Abstract Character merchandising is a widespread phenomenon and can be defined as means of marketing and advertising strategy to derive unfair benefit by using names, features, images of fictional characters and popular personalities for attracting customers. The objective of the paper is to emphasize on core legal implications of character merchandising. The purpose of the study is to analyze whether there is any requirement of separate law or an express provision in current statutes to tackle the legal issues involved in character merchandising or the current laws are sufficient. In the present age of consumerism such a concept has a very high ability to influence consumer behavior. An example of this can be seen as posters of actors and actresses outside local beauty parlors. It would not be possible for that Celebrity to bring an action on the ground of infringement of privacy unless it could be proved that the poster was taken in an unauthorised priv ....