3 Jun 2011

Celebrities in fining line for finance endorsements

5:47 am on 3 June 2011

Celebrities could face fines of up to $1 million for making false statements about financial services and products.

The penalty is part of new laws being drafted by Commerce Minister Simon Power.

The role of celebrity endorsements was raised following the collapse of several finance companies, prompting the Government to review the regulations.

Mr Power says under the proposed changes, anyone who makes misleading statements in a product disclosure statement or advertisement will be liable for a fine of up to $1 million. Companies will be liable for a fine of up to $5 million.

He says that means celebrities who make false statements will face significant liability. They will not be considered liable if a product fails and they have not made misleading statements.

A draft of the proposed changes will be released for public consultation in August.