Consumer Affairs Ministery issued endorsement guidelines for social media influencers on January 20, 2023. The government made it mandatory to disclose all the details about the product or service they’re endorsing.
A fine of Rs.10 lakh will be imposed on the offenders, which can go to Rs.50 lakh for the repeated offenders. The influencer can even be barred from endorsing products for up to six years in case of non-compliance with the guidelines.
Disclosures will be required to be published when there is a “material connection” between an advertiser and a celebrity or influencer, Central Consumer Protection Authority (CCPA) chief Nidhi Khare said.
The disclosures should be in simple and clear language and should be of a duration that is extremely hard to miss.
“The advertisements must contain truthful and honest representation, and should not be misleading to consumers by exaggerating the accuracy, scientific, validity, or practical usefulness or capability of performance of the product,” the Ministry stated.
“The guidelines have been issued under the ambit of the CCPA that provides the framework for the protection of consumers against unfair trade practices and misleading advertisements,” said Consumer Affairs Secretary Rohit Kumar Singh.
“The size of the social influencer market in India in 2022 was ₹ 1,275 crore and by 2025, it is likely to rise to ₹ 2,800 crores with a CAGR of about 19-20 percent. The social media influencer of substance, which means those having a good number of followers, is in excess of 1 lakh in the country,” Mr. Singh added.
“Influencer violations comprise almost 30 percent of ads taken up by ASCI, hence this legal backing for disclosure requirements is a welcome step,” said Manisha Kapoor, CEO & Secretary General, ASCI.