountability of brand ambassadors in India.
The Case at a Glance
- Complainant: Kirti Singh, a lawyer from Bharatpur.
- Vehicle: Hyundai Alcazar, purchased for approx. ₹23.97 lakh (~USD 28,500).
- Allegations: Persistent defects—excessive vibration, failure to accelerate, and system malfunction warnings.
- Initial Response: The dealership reportedly acknowledged the problem but offered only temporary “workarounds.”
- Court's Intervention: When police initially declined to register the complaint, the magistrate directed an FIR on August 25, 2025.
- Who's Named: Hyundai executives, dealership officials, and endorsers Shah Rukh Khan (brand face since 1998) and Deepika Padukone (appointed in 2023).
- Charges Invoked: Cheating (s.420 IPC), criminal breach of trust (s.406 IPC), conspiracy (s.120B IPC), and corresponding provisions under the Bharatiya Nyaya Sanhita.
Why the Endorsers Were Named
The Consumer Protection Act, 2019 explicitly empowers the Central Consumer Protection Authority (CCPA) to take action not only against manufacturers and advertisers but also against endorsers of misleading advertisements.
Under Section 21 of the Act, CCPA may direct discontinuance or modification of a false/misleading advertisement. In case of refusal to comply, monetary penalties up to ₹10 lakh (~USD 12,000) for the first contravention, and up to ₹50 lakh (~USD 60,000) for repeat contraventions may be imposed. In addition, endorsers can be banned from future endorsements for up to 1 year, rising to 3 years for repeat offences. However, endorsers are not liable if they can show they exercised “due diligence” in verifying claims.
To operationalize Section 21, CCPA has also issued the Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022, which apply to manufacturers, advertisers, agencies, and endorsers. The Guidelines require endorsements to reflect genuine and current opinion, be capable of substantiation, and avoid unqualified superlatives.
Together, they emphasize that endorsers cannot rely solely on the brand's reputation—they must actively verify claims and disclose connections to avoid liability.
Thus, the legal theory behind naming Shah Rukh Khan and Deepika Padukone is that their endorsements may have created a misleading impression of reliability, directly influencing consumer choice.
Key Takeaways
- Endorser liability is codified: The Consumer Protection Act, 2019 makes endorsers directly accountable, with penalties up to ₹50 lakh and bans up to 3 years.
- Due diligence is critical: The only statutory defence is proof of due diligence—agencies should build processes to substantiate claims and document checks.
- Contracts should allocate risk: Endorsement agreements must contain warranties, indemnities, and exit rights to protect both endorsers and brands.
- Global campaigns must localize: What is acceptable puffery in the U.S. or Europe may attract liability in India. Jurisdiction-specific vetting is essential.
Conclusion
The Hyundai Alcazar dispute illustrates that in India, celebrity endorsements are not only marketing tools but regulated legal commitments. The case is currently pending and it remains to be seen how the Bollywood stars shall fare.
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